1

I'm looking to purchase some specific ETFs:

  • iShares MSCI World Islamic ETF (ISWD)
  • db X-trackers DJ Islamic Market Titans 100 UCITS ETF (XMIT)
  • iShares MSCI USA Islamic ETF (ISUS)
  • db X-trackers S&P 500 Shariah UCITS ETF (XSHU)
  • db X-trackers S&P Europe 350 Shariah UCITS ETF (XSHE)
  • db X-trackers S&P Japan 500 Shariah UCITS ETF (XSHJ)
  • iShares MSCI Emerging Markets Islamic ETF (ISEM)

I am a first-time investor and am having difficulty finding where I can invest in them. I opened up a Merill Edge account, but they don't seem to offer any of these ETFs. Googling around doesn't seem to be of much use. As far as I can tell, these ETFs are on the London Stock Exchange. I'm based in the United States.

Any ideas?

Thanks!

3

Some of the ETFs you have specified have been delisted and are no longer trading. If you want to invest in those specific ETFs, you need to find a broker that will let you buy European equities such as those ETFs. Since you mentioned Merrill Edge, a discount broking platform, you could also consider Interactive Brokers since they do offer trading on the London Stock Exchange. There are plenty more though. Beware that you are now introducing a foreign exchange risk into your investment too and that taxation of capital returns/dividends may be quite different from a standard US-listed ETF.

In the US, there are no Islamic or Shariah focussed ETFs or ETNs listed. There was an ETF (JVS) that traded from 2009-2010 but this had such little volume and interest, the fees probably didn't cover the listing expenses. It's just not a popular theme for North American listings.

  • Thank you for the reply. Yeah, I noticed some are no longer trading. There is a relatively new Shariah compliant ETF in the US by Falah Capital but otherwise than that, you are right -- all the other ETFs are based in Europe. Best we have here is Amana Fund which is a mutual fund with relatively high fee. – user3210369 Mar 19 '16 at 19:31
  • Is there any way to find out which specific brokers allow to purchase the ETFs I'm interested in? Merill made it fairly hard -- I had to signup for an account before I could see what ETFs they had available. – user3210369 Mar 19 '16 at 19:32
  • Call or email the broker and ask. If you don't like the answer try another broker. Lather, rinse, repeat if desired. – keshlam Apr 19 '16 at 1:04
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ETFs trade on specific exchanges. If your broker deals with those exchanges, you should have access to the ETF. If your broker does not deal with that exchange, then you will not have access through that broker. This is different than, say, mutual funds, which don't trade on the exchanges are proprietary to certain brokerages or financial institutions.

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