Launch Partners

Tuesday, October 4, 2022

Launch Partners

Fund Focus: ETFB Green SRI REITs ETF

In this article, we take a look at ETFB Green SRI REITs ETF (RITA), possibly the first Islamic sustainable and responsible investment (SRI) exchange-traded fund (ETF), which was launched on the NYSE Arca electronic exchange in the US.

Launched on the 7th December 2021, RITA tracks the performance, before fees and expenses, of the FTSE EPRA Nareit IdealRatings Developed REITs Islamic Green Capped Index.

The index is composed of a portfolio of exchange-listed REITs in developed markets meeting the business, SRI and green investing criteria determined by IdealRatings.

The fund will invest at least 80% of its net assets in REITs that meet the index’s SRI screening and green screening criteria as of the most recent reconstitution of the index.

RITA tracks REITs that screen out real estate operators generating more than 5% of revenues from tenants that violate Islamic laws or do not have accreditations from a third-party environmental certification group.

The FTSE Russell index also rebalances every quarter and reweights based on market capitalization and a modeled score of each REIT’s building energy efficiency.

ETFGI reported that actively managed ETFs and ETPs (exchange-traded products) gathered net inflows of US$10.36 billion during October 2021, bringing year-to-date net inflows to US$120.28 billion.

Meanwhile, assets invested in actively managed ETFs/ETPs finished the month up to 5.1%, from US$418 billion at the end of September to US$439 billion, according to ETFGI’s October 2021 ‘Active ETF and ETP industry landscape insights’ report.

“Due to strong corporate earnings, the S&P 500 gained 7.01% in October and is up 24.04% year to date. Developed markets ex-US experienced gains of 2.5% in October,” said Deborah Fuhr, the managing partner, founder and owner of ETFGI.

RITA follows the launch of the Saturna Al-Kawthar Global Focused Equity UCITS ETF in November 2021.

The opinions and viewpoints expressed in the Fund Focus do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.

Table 1: Fund fact sheet
Name of the fundETFB Green SRI REITs ETF
Launch date7th December 2021
Fund managerExchange Traded Concepts
Fund categoryEquity (Shariah compliant)
Fund domicileThe US
Targeted sizeN/A
Investment objectiveThe ETFB Green SRI REITs ETF seeks to track the performance, before fees and expenses, of the FTSE EPRA Nareit IdealRatings Developed REITs Islamic Green Capped Index.
Asset allocationThe fund invests in a portfolio of exchange-listed REITs in developed markets meeting the business, financial, sustainable and responsible investment, and green investing criteria determined by IdealRatings.
Geographical exposureThe US
Targeted yieldN/A
Investor typeAll investors
Base currencyUS dollar
Risk levelN/A
BenchmarkFTSE EPRA Nareit IdealRatings Developed REITs Islamic Green Capped Index

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