What do the terms global sukuk bonds and Islamic screening actually mean?

Sukuk are Sharia-compliant bonds that represent partial ownership in tangible assets rather than debt. SPSK focuses on these global sukuk bonds. UMMA uses Islamic screening for its foreign large growth equities. This means it avoids companies involved in forbidden activities such as interest-based lending or certain industries. These structural differences define the investment universe. The underlying mechanics of each fund differ significantly because one is a debt instrument and the other is a growth-oriented equity strategy.

How do the asset classes of SPSK and UMMA differ from each other?

SPSK sits in the Global Bond category, while UMMA sits in Foreign Large Growth. This means the risk profiles are inherently different. Bond ETFs like SPSK typically aim to generate steady income and provide stability. In contrast, an equity ETF like UMMA focuses on capital growth by holding large global companies. You are essentially comparing a fixed-income strategy against a growth strategy. This is why their performance charts will rarely move in lockstep with each other during different market cycles.

Why do the sector weights and top holdings show as not available?

The provided data indicates that sector weights and detailed portfolio concentration are not available for SPSK. For UMMA, only TSM at 5.49% is listed as a top holding, with other sector weights unavailable. This lack of comprehensive data means investors cannot directly compare the full asset allocation or specific exposure levels. For SPSK, the index tracking methodology is also not available. This limits the ability to conduct a deep, side-by-side analysis of their respective portfolios based on this data alone.

How do the expense ratios of SPSK and UMMA compare in practice?

SPSK has an expense ratio of 0.50%, whereas UMMA is more expensive at 0.65%. That represents a 15 percentage points difference in annual costs. While 0.50% is lower, it is still considered higher than typical global bond ETFs. The 0.65% fee for UMMA is also relatively high for an index-based ETF. Over time, these fees directly reduce net returns to the investor, regardless of how well the underlying markets perform. The absolute cost difference is small, but the percentage difference can compound over years.

Which fund is more established and how does track record matter?

SPSK launched on Dec 30, 2019, providing a longer operational history. UMMA was launched on Jan 7, 2022, making it a newer entrant with a shorter track record. Additionally, SPSK is larger with $670 million in net assets compared to UMMA's $292 million. A longer track record can offer more data points for performance evaluation. However, neither fund's inception date guarantees future results. Larger net assets can sometimes aid in liquidity and bid-ask spreads, but the choice remains independent of these factors.

How do the dividend yields of the two funds differ?

SPSK offers a solid 4.66% dividend yield, potentially appealing for income generation. UMMA has a dividend yield of 0.96%, which is modest. These yields reflect the different natures of the funds. A bond ETF like SPSK often provides a steady stream of income through interest payments. An equity ETF like UMMA generally focuses on capital growth, distributing dividends less aggressively. Investors looking for yield typically find SPSK more appealing, whereas income generation is not the main goal for those seeking growth via Islamic finance.

What investing goals are typically associated with each fund?

SPSK is typically associated with income generation through global sukuk bonds. It is suited for investors prioritising steady distributions over capital appreciation. On the other hand, UMMA targets foreign large growth within an Islamic finance framework. It is aligned with investors seeking capital appreciation from global equities. Neither fund is recommended over the other. However, these differing objectives mean each is positioned to satisfy different portfolio needs, specifically income generation versus capital growth based on market conditions.

How do these funds handle overlapping holdings in the market?

According to the provided data, there are no shared top-10 holdings among the listed top holdings for these funds. SPSK lacks available top holdings, while UMMA only lists TSM at 5.49%. Therefore, their immediate exposure to specific companies does not overlap. This implies that if SPSK holds a specific global company or entity, it is a sukuk issuer, while UMMA holds TSM as an equity. The distinct portfolios ensure that their market movements are driven by separate asset drivers.

What is the exposure difference regarding TSM in UMMA?

UMMA holds significant assets in TSM at 5.49%, which is a major semiconductor firm. This indicates a specific sector tilt towards technology within the fund. Conversely, SPSK has no available sector weights or top holdings, making it impossible to compare TSM exposure. This difference highlights the distinct strategies: SPSK tracks the Dow Jones Global Sukuk Index for global debt, whereas UMMA targets equities with specific sector exposure.

Why does the yield difference matter for beginner investors?

A yield of 4.66% for SPSK versus 0.96% for UMMA can lead to vastly different cash flow experiences. If your goal is to receive distributions from your investment, the bond-based strategy with a higher yield will generate more cash. If your goal is capital appreciation, you might look at the growth fund. Remember that the absolute yield of SPSK is a result of its debt structure and does not imply it is a safer option than the equities in UMMA.

What are the main takeaways when comparing these two funds?

The main takeaway is that these funds offer vastly different types of exposure. SPSK focuses on global sukuk bonds for income, while UMMA targets foreign large growth equities for appreciation. You are not comparing a high-yield product against a low-yield growth product based solely on yields, but different strategies. Investors must align their portfolios with their specific financial goals, whether seeking income via SPSK or capital growth via Islamic finance with UMMA.

SPSK vs UMMA

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

SPSK vs UMMA compares two distinct funds. SPSK focuses on global sukuk bonds, tracking the Dow Jones Global Sukuk Index with a 4.66% yield and 0.50% expense ratio. UMMA targets foreign large growth equities via Islamic screening, featuring TSM as a top holding, a 0.96% yield, and a 0.65% expense ratio. Explore how these ETFs differ in structure, performance, and portfolio composition. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPSK

Metric

UMMA

0.50%

Expense Ratio

0.65%

4.66%

Dividend Yield

0.96%

$669.54M

Net Assets

$291.74M

175

Holdings

100

Dec 30, 2019

Inception Date

Jan 7, 2022

–

Index Tracked

–

Global Bond

Fund Category

Foreign Large Growth

SPSK costs about $15.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SPSK

Pros

SPSK offers a solid 4.66% dividend yield, potentially appealing for income generation.
With $670 million in net assets, it is larger and more established than UMMA.
Launched in late 2019, it provides a longer track record for investors.

Considerations

The expense ratio of 0.50% is higher than typical global bond ETFs.
Its specific index tracking methodology and top holdings details are not available.
Sector weights and detailed portfolio concentration data are currently not available.

UMMA

Pros

UMMA focuses on foreign large growth, offering exposure to global equities.
It holds significant assets in a major semiconductor firm, indicating a specific sector tilt.
Despite a modest yield, it targets growth within Islamic finance frameworks.

Considerations

The 0.65% expense ratio is relatively high for an index-based ETF.
With only $292 million in net assets, it is smaller and newer than SPSK.
Its dividend yield of 0.96% is low, which may not suit income investors.

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About SPSK and UMMA

SPSK (SPSK)

The SP Funds Dow Jones Global Sukuk ETF (SPSK) provides investors with diversified exposure to global sukuk — financial certificates structured to comply with Shariah principles. The ETF offers an income-oriented, Shariah-compliant alternative to conventional bond funds by investing across issuers, sectors and regions where sukuk are issued. Investors should be aware that sukuk carry credit, interest-rate and currency risks; liquidity can vary by market and some issues may be less frequently traded. Performance can be affected by issuer creditworthiness, macroeconomic conditions and changes in global rates. Fees, tax treatment and tracking error versus the underlying index can also influence returns. This information is educational and not personal advice: suitability depends on your income needs, risk tolerance and investment horizon, and capital can fall as well as rise — consider consulting a qualified financial adviser before investing.

UMMA (UMMA)

Wahed Dow Jones Islamic World ETF (UMMA) is a passively managed exchange-traded fund that aims to track the Dow Jones Islamic Market World Index, offering diversified exposure to global equities that meet Shariah principles. It seeks to exclude businesses involved in interest-bearing activities, alcohol, gambling, and other sectors inconsistent with Islamic investing. As an ETF, UMMA trades like a stock on an exchange, providing intraday liquidity and potentially lower costs versus actively managed alternatives. Investors should be aware that performance will follow the underlying index and is not guaranteed; values can rise or fall and currency movements may affect returns. Market-cap data may not be applicable to the fund itself. This summary is educational only and not personal financial advice — suitability depends on individual circumstances, investment horizon and attitude to risk.

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SPSK vs UMMA

Fund Snapshot

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Investment Analysis

SPSK

Pros

Considerations

UMMA

Pros

Considerations

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About SPSK and UMMA

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Buy SPSK or UMMA in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What do the terms global sukuk bonds and Islamic screening actually mean?

How do the asset classes of SPSK and UMMA differ from each other?

Why do the sector weights and top holdings show as not available?

How do the expense ratios of SPSK and UMMA compare in practice?

Which fund is more established and how does track record matter?

How do the dividend yields of the two funds differ?

What investing goals are typically associated with each fund?

How do these funds handle overlapping holdings in the market?

What is the exposure difference regarding TSM in UMMA?

Why does the yield difference matter for beginner investors?

What are the main takeaways when comparing these two funds?

Fund Snapshot

About SPSK and UMMA

Which Baskets Do They Appear In?

Islamic Finance Leaders

Which Baskets Do They Appear In?

Islamic Finance Leaders

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