FTSE Russell Factsheet

FTSE USA Shariah Index

Data as at: 31 December 2020
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The FTSE Global Equity Shariah Index Series has been designed to be used as the basis of FEATURES
Shariah compliant investment products that meet the requirements of Islamic investors globally.
Using the Large and Mid Cap stocks from the FTSE Global Equity Index Series as a base Coverage
universe, constituents are then screened against a clear set of Shariah principles. Shariah The FTSE Global Equity Shariah Index Series
screening is undertaken by Yasaar Limited, to create a Shariah compliant index series. The series covers all regions across both developed and
has been fully certified as Shariah-compliant through the issue of a Fatwa (Islamic legal opinion)
emerging markets, to create a
by Yasaar's principals.
comprehensive Shariah indexing solution.

The FTSE USA Shariah Index contains USA stocks that meet these criteria. Their approach is Impartial
described below. By partnering with Yasaar Ltd, an impartial
consultancy and leading authority on
Business Activity Screening Shariah, FTSE remains neutral and fully up
Initially, companies involved in any of the following activities will be filtered out as non Shariah- to date with latest practices. See
compliant: www.yasaar.org for more information.

Fatwa-certified
• Conventional finance (non-Islamic banking, finance and insurance, etc.);
• Alcohol; The FTSE USA Shariah Index has been fully
• Pork related products and non-halal food production, packaging and processing or any other certified as Shariah-compliant through the
activity related to pork and non-halal food; issue of a Fata (Islamic legal opinon) by
• Entertainment (casinos, gambling and pornography); Yasaar's principals.
• Tobacco; weapons, arms and defence manufacturing.
Asset-based debt screening

Unlike other competitor methodologies, a

more conservative approach to Shariah
Financial Ratios Screening
compliance is ensured by rating debt ratio
The remaining companies are then further screened on a financial basis. The following financial
limits that are measured as a percentage of
ratios must be met for companies to be considered Shariah-compliant:
total assets, rather than more volatile
measures that use 12 month trailing market
• Debt is less than 33.333% of total assets;
• Cash and interest bearing items are less than 33.333% of total assets; capitalisation. This ensures companies do
• Accounts receivable and cash are less than 50% of total assets; not pass the screening criteria due to market
• Total interest and non compliant activities income should not exceed 5% of total revenue. price fluctuation, allowing the methodology
to be less speculative and more in keeping
with Shariah principles.

School-neutral

Yasaar Limited scholars represent all of the

major Shariah schools of thought, creating a
best practices approach that has credibility
across the Islamic world.

Industry Classification Benchmark

(ICB)

Index constituents are categorised in

accordance with the Industry Classification
Benchmark (ICB), the global standard for
industry sector analysis.

Source: FTSE Russell as at 31 December 2020. Past performance is no guarantee of future results. 1 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
FTSE USA Shariah Index Data as at: 31 December 2020

10-Year Performance - Total Return INFORMATION

(USD)

400
Index Universe
350 FTSE USA Index
300
Index Launch
250
200 29 October 2007
150
Base Date
100
22 September 2003
50
Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Base Value
Data as at month end

988.63
FTSE USA Shariah FTSE USA
Investability Screen

Actual free float applied and liquidity

Performance and Volatility - Total Return screened
Index (USD) Return % Return pa %* Volatility %** Index Calculation
3M 6M YTD 12M 3YR 5YR 3YR 5YR 1YR 3YR 5YR
Index calculated real time and end-of-day
FTSE USA Shariah 13.7 28.2 25.5 25.5 54.0 101.0 15.5 15.0 34.5 20.8 16.6
End-of-Day-Distribution
FTSE USA 12.9 23.7 20.8 20.8 51.8 107.3 14.9 15.7 34.1 20.3 15.6
Via FTP and email
* Compound annual returns measured over 3 and 5 years respectively
** Volatility – 1YR based on 12 months daily data. 3YR based on weekly data (Wednesday to Wednesday). 5YR based on monthly data Review Dates

Year-on-Year Performance - Total Return Index is reviewed semi-annually in March

Index % (USD) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 and September. Shariah screening reviewed

FTSE USA Shariah 3.6 13.1 29.7 13.0 -3.7 10.2 18.5 -5.7 30.2 25.5
quarterly in March, June, September and

FTSE USA 1.7 16.3 32.8 13.3 1.0 11.8 22.1 -4.5 31.6 20.8
December

Currency
Return/Risk Ratio and Drawdown - Total Return
EUR, GBP, USD, JPY
Index (USD) Return/Risk Ratio Drawdown (%)

1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR

FTSE USA Shariah 0.7 0.7 0.9 0.9 -34.1 -34.1 -34.1 -34.1

FTSE USA 0.6 0.7 1.0 1.0 -34.1 -34.1 -34.1 -34.1

Return/Risk Ratio – based on compound annual returns and volatility in Performance and Volatility table
Drawdown - based on daily data

Top 10 Constituents - USA Shariah

Constituent ICB Sector FTSE USA Shariah (Wgt %) FTSE USA (Wgt %) Diff %
Apple Inc. Technology Hardware & Equipment 17.67 6.46 11.21

Tesla Automobiles & Parts 4.40 1.61 2.79

Johnson & Johnson Pharmaceuticals & Biotechnology 3.42 1.25 2.17

Procter & Gamble Household Goods & Home Construction 2.80 1.02 1.78

Home Depot General Retailers 2.35 0.86 1.49

Adobe Software & Computer Services 1.99 0.73 1.26

Merck & Co Pharmaceuticals & Biotechnology 1.71 0.62 1.09

Pfizer Pharmaceuticals & Biotechnology 1.69 0.62 1.07

Intel Corp Technology Hardware & Equipment 1.69 0.62 1.07

Salesforce.com Software & Computer Services 1.61 0.59 1.02

Totals 39.33 14.38

Source: FTSE Russell as at 31 December 2020. Past performance is no guarantee of future results. 2 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
FTSE USA Shariah Index Data as at: 31 December 2020

ICB Supersector Breakdown

FTSE USA Shariah FTSE USA

ICB Code ICB Supersector No. of Cons Wgt % No. of Cons Wgt % Diff %

0500 Oil & Gas 12 4.41 21 2.13 2.28

1300 Chemicals 10 3.14 13 1.31 1.84

1700 Basic Resources 7 1.34 7 0.49 0.85

2300 Construction & Materials 4 0.71 7 0.58 0.13

2700 Industrial Goods & Services 38 8.18 87 10.82 -2.64

3300 Automobiles & Parts 8 5.19 10 2.16 3.03

3500 Food & Beverage 7 1.73 25 2.70 -0.97

3700 Personal & Household Goods 17 6.70 27 3.93 2.76

4500 Health Care 36 20.93 65 12.51 8.42

5300 Retail 19 8.49 32 9.32 -0.83

5500 Media 7 0.77 26 3.45 -2.68

5700 Travel & Leisure 2 0.08 23 2.12 -2.04

6500 Telecommunications 1 0.61 4 1.61 -1.00

7500 Utilities 7 1.26 30 2.66 -1.40

8300 Banks - - 20 3.79 -3.79

8500 Insurance - - 30 3.29 -3.29

8600 Real Estate 3 1.19 39 2.74 -1.55

8700 Financial Services - - 32 5.40 -5.40

9500 Technology 37 35.27 86 28.99 6.28

Totals 215 100.00 584 100.00

Index Characteristics
Attributes FTSE USA Shariah FTSE USA
Number of constituents 215 584

Net MCap (USDm) 12,100,958 33,087,069

Dividend Yield % 1.53 1.52

Constituent Sizes (Net MCap USDm)

Average 56,284 56,656

Largest 2,138,262 2,138,262

Smallest 957 957

Median 22,210 22,624

Weight of Largest Constituent (%) 17.67 6.46

Top 10 Holdings (% Index MCap) 39.33 25.90

31 Decem ber 2020

Source: FTSE Russell as at 31 December 2020. Past performance is no guarantee of future results. 3 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
FTSE USA Shariah Index Data as at: 31 December 2020

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Source: FTSE Russell as at 31 December 2020. Past performance is no guarantee of future results. 4 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.