Wahed Dow Jones Islamic World ETF (UMMA): Global Islamic Equity

If you're a US-based Muslim investor and you've figured out that SPUS or HLAL handle your US exposure, the next question is: what about international? Halal options for ex-US equity exposure are genuinely limited on US exchanges, and UMMA is the most prominent answer that actually exists.

Let's actually look at whether UMMA is a good solution or just the least-bad one.

The UMMA Basics

UMMA is the Wahed Dow Jones Islamic World ETF, launched in January 2022 by Wahed Invest. It trades on Nasdaq and is designed specifically to give US investors halal international exposure without needing to deal with UCITS ETFs or international brokerage accounts.

The fund tracks the Dow Jones Islamic Market International Titans 100 Index, which is the ex-US version of Dow Jones's global Islamic indexes. The index methodology screens large and mid-cap stocks from developed and emerging markets outside the US using standard Shariah criteria.

Index Methodology

Dow Jones Islamic Market indexes apply standard Shariah screens:

Business activity screens exclude: conventional financial services, alcohol, pork, tobacco, weapons, gambling, adult entertainment, and interest-based entertainment like hotels.

Financial ratio screens use the 33 percent rule: total debt divided by 24-month average market cap must be below 33 percent, cash plus interest-bearing securities divided by 24-month average market cap must be below 33 percent, and accounts receivable divided by 24-month average market cap must be below 33 percent.

Dow Jones uses trailing 24-month average market cap as the denominator (rather than current market cap), which makes the screening more stable during volatile market periods. This is similar to but not identical to MSCI Islamic or FTSE Shariah methodologies.

The International Titans 100 variation picks the 100 largest companies from this screened universe that are domiciled outside the US. Annual rebalancing with quarterly reviews.

What UMMA Holds

UMMA typically holds around 100 names from the international halal universe. Top holdings are usually dominated by European and Asian large caps that pass screening.

Representative holdings include: Novo Nordisk (Danish healthcare), ASML (Dutch semiconductor equipment), Taiwan Semiconductor, Samsung Electronics, Roche (Swiss pharma), AstraZeneca (UK/Swedish pharma), Toyota Motor (Japan), Nestle (Switzerland, when it passes screens), Reliance Industries (India), and LVMH (France, when it passes screens which varies by quarter).

Country breakdown typically looks like: 15 to 18 percent Japan, 10 to 13 percent UK, 9 to 12 percent Switzerland, 8 to 11 percent France, 7 to 10 percent Taiwan, 6 to 9 percent India, 5 to 7 percent South Korea, 4 to 6 percent Denmark, 3 to 5 percent Saudi Arabia, and smaller slices in Netherlands, Germany, Australia, Canada, and others.

Sector breakdown is roughly: 25 to 32 percent healthcare, 20 to 28 percent technology, 10 to 14 percent consumer discretionary, 8 to 12 percent industrials, with smaller slices in materials, energy, and communication services.

Notice the emphasis on healthcare. European pharmaceutical names (Novo Nordisk, Roche, AstraZeneca, Sanofi, Novartis) tend to dominate because they pass Islamic screens easily and are some of the largest healthcare companies globally.

Expense Ratio: 0.65 Percent

UMMA charges 0.65 percent per year. That's higher than SPUS (0.49) or HLAL (0.50), but international ETFs typically cost more than US-only ETFs regardless of screening, because of custody and foreign exchange overhead.

For comparison, non-halal international ETFs like VXUS (Vanguard Total International) charge 0.05 percent, and EFA (iShares MSCI EAFE) charges 0.32 percent. So UMMA is running about 13 times more expensive than Vanguard and about double EFA. The halal premium on international exposure is larger than on US exposure because the base international ETF market is more competitive.

AUM: Around 150 to 200 Million Dollars

UMMA is much smaller than SPUS or HLAL. Assets are approximately 150 to 200 million dollars as of early 2026. That's small for an ETF, and the liquidity reflects it: bid-ask spreads are typically 5 to 10 cents, meaningfully wider than SPUS or HLAL.

Why so small? A few reasons. Muslims in the US have been slower to diversify into international exposure. Many halal investors who want international diversification have been using US-listed ADRs of specific foreign companies instead of a fund. And UMMA is newer (launched 2022) so it hasn't had as much time to accumulate assets.

Performance Estimates

UMMA has only been around since January 2022, so long-term performance data doesn't exist. Here are the shorter-term estimates.

One-year total return: approximately 12 to 16 percent in USD. International developed markets generally performed well in 2025 but lagged US tech.

Three-year annualized (since inception): approximately 6 to 10 percent. The fund launched right before the 2022 bear market, which hurt early returns. Recovery has been steady but less dramatic than US-focused funds.

There's no five-year or ten-year data because the fund is too young.

Currency Exposure

Because UMMA holds stocks from many non-US countries, you're exposed to multiple currencies: JPY, GBP, CHF, EUR, TWD, INR, KRW, DKK, and others. The fund doesn't hedge currency back to USD.

When the US dollar strengthens, your non-US holdings translate to fewer dollars. When the dollar weakens, the reverse. Over multi-year periods, currency effects partially average out, but in any given year they can add or subtract 3 to 8 percent from your returns.

For most long-term investors, unhedged international exposure is considered diversification (you own a basket of currencies in addition to USD). For investors worried about dollar strength, currency-hedged alternatives don't really exist in the halal space, so UMMA is what you have.

Dividend Yield

UMMA's current distribution yield is approximately 1.5 to 2.2 percent, higher than US-focused halal ETFs because international dividend yields are typically higher than US dividend yields. European companies in particular tend to pay higher dividends than US companies.

Quarterly distributions. Standard purification guidance applies; the amount is small but present.

Comparison to ISDW

For investors who can access UCITS ETFs, ISDW (iShares MSCI World Islamic) is broader than UMMA because MSCI World includes US stocks, while UMMA is ex-US only. If you can buy ISDW, you don't necessarily need UMMA because ISDW already gives you global exposure including US.

But US-listed investors typically can't buy ISDW, so UMMA serves a different role: the ex-US complement to SPUS or HLAL.

If you want global halal exposure while using US brokerages, the combination is typically SPUS (for US) plus UMMA (for international). That's a two-fund halal equity portfolio that gives you roughly global market exposure with Islamic screening.

The Saudi and Emerging Markets Question

UMMA includes some emerging markets exposure through Saudi Arabia, India, Taiwan, South Korea, and smaller emerging market names. That's different from developed-markets-only funds like ISDW which primarily holds developed market stocks.

For investors who want emerging markets specifically, UMMA provides some exposure but not a pure EM allocation. If you want more emerging markets, you'd need to layer in additional exposure through ETFs that specifically target that universe.

Tax Considerations

UMMA is organized as a US-listed ETF, so tax reporting is straightforward from a US perspective. Distributions are reported on 1099-DIV. The underlying foreign holdings may have had foreign tax withheld, and you may be eligible for the Foreign Tax Credit when filing your return.

For foreign tax credit optimization, holding UMMA in a taxable account is better than holding it in a tax-deferred account (where you can't claim the credit). That's a small optimization but worth knowing.

Who UMMA Makes Sense For

US-based Muslim investors who want international halal equity exposure as a complement to their SPUS or HLAL holdings. Investors building a globally diversified halal portfolio who don't have access to UCITS ETFs. People who want emerging markets exposure (partial) as part of their international allocation.

Who Should Look Elsewhere

Investors with UCITS ETF access who can buy ISDW at lower cost. Muslims who want pure emerging markets exposure (UMMA is mostly developed markets with some EM). Those who prefer picking individual ADRs of international halal-compliant companies rather than a fund. Investors concerned about the small AUM and wider spreads.

The Two-Fund Halal Portfolio

Here's a practical application. A simple halal equity portfolio for a US-based investor could be:

• 65 to 70 percent SPUS or HLAL (US exposure, roughly proportional to US weight in global markets)
• 30 to 35 percent UMMA (international exposure)

That gives you global halal equity diversification with two funds and a blended expense ratio of about 0.55 percent. It's simple enough to explain to a family member and broad enough to serve as a legitimate long-term allocation.

Add a sukuk fund for fixed income and you have a complete halal portfolio with three tickers.

Bottom Line

UMMA isn't perfect. The expense ratio is on the higher end, the AUM is modest, the bid-ask spreads are wider than SPUS or HLAL, and currency exposure creates volatility that some investors don't want. But it's the best US-listed ex-US halal equity ETF available in 2026, and if you want global diversification in your halal portfolio without using UCITS products, it's your main option.

For Muslim investors in the US who have outgrown a US-only allocation and want real international exposure, UMMA is the pragmatic choice. It does what it says, it's run by a credible firm (Wahed), and it's the key puzzle piece for a complete global halal portfolio accessible to US investors.