Wahed, a global leader in Shariah-compliant digital investing, has joined forces with KraneShares, a specialist in innovative, research-driven exchange-traded funds (ETFs), to launch the KraneShares Wahed Alternative Income Index ETF . This new fund introduces a modern, faith-based way for investors to access alternative income opportunities without compromising their religious or ethical principles.
The KWIN fund is designed to track the performance of the Wahed Shariah Alternative Income Index, which is carefully structured to comply with Islamic principles while offering investors a path to generate consistent, Shariah-compliant income. Unlike conventional income funds that depend heavily on interest-bearing securities, KWIN operates through forward sale agreements a structure that aligns with Islamic finance and helps reduce exposure to equity market risk.
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“KWIN was created for investors who want to stay true to their faith while accessing alternative income-generating investment strategies,” said Mohsin Siddiqui, CEO of Wahed. “We’ve brought together rigorous Shariah screening and modern portfolio techniques to offer Muslims and values-based investors a product that’s both halal and competitive in today’s markets.”
For years, Sukuk (Islamic bonds) have been the go-to fixed-income option for Shariah-compliant investors. While they remain important, Sukuk can sometimes be illiquid, volatile, and exposed to sovereign or corporate credit risks. KWIN has been designed as an alternative, offering greater liquidity through an ETF format that can be traded daily, providing investors with more flexibility and accessibility.
The fund’s strategy uses a combination of exchange-traded FLEX contracts based on Shariah-compliant stocks. These forward sale agreements aim to achieve a delta-neutral outcome, meaning they are not directly impacted by the price movement of the underlying assets. This allows KWIN to pursue stable, alternative income while staying aligned with Shariah values.
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The underlying index is guided by a comprehensive two-step Shariah screening process, ensuring every holding aligns with Islamic ethics. The first screen excludes companies involved in non-permissible industries such as conventional finance, alcohol, gambling, tobacco, or weapons manufacturing. The second screen focuses on financial ratios, removing companies with excessive debt or that earn more than 5% of their revenue from non-permissible activities. Wahed’s dedicated Shariah Team reviews and monitors all holdings quarterly to ensure ongoing compliance.
KWIN also represents a strong partnership between two industry experts Wahed, known for its mission to make halal investing accessible through cutting-edge technology and governance, and KraneShares, recognized globally for its expertise in alternative and thematic ETFs.
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“KWIN reflects our commitment to creating innovative income solutions using advanced capital market strategies,” said Jonathan Shelon, CFA, COO at KraneShares. “We’re proud to bring together Wahed’s deep Shariah expertise with our global ETF platform. Together, we’re delivering a modern, liquid, and faith-compliant way for investors particularly in the Middle East to pursue alternative income opportunities in today’s uncertain markets.”
With KWIN, Wahed and KraneShares have set out to redefine Shariah-compliant investing, providing a forward-looking option for investors seeking both financial performance and adherence to their faith-based values.
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