HSBC AM launches first sukuk ETF in Europe

Islamic bond exposure

HSBC Asset Management has launched Europe’s first sukuk ETF, providing exposure to Islamic bonds globally.

The HSBC Global Sukuk UCITS ETF launched today (12 September) as a new ETF class of an existing fund that was launched in January 2023. Sukuks are used to circumvent the interest-paying bond structure prohibited under Shariah law, with issuance reaching $193.9bn in 2022, according to data from Refinitiv. With a total expense ratio of 0.7%, the ETF tracks the FTSE IdealRatings Investment Grade index, incorporating over 150 Shariah standards. The index is subject to oversight by a team of Shariah scholars and designed to meet Accounting and Auditing Organization for Islamic Financial...