MSCI Islamic Index Series also uses total assets as the denominator, like FTSE Yasaar, but is stricter on receivables (33.33% vs FTSE's 50%). Used by the iShares MSCI World Islamic UCITS ETF.
What it is
MSCI Inc's Shariah index family. Reviewed by an independent Shariah advisory board and aligned with the broader MSCI methodology family.
How it differs from FTSE Yasaar
Same denominator (total assets), but receivables capped at 33.33% instead of 50%. This means service-heavy and consulting businesses with deferred billing often fail MSCI Islamic where they would pass FTSE Yasaar.
Who uses it
iShares MSCI World Islamic UCITS ETF (ISDW), iShares MSCI USA Islamic ETF (ISUS), and most MSCI Islamic-tracking funds globally.
Financial ratios
- Interest-bearing debt / Total assets< 33.33%
- Cash and interest-bearing securities / Total assets< 33.33%
- Accounts receivable / Total assets< 33.33%
- Non-permissible income / Total revenue< 5%
Who uses it
- iShares MSCI World Islamic UCITS ETF (ISDW)
- iShares MSCI USA Islamic ETF (ISUS)
Sources
- MSCI Islamic Index Methodology Document
- MSCI ESG Research
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