Saturna Capital has joined forces with HANetf to launch an equity ETF that will focus on Islamic-compliant stocks with positive ESG characteristics.
Saturna Al-Kawthar Global Focused Equity UCITS ETF (AMAL) is said to comply with the sharia principles while integrating ESG scoring into the investment process.
The Islamic-focused ETF is managed by Saturna Capital, a $6bn asset management firm based in the US, which HANetf highlighted is one of the largest managers of Islamic-compliant assets in the US.
AMAL will follow a similar investment philosophy and approach of Staurna's US-registered Amana Growth, Amana Income and Amana Developing World funds, which also incorporate Islamic and ESG guidelines.
Jane Carten, president of Saturna Capital, said: "For several years investors from outside the US have asked how they could access our investment strategies and we are excited to have this opportunity to offer an Islamic UCITS ETF to those investors."
Hector McNeil, co-CEO of HANetf, said: "Active ETFs are the next frontier for the European ETF market. Regulators have played a major role in the rise of active ETFs in the US and what happens in the US tends to follow here.
"Typically, the US is two-to-three years ahead in AUM growth and product innovation. If this is the case, then it is only a matter of time before active ETFs become commonplace in Europe."
The Islamic-focused ETF is listed on the London Stock Exchange, Borsa Italiana and Germany's XETRA.
Saturna Capital and HANetf partnered earlier in 2021 to launch the Saturna Sustainable ESG Equity HANzero UCITS ETF (SESG), an actively managed, ESG ETF.