26th January 2022 - 3 min read
Robo advisor Wahed Invest has announced that it will be upgrading several of its diversified portfolios with new asset allocations in a bid better serve its customers.
“In line with our mission to offer high quality investment portfolios to you, we would like to inform you that our diversified portfolios now carry the following allocations,” the robo advisor noted in an email to its investors, sharing further details in the table below:
As you can see, this update will affect five of Wahed Invest’s diversified portfolios, starting from the Moderately Conservative portfolio all the way up to the Very Aggressive portfolio. Meanwhile, the allocations for the Conservative portfolio and six thematic portfolios will remain unchanged.
In comparison with the previous allocation, the new distributions of the affected portfolios will have a heavier emphasis on global stocks. To illustrate, here’s the current and new allocation for the Very Aggressive portfolio:
Existing allocation | New allocation |
65% Global stocks – Wahed FTSE USA Shariah ETF | 86.5% Global stocks – 65% Wahed FTSE USA Shariah ETF – 21.5% Wahed Dow Jones Islamic World ETF |
12.5% Sukuk – RHB Islamic Bond Fund – Malaysia Maybank Sukuk Fund | – |
20% Emerging market stocks – VP-DJ Shariah China A-Shares 100 ETF – MyETF MSCI Malaysia Islamic Dividend | 12.5% Emerging market stocks – VP-DJ Shariah China A-Shares 100 ETF |
2.5% Cash | 1% Cash |
The Moderately Conservative portfolio also shows a similar leaning, as is shown in the comparison below:
Current allocation | New allocation |
12.5% Global stocks – Wahed FTSE USA Shariah ETF | 25% Global stocks – 15% Wahed FTSE USA Shariah ETF – 10% Wahed Dow Jones Islamic World ETF |
75% Sukuk – RHB Islamic Bond Fund – Maybank Malaysia Sukuk Fund | 65% Sukuk – 32.5% RHB Islamic Bond Fund – 32.5% Maybank Malaysia Sukuk Fund |
5% Emerging market stocks – VP-DJ Shariah China A-Shares 100 ETF – MyETF MSCI Malaysia Islamic Dividend | – |
5% TradePlus Shariah Gold Tracker | 5% TradePlus Shariah Gold Tracker |
2.5% Cash | 5% Cash |
This update is clearly Wahed Invest’s effort to accommodate its investors’ growing appetite to diversify into global stocks, as well as to incorporate the new Wahed Dow Jones Islamic World ETF (UMMA) – alongside the Wahed FTSE USA Shariah ETF (HLAL) – as part of its offerings. To note, the Wahed Dow Jones Islamic World ETF was recently launched on NASDAQ in early January 2022. It is described as the first shariah-compliant and ESG-aware ETF to debut on the US stock exchange.
The new allocations for these affected portfolios is set to come into effect by the end of January 2022.
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