US: The US Islamic funds industry’s assets under management (AuM) dropped by 15.09%, falling from US$10.77 billion to US$9.14 billion as of Q1 2025, according to the IFN Investor Funds Database. This AuM decline coincides with the lower average three-month return of approximately -3.29% for US Islamic funds from Q1 2025 to Q2 2025, a downturn attributed to recent market volatility and broader economic pressures brought about by sweeping tariffs announced by the Trump presidency. A longer-term perspective showed that US Islamic funds experienced a decline in Q1 2025, with average one- and three-year returns falling notably to 1.49% (from 10.24%) and 3.19% (from 3.7%) respectively, compared to Q4 2024.
The US remains the fourth largest Islamic funds market globally by AuM, contributing 5.72% of total industry assets (excluding Iran), according to the IFN Investor Funds Database.
