Islamic ETFs adding potential to portfolios

Triggered by rapidly growing demand for Islamic financial instruments, Shariah-compliant exchange-traded funds (Islamic ETFs, or iETFs) are beginning to add potential to the portfolios of Muslim and ethical investors. Malaysia last week came up with the first regional Islamic ETF that will include Shariah-compliant stocks from Malaysia, Singapore, Indonesia, Thailand and the Philippines. It is being launched by investment firm i-VCAP Management. The region is joining the growing number of Islamic ETFs provided by large investment companies. The latest addition to the Islamic ETF family was an iETF launched by Seattle-based investment firm Falah Capital in October last year.