HSBC Islamic index

[Zeeshan]

apologies brother @Shaheak_Choudhury as i missed this one - better late then never

@Shaheak_Choudhury

It is an interesting discussion point re: HSBC Islamic fund and their US Tech exposure. A quick Morningstar search suggests that exposure to US in this fund is 73%, and exposure to tech is 33%. If we compare to Vanguard Global All Cap, the comparable %'s are 57% / 20%. If we compare to another popular shariah compliant global index (ISWD), the %s are 50% / 18%.

What you need to note is that HSBC is a large-cap market-weighted growth fund for ~100 companies as it follows the Dow jones 100 titan index whereas Vanguard is the “all cap” index so will be more diversified as you alluded (the problem is that it’s not shariah compliant so go out of the equation

HSBC is a market-weighted index whereas ISWD calculates its financial screening on an asset value and as a result, gives a different tilt to the fund’s constituents. You may find the below discussion useful.

Selecting an ETF

walikum as salam 1. FUND COMPARISON: Overall i like HSBF fund over the Ishares MSCI. Dow Jones Titan 100 Index (HSBC fund) is biased towards US and Tech & Healthcare stocks which have been performing well and I believe both would probably continue to do so for a while in the long run. Though I would expect a short term correction coming to this fund as a result of likely rotation out of tech stocks to the heavily COVID battered stocks as we are seeing the progress on vaccines but I am still po…

Regards
Zeeshan