New frontiers for Islamic finance

Exchange-traded fund volumes have grown dramatically in Asia in the past couple of years as investors have used them to access new markets and underlyings. Now Islamic ETFs are being readied to hit the market, including Ucits III-compliant funds.

kuala-lumpur
EasyETFs make inroads into Malaysia

Total assets invested in Asia ex-Japan exchange-traded funds (ETFs) hit $55.1 billion in October 2010, with the number of ETFs totalling 188 with 293 listings, according to iShares. To date, this growth momentum has yet to benefit the Islamic sector, with just three Islamic ETFs listed on Asian bourses. These three Islamic ETFs - listed in Malaysia, Singapore and India - have attracted $217 million in assets, or just 0.4% of the total market.

However, this may be about to change. Islamic ETF

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