This is an internationally diversified ETF that tracks large- and mid-cap stocks in developed and emerging markets outside the US that pass Shariah investment screening. It meets demand from investors who want to separate out US market exposure and hold only the global ex-US segment.

It suits long-term investors who want to diversify across global markets outside the US using Shariah-compliant criteria.

It is a passively managed (index-tracking) ETF run by SP Funds.

The fund holds large- and mid-cap stocks in developed and emerging markets outside the US that pass Shariah screening, weighted according to the index. It selects holdings by excluding non-compliant industries such as financials, alcohol, and gambling and by applying financial criteria such as debt ratios, and it updates its constituents on a regular basis.

• Separate exposure to only the global ex-US segment
• Stock selection based on Shariah-compliant criteria

Assets under management (AUM) stand at $235.8M, and the expense ratio is 0.55% per year.

Because of the structural difference of Shariah-compliant screening relative to comparable international equity ETFs, its holdings and sector breakdown may differ from those of a typical international ETF.

The fund moves with global equity markets outside the US and with currency fluctuations. Because it holds both developed and emerging markets, performance volatility may arise from differences in economic conditions across regions. Recent trends are influenced by global risk appetite and the strength or weakness of the dollar.

Demand for diversification away from US concentration and demand for Shariah-compliant investing underlie its fund flows. As a relatively new ETF, its asset base is smaller than that of comparable large international ETFs, and inflows and outflows may fluctuate with market conditions.

Its strengths are global diversification outside the US and Shariah-compliant screening, while its drawbacks are a small asset base and a relatively high expense ratio.

As an international diversification vehicle excluding the US, broad international equity ETFs such as FNDF and GSIE shown in the table serve as comparison points. They are core products with larger asset bases and lower expense ratios, without Shariah screening. International ETFs focused on specific themes such as global infrastructure, like IGF, have a different diversification profile. For the same Shariah-compliant character, SPUS, centered on US large caps, and SPRE, centered on US real estate, are alternatives worth considering together, as they come from the same fund family.

Here are the points to review before investing in SPWO. Given its ex-US diversification and Shariah-compliant screening, it is wise to check costs, asset size, and regional exposure in advance.

The main risks are liquidity constraints from its small asset base and currency and regional volatility from exposure to non-US currencies and emerging markets. During market corrections, the emerging-market weighting could amplify short-term losses.

It is a suitable choice for investors who want to implement global diversification outside the US under Shariah-compliant criteria. If cost and scale matter most, a standard international ETF may be preferable, and if you want to expand a Shariah-compliant lineup, you can consider SPWO alongside it.