5 ms·
So the obvious thing to do, for someone that's got ~$3mm to play with, is to setup an ETF that is SP500 but with the old rules. If you can convince $40mm of oth
by fragmede 5mo ago
So the obvious thing to do, for someone that's got ~$3mm to play with, is to setup an ETF that is SP500 but with the old rules. If you can convince $40mm of other people's money to go into your not-specifically-Musk-less-but-just-happens-to-be ETF, they'd come out ahead.
- sersi 5mo agoOnly $3mm needed?
- roflulz 5mo agoThe S&P Shariah index fund is required to exclude SpaceX and already exists https://www.spglobal.com/spdji/en/indices/equity/sp-500-shariah-index/#overview https://www.spglobal.com/spdji/en/indices/equity/sp-500-shar...
- deaux 5mo agoLooking at their exclusion criteria, which one do you believe it falls under?
- decimalenough 5mo agoWhy would a Shariah index fund have to exclude SpaceX?
- riffraff 5mo agoWhy? Was space exploration incompatible with Sharia? Is it the pornography bit of xAI?
- brainwad 5mo agoAdvertising, presumably. But that also excludes, like, all of big tech?
- KPGv2 5mo agoOne presumes it's because a huge amount of its revenue comes from defense contracts, which are haram. Here is n excerpt from the fund's exclusion criteria: > S&P 500 Shariah Industry Exclusions. The index universe consists of all the constituents in the S&P 500 Shariah, excluding companies classified as part of GICS sub-industries 20101010 (Aerospace & Defense), 40203040 (Financial Exchanges & Data), 40201060 (Transaction & Payment Processing Services).
- throwaway2037 5mo agoThat is wild. Saudi Arabia which is governed by sharia law spends about 7% of its GDP per year on its military. I had no idea that ownership of defense contractors is considered haraam.
- DaedalusII 5mo agoopinions vary, but this was the opinion adopted when formulating this index it probably makes it easier to ship in europe where some private banks and pensions (eg denmark gov) ban defence investment
- throwaway2037 5mo ago> the opinion adopted when formulating this index You raise an excellent point. I did a little bit of Googling and discovered: > S&P Shariah indices ... are overseen by an independent Shariah Supervisory Board consisting of a panel of internationally renowned Islamic scholars. This board is facilitated by Ratings Intelligence Partners, a London and Kuwait-based Islamic finance advisory firm. Ref: https://www.ratingsintelligence.com/ https://www.ratingsintelligence.com/
- gizajob 5mo agoSeems bizarre to have a Shariah-compliant index fund comprising companies that are all levered with huge amounts of debt financing.
- mynameajeff 5mo agoSpent way too long looking into this, and I don't think the plain S&P 500 Shariah would exclude SpaceX, I spent a while reading through the methodology [1][2] of the index and I don't see why it would be. I do think the S&P 500 Shariah Industry Exclusions Index [2][3] would be the one that excludes SpaceX as it excludes Aerospace, while no such exclusion exists for the plain S&P 500 Shariah. [1] https://www.spglobal.com/spdji/en/methodology/article/sp-shariah-indices-methodology/ https://www.spglobal.com/spdji/en/methodology/article/sp-sha... [2] https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-shariah-indices.pdf https://www.spglobal.com/spdji/en/documents/methodologies/me... [3] https://www.spglobal.com/spdji/en/indices/equity/sp-500-shariah-industry-exclusions-index/#overview https://www.spglobal.com/spdji/en/indices/equity/sp-500-shar...
- chinathrow 5mo agoWouldn't the other index stocks need to tank as funds must be shifted by large scale investors into the these new gigalistings?