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UMMA - ETF AI Analysis

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UMMA

Wahed Dow Jones Islamic World ETF (UMMA)

Rating:60Neutral
Price Target:
UMMA, the Wahed Dow Jones Islamic World ETF, has a solid overall rating driven largely by high-quality leaders like TSMC and ASML, which benefit from strong financial performance and important roles in advanced technology and AI. Healthcare giants such as AstraZeneca and Novartis also support the fund with strong earnings and product pipelines, though some holdings show signs of high valuations and potential overbought conditions. The main risk factor is the fund’s meaningful exposure to a relatively small group of tech and healthcare names, which can increase sensitivity to sector-specific downturns.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and in recent months, indicating positive momentum.
Leading Semiconductor and Tech Exposure
Top holdings like TSMC, ASML, and Infineon have shown strong performance, helping drive the fund’s returns.
Broad Global Diversification
Holdings spread across major markets such as the U.S., Japan, Europe, and Australia help reduce reliance on any single country.
Negative Factors
Above-Average Expense Ratio
The fund’s fee is relatively high for an ETF, which can eat into long-term returns compared with lower-cost options.
Concentration in a Few Large Positions
A small number of top holdings make up a meaningful share of the portfolio, increasing the impact if any of these companies stumble.
Mixed Performance Among Top Holdings
Some major positions, such as Roche, Nestlé, and SAP, have shown weaker or negative performance, which can drag on overall results.

UMMA vs. SPDR S&P 500 ETF (SPY)

UMMA Summary

The Wahed Dow Jones Islamic World ETF (UMMA) is a global fund that invests in large, Shariah-compliant companies while avoiding businesses that do not meet Islamic ethical rules. It does not track a standard index, but follows an Islamic world theme and holds well-known names like TSMC and Nestlé across many countries and sectors, including technology, health care, and consumer goods. Someone might invest in UMMA to seek long-term growth while aligning with faith-based or ethical values and gaining worldwide diversification. A key risk is that its stock prices can go up and down with global markets and it is fairly concentrated in tech-related companies.
How much will it cost me?The Wahed Dow Jones Islamic World ETF (UMMA) has an expense ratio of 0.65%, which means you’ll pay $6.50 per year for every $1,000 invested. This is higher than average because it is actively managed to ensure compliance with Shariah principles, requiring additional research and screening. It’s a good option for investors seeking ethical and faith-based investments.
What would affect this ETF?The Wahed Dow Jones Islamic World ETF (UMMA) could benefit from growth in the technology and healthcare sectors, which make up a significant portion of its holdings, especially as global demand for innovation and medical advancements continues to rise. However, potential risks include economic slowdowns or regulatory changes in key regions outside the U.S., as well as fluctuations in large-cap company performance, which could impact the ETF's returns. Additionally, its focus on Shariah compliance may limit exposure to certain industries, potentially affecting diversification during market shifts.

UMMA Top 10 Holdings

UMMA leans heavily on global tech, with Taiwan’s TSMC and Europe’s ASML and Infineon acting as the fund’s main engines; all three have been rising, riding the semiconductor and AI wave and giving the ETF much of its recent spark. On the other side, defensive names like Nestlé and big pharma players such as AstraZeneca and Roche have been more mixed to lagging, softening overall momentum. With a clear tilt toward non-U.S. large-cap tech and healthcare, this Shariah-compliant fund is very much a global ex-U.S. story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
TSMC10.63%$29.30M$1.89T101.41%
81
Outperform
7.68%$21.17M
6.66%$18.36M
ASML Holding NV5.97%$16.47M€576.19B118.37%
76
Outperform
Infineon Technologies AG4.15%$11.44M€98.46B114.14%
67
Neutral
Murata Manufacturing Co2.84%$7.82M¥17.88T269.94%
77
Outperform
AstraZeneca2.63%$7.24M$282.75B25.39%
80
Outperform
Novartis AG2.55%$7.03MCHF216.12B21.33%
80
Outperform
Roche Holding AG2.45%$6.77MCHF254.22B21.32%
73
Outperform
Nestlé SA2.23%$6.14MCHF199.94B-4.87%
71
Outperform

UMMA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
35.26
Positive
100DMA
33.69
Positive
200DMA
31.03
Positive
Market Momentum
MACD
0.70
Positive
RSI
58.54
Neutral
STOCH
33.07
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For UMMA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 37.36, equal to the 50-day MA of 35.26, and equal to the 200-day MA of 31.03, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 33.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMMA.

UMMA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$275.44M0.65%
60
Neutral
$481.49M0.55%
71
Outperform
$336.40M0.34%
61
Neutral
$307.25M0.30%
58
Neutral
$284.14M0.60%
61
Neutral
$104.26M0.45%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UMMA
Wahed Dow Jones Islamic World ETF
38.34
12.45
48.09%
OSEA
Harbor International Compounders ETF
BRIE
MFS Blended Research International Equity ETF
AVDS
Avantis International Small Cap Equity ETF
QLTI
GMO International Quality ETF
IDYN
iShares International Equity Factor Rotation Active ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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