The NEO Exchange welcomed on Wednesday Toronto-based Wealthsimple, who has launched its first Sharia-compliant ETF- Wealthsimple Shariah World Equity Index ETF- designed to replicate the performance of the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index, BetaKit writes.

Wealthsimple exchange-traded fund offers investors access to a diversified index of Shariah-compliant stocks as part of its latest push to offer more Halal financial products. It is NEO’s 100th fund listing.

“We applaud Wealthsimple for providing an investment product that addresses the under-serviced but important Islamic community here in Canada, and are honoured to be their exchange of choice to bring this ETF to market,” said Jos Schmitt, president and CEO of NEO.

Fund’s trustee, ETF manager, and portfolio manager was Mackenzie Investments, a subsidiary of Montréal-headquartered Power Corporation.

Both Mackenzie and Wealthsimple have engaged Shariah advisory firm Ratings Intelligence Partners to review and certify the ETF as compliant and to conduct bi-annual audits. The ETF has a management fee of 0.5%.

Wealthsimple dives deeper into Islamic finance at a time when several other companies sought to tap the growing sector.

“Our mission is to make financial products more affordable and accessible for everyone and we’re thrilled to do just that with the launch of Canada’s first Shariah-compliant ETF. Muslim investors in Canada will now have access to an affordable investment product that is in line with their values,” said Ben Reeves, chief investment officer of Wealthsimple.

Wealthsimple opened its new consumer payment app Wealthsimple Cash for users across Canada tn March and expects to add new features to its Cash product in the coming months.


The NEO Exchange was founded in 2015 and claims to be the third most active marketplace in Canada, representing approximately 13 percent of all volume traded in Canadian-listed securities and almost 100 public listings.