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Two exchange-traded funds tracking US equities will be a first for the Persian Gulf’s growing ETF industry as Abu Dhabi’s Chimera Capital LLC expands its products.
The company will list Chimera S&P US Shariah Value ETF, a vehicle that will track the performance of the S&P High Yield Dividend Aristocrats U.S. Shariah Top 30 35/20 Capped Index. The gauge includes stocks such as Johnson & Johnson, Procter & Gamble Co., and Exxon Mobil Corp.
Chimera will also launch Chimera S&P US Shariah Growth ETF, which will track the performance of the S&P 500 U.S. Shariah Top 30 35/20 Capped Index. This gauge tracks the performance of thirty of the biggest and most liquid Shariah-compliant constituents of the S&P 500, including companies such as Apple Inc., Tesla Inc., and Amazon.com Inc.
US equities have tumbled this year as the Federal Reserve embarked on a path to raise interest rates to tame soaring inflation, amplifying fears of a recession. About $16.8 billion exited global stock funds in the week through June 22, with US equities seeing their first outflow in seven weeks at $17.4 billion, Bank of America Corp. said, citing EPFR Global data.
The two new ETFs will start trading on Friday in Abu Dhabi. They are the latest additions to the Chimera Umbrella Fund, which already had three other Shariah-compliant ETFs. BNY Mellon will be the funds’ global custodian, and International Securities, EFG-Hermes, Arqaam Capital, Daman Securities and BHM Capital were all authorized participants.
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