The Pakistan Stock Exchange (PSX) has introduced the Shariah-compliant Mahaana Islamic Index Exchange Traded Fund (MIIETF) and made its units available for trade by the general public.
In a statement issued by PSX, the ETF aims to track the performance of the Mahaana Islamic Index (MII30), which will be periodically rebalanced and reconstituted to provide long-term appreciation and dividend yield to investors.
The index is designed to measure the performance of the top 30 Shariah-compliant companies selected from KMI All Share Index constituents based on free float market capitalisation, with an average daily value traded of at least Rs10 million in the last 12 months. The ETF is managed by Mahaana Wealth Limited (MWL).
Speaking at the occasion of listing the ETF, Managing Director and Chief Executive Officer PSX, Farrukh H Khan said this is the second Islamic Equity ETF, giving Shariah-conscious investors the opportunity to invest in the top 30 most liquid Shariah-compliant companies through this ETF. Including conventional ones, this is the ninth ETF launched at PSX so far.
Read: Shariah-compliant counter at PSX
JS Global Capital has been appointed as the authorized participant and market maker of the latest ETF.
The new ETF will be a valuable addition to the dividend and long-term appreciation focused options available in the market. With a widening range of ETFs to choose from, investors are encouraged to invest in ETFs.
Mahaana Wealth Limited, Co-Founder and CEO, Muhammad Shamoon Tariq said the ETF provides diversified exposure to the Pakistani stock market, accessible to retail investors through their brokerage accounts at a much lower cost compared to existing options in the market.
Published in The Express Tribune, March 14th, 2024.
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