Javelin Exchange Traded Funds (“JETS”) Dow Jones Islamic Market International Index Fund seeks to match the performance of the Dow Jones Islamic Market (“DJIM”) Titans 100 Index. The index is composed of 100 companies located outside the United States, comprising some twenty-three countries and exposure to 18 different trading currencies. The fund anticipates a gross expense ratio of 0.68 percent.
“Adherence to Islamic law leads to a sound investment strategy with an emphasis on concrete assets and services,” sayss Javelin President and Founder Brint Frith. “By avoiding such areas as gaming and alcohol, the results are often similar to those of the socially responsible investment funds.”
Islamic finance rules are said to originate with the Prophet Mohammed in the 7th century.
In addition to alcohol and gaming, Islamic law prohibits investment in pork products and certain forms of entertainment. Because Shar’iah law also objects to borrowing or lending at interest, financial stocks are reduced as are highly leveraged companies.
The index’s largest sector weighting as of May 29, 2009 was oil & gas, followed by basic materials, health care, technology and telecommunications. As of that date, the United Kingdom showed the highest country allocation at 21.04 percent of the index, followed by Canada (10.71 percent), Japan (9.83 percent) and France (9.82 percent).