Complex Made Simple

Sharia portfolios, superior performance

There are more than 1,000 mutual funds & ETFs in the sharia space. Sharia portfolios outperform conventional peers, by a large amount. More profit. Less risk

The sharia portfolio was much more profitable than all comparisons You can see during downturns it always falls less, recovers faster When looking at risk versus reward, sharia again dominates:

By: Dr. John A. Sandwick- Safa Investment Services

There are more than 1,000 mutual funds & ETFs in the sharia space.  We examine every one of them, rejecting any that are too small, not liquid, or difficult to purchase.

Then we examine the winners, creating a ‘Buy List’ from the best of them.  These are then subjected to cross-examination and manager interviews.

We create optimized portfolios from the Buy List. Below is a Growth investment strategy:

Then we benchmark:  30% Dow Jones Sukuk and 70% Dow Jones Global Markets total return.  We add two Swiss comparisons and two American ones.

How did they perform?

The sharia portfolio was much more profitable than all comparisons. You can see during downturns it always falls less, recovers faster. That means more profit.

Look at risk versus reward, where sharia again dominates:

The sharia portfolio recovered from the coronavirus crash almost twice as fast as the average recovery among the comparisons (= less risk).

Disclaimer

Safa is an investment brand created in 2012 by me and others. It involves building portfolios from the universe of sharia-compliant investible mutual funds and ETFs which tries to replicate precisely the processes and methods common in the asset management industry. Safa’s research is supported by my doctorate in this subject, which was recently published in a leading academic journal and will soon be available in an academic book.

However, no investor should make investment decisions without advice and guidance from a professional. Regulated investment companies exist to help investors seek the best investment options for them. And, of course, investing is not without risk. While we know from experience that diversified portfolios will generally produce positive results over long time periods, there will always be times when markets fall. Be careful!