SP Global REIT Guide

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Brief information: SP Funds S&P Global REIT Sharia ETF is an exchange-traded fund incorporated in the USA. The Fund tracks the performance,before fees and expenses, of an index that includes all REIT securities listed in developed and emerging markets and included as constituents of the S&P Global BMI Shariah Index, a comprehensive global Shariah-compliant index of publicly-traded equity securities.

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Introduction to SP Fund S&P Global Reit Sharia ETF (SPRE): 

SP Fund S&P Global REIT Sharia ETF (SPRE) is an exchange-traded fund that focuses on Sharia-compliant global real estate investment trusts (REITs). It provides investors with exposure to the global REIT market while adhering to Islamic finance principles. The ETF aims to track the performance of the S&P Global REIT Sharia Index and offers diversification and potential income through dividend payments and capital appreciation.

What are you investing in?

The SP Fund S&P Global REIT Sharia ETF (SPRE) offers investors exposure to a diversified portfolio of Sharia-compliant global real estate investment trusts (REITs). People who invest in SPRE are allocating their funds to gain exposure to the global REIT market while adhering to Islamic finance principles.

By investing in SPRE, individuals may be seeking several potential benefits. These include:

• Sharia Compliance: Investors who adhere to Islamic finance principles can invest in SPRE knowing that it aligns with their values and avoids prohibited activities such as gambling, alcohol, pork, or interest-based financial services.

• Global REIT Exposure: SPRE provides access to a broad range of global REITs, allowing investors to benefit from the potential income and capital appreciation generated by real estate properties across different regions, property types, and sectors.

• Diversification: Investing in an ETF like SPRE allows individuals to diversify their real estate holdings. The fund typically includes a variety of REITs, spreading the investment risk across multiple properties and geographic locations.
• Convenience and Liquidity: SPRE is an exchange-traded fund, which means it can be bought and sold on stock exchanges like individual stocks. This allows investors to easily buy or sell shares throughout market trading hours.

Top 10 Holdings

Top 10 Holdings	Weight %
Equnix	12.47
Prologis	12.13
Public Storage	11.58
Crown castle	11.32
Equity Lifestyle	4.95
Weyerhaeuser	4.92
Camden Propert	4.79
Mid-America Apartament	4.75
Equity Residental	4.75
Avalonbay Community	4.75

How do you grow your money by investing in  SP Fund S&P Global Reit Sharia ETF (SPRE)?

SPRE aims to grow investors’ money by investing in a diversified portfolio of Sharia-compliant global real estate investment trusts (REITs) and replicating the performance of the S&P Global REIT Sharia Index. As the underlying REITs in the index generate rental income, property appreciation, and profits from their real estate operations, the value of the fund’s investments may increase.

What makes SP Fund S&P Global Reit Sharia ETF (SPRE) Shariah Compliant? 

SPRE ensures compliance with Shariah principles through a dual screening process that excludes companies involved in non-compliant industries and those that do not pass a certain financial threshold. 

Companies that are excluded from the Shariah Screening process are:

• Advertising 
• Media & Entertainment
• Alcohol 
• Financial Services
• Gambling 
• Pork related activities 
• Pornography 
• Tobacco and electronic cigarettes/vaping products 
• Recreational cannabis
• Trading of gold and silver as cash on a deferred basis

Companies then go through another layer of financial screening:

Revenue Share from Non-Compliant Activities	Leverage Compliance	Cash Compliance
Non-Permissible Income (excluding Non-Operating Interest Income) / Revenue < 5%	Debt / Market Value of Equity (36-month average) < 33 %	Accounts Receivables / Market value of Equity (36-month average) < 49 %	(Cash + Interest Bearing Securities) / Market value of Equity (36-month average) < 33%

ESG rating of SP Fund S&P Global Reit Sharia ETF (SPRE):

ESG Overall Score: 65
Environmental Score: 60	Social Score: 63	Governance Score: 73
Controversies score: 97

ESG Overall Score: The overall ESG score of 65 indicates that SPRE has a moderate ESG performance relative to its peers. This score evaluates the fund’s environmental, social, and governance practices as a whole.

• Environmental Score: With a score of 60, SPRE demonstrates a moderate environmental performance. This score assesses the fund’s commitment to environmental sustainability, including factors such as carbon emissions, resource usage, and environmental management practices.
• Social Score: The social score of 63 suggests a moderate social performance for SPRE. This score evaluates the fund’s impact on stakeholders, including employees, communities, and customers. It considers aspects such as labor practices, human rights, and social impact initiatives.
• Governance Score: SPRE receives a governance score of 73, indicating a relatively strong governance performance. This score assesses the fund’s corporate governance practices, including board structure, transparency, and risk management.
• Controversies Score: The controversies score of 97 suggests that SPRE has a high level of controversies or negative incidents associated with its holdings or operations. This score highlights instances of controversies related to environmental, social, or governance issues that may have affected the fund’s reputation.

Investment rating Neutral for SP Fund S&P Global Reit Sharia ETF (SPRE)

Altar Score SPRE 5.3%

Category Average 4.3%

Based on the provided information, the SP Fund S&P Global REIT Sharia ETF (SPRE) has an investment rating of “Neutral” based on its ALTAR Score. The ALTAR Score for SPRE is 5.3%, while the category average ALTAR Score is 4.3%.

The “Neutral” rating indicates that the valuations of stocks within SPRE are considered to adequately reflect their fundamentals compared to other ETFs in the same category. It suggests that the appreciation potential of the fund is considered average, with valuations aligning reasonably well with the underlying stocks’ fundamentals.

The ALTAR Score is a metric used to assess the potential return of an investment relative to its risk. A score in the middle quintile (40%-60%) of the category indicates that SPRE is performing in line with its peers in terms of the relationship between potential return and risk.

However, it’s important to note that the ALTAR Score is just one factor to consider when evaluating an ETF. Other factors such as expense ratios, diversification, historical performance, and market conditions should also be taken into account. It is advisable to conduct further research and consider individual investment goals and risk tolerance before making investment decisions.

Industry Sector

Name	Weight
Financials	98.07
Non-Classified – Non-Equity	0.28

Based on the provided information, the industry sector allocation of the SP Fund S&P Global REIT Sharia ETF (SPRE) is as follows:

1. Financials: The financials sector makes up approximately 98.07% of the ETF’s portfolio. This indicates that a significant portion of the fund’s investments are allocated to companies in the financial sector. The financial sector typically includes banking, insurance, real estate investment trusts (REITs), asset management, and other financial services.
2. Non-Classified – Non-Equity: The non-classified – non-equity category represents a smaller portion of the ETF’s portfolio, approximately 0.28%. This category typically includes investments that are not classified within traditional equity sectors. It may include assets such as cash, fixed-income securities, or other non-equity investments.

Country Allocation

Name	Weight
United States	95.23
Australia	3.05
Singapore	0.49
Philippines	0.37
Thailand	0.32
Malaysia	0.27
Unidentified	0.19
Turkey	0.08

The country allocation of the SP Fund S&P Global REIT Sharia ETF (SPRE) based on the provided information is as follows:

• United States:

The United States has the largest country allocation, accounting for approximately 95.23% of the ETF’s portfolio. This indicates that a significant portion of the fund’s investments are in U.S.-based companies.

• Australia:

 Australia has a country allocation of approximately 3.05% in the ETF’s portfolio. This suggests that the fund has allocated a smaller portion of its investments to Australian companies.

• Singapore:

 Singapore represents around 0.49% of the ETF’s portfolio. This indicates a smaller allocation to companies based in Singapore.

• Philippines: 

The Philippines accounts for approximately 0.37% of the ETF’s portfolio, suggesting a smaller allocation to Philippine-based companies.

• Thailand:

 Thailand has a country allocation of about 0.32%, indicating a smaller allocation to Thai companies.

• Malaysia:

 Malaysia represents approximately 0.27% of the ETF’s portfolio, indicating a smaller allocation to Malaysian companies.

• Unidentified:

The “Unidentified” category represents around 0.19% of the ETF’s portfolio. This could indicate investments in companies where the country of origin is not specified or classified.

• Turkey: 

Turkey has the smallest country allocation, approximately 0.08%, in the ETF’s portfolio. This suggests a relatively smaller allocation to Turkish companies.

Analysis of SP Fund S&P Global Reit Sharia ETF (SPRE) NASDAQ

Analysis	Over 1 Year
Sharpe ratio	-0.22
Sortinio	-0.19
Treynor ratio	-1.45
Tracking error	2.00
Information ratio	-0.01
R/R Ratio	-0.13
Alpha	-0.10
Beta	0.94
Bear Beta	1.10
Bull Beta	1.31
R2	0.90
Adjusted R2	0.88
Value at Risk Normal	-10.93
Value at Risk normal ETL	-13.49

 

Standard Deviation	21.27
CoVariance	33.72
Variance	37.7
Statistical Analysis	1 Year
Correlation	0.95
Downside Deviation Population	1.36
Semi Deviation	7.55
Semi Variance	57.01

Sharpe Ratio Conclusion of SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year Sharpe ratio of -0.22%.

The Sharpe ratio of -0.22% indicates a negative risk-adjusted return for the SPRE ETF over one year. It suggests that the ETF’s return may not have adequately compensated investors for the level of risk taken. A negative Sharpe ratio typically indicates a suboptimal investment performance. Investors should consider this ratio when assessing the risk and return trade-off of the SPRE ETF compared to other investment options.

Sortinio Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year Sortino ratio of -0.19%.

The Sortino ratio of -0.19% indicates a negative risk-adjusted return for the SPRE ETF over one year, specifically focusing on downside risk. It suggests that the ETF’s return may not have adequately compensated investors for the level of downside risk taken. A negative Sortino ratio typically indicates suboptimal performance in managing downside risk. Investors should consider this ratio when evaluating the risk and return characteristics of the SPRE ETF compared to other investment options, particularly in relation to downside risk.

Treynor Ratio  Conclusion of SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year Treynor ratio of -1.45%.

The Treynor ratio of -1.45% indicates a negative risk-adjusted return for the SPRE ETF over one year, taking into account systematic risk. It suggests that the ETF’s return may not have provided adequate compensation for the level of systematic risk taken. A negative Treynor ratio typically indicates underperformance relative to the systematic risk exposure. Investors should consider this ratio when evaluating the risk and return trade-off of the SPRE ETF compared to other investment options, particularly in relation to systematic risk.

Tracking Error Conclusion of SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a tracking error of 2% over one year. The tracking error indicates that the ETF’s performance has deviated by 2% from its benchmark index. This suggests that the ETF’s returns may not closely mirror the performance of its intended benchmark. Investors may need to assess the impact of this tracking error on their investment strategy and consider alternative options if a closer alignment with the benchmark is desired.

Information ratio Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has an information ratio of -0.01% over one year. The negative information ratio suggests that the ETF’s performance has not generated significant excess returns relative to its benchmark index after adjusting for risk. This indicates that the ETF’s active management or stock selection has not added value to investors. Investors may need to reassess the ETF’s performance and consider alternative investment options that offer better risk-adjusted returns.

Risk/Reward (R/R) ratio Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a risk-to-reward ratio of -0.13% over one year. The negative risk-to-reward ratio indicates that the potential reward of the investment has not justified the level of risk taken. This suggests that the investment has not provided sufficient returns relative to the risks incurred. Investors may need to review the performance and risk profile of SPRE and consider alternative investment options that offer better risk-to-reward ratios.

Alpha Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT has an alpha of -0.1% over one year. The negative alpha suggests that the fund’s performance has underperformed its benchmark index by 0.1%. This indicates that the fund’s active management has not added value in generating excess returns. Investors may need to reassess the fund’s performance and consider alternative investment options that have the potential to outperform the benchmark.

Beta Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a beta of 0.94% over one year.

A beta of 0.94% indicates that the SPRE ETF has exhibited a slightly lower level of volatility compared to its benchmark index. This suggests that the ETF’s price movements have been relatively less sensitive to market fluctuations. Investors may consider this lower beta as an indication of potentially lower risk compared to the broader market.

Bear Beta Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a bear beta of 1.1%. A bear beta of 1.1% suggests that the SPRE ETF has historically exhibited slightly higher sensitivity to downward movements in the market compared to its benchmark index during bearish market conditions. This indicates that the ETF’s price may potentially decline more than the benchmark during market downturns. Investors should consider this higher bear beta when assessing the potential risks and downside exposure of the SPRE ETF in adverse market conditions.

Bull Beta Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a bull beta of 1.31% over one year. A bull beta of 1.31% suggests that the SPRE ETF has historically exhibited slightly higher sensitivity to upward movements in the market compared to its benchmark index during bullish market conditions. This indicates that the ETF’s price may potentially rise more than the benchmark during market upswings. Investors should consider this higher bull beta when assessing the potential risks and upside potential of the SPRE ETF in favourable market conditions.

R-squared Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has an R-squared (R2) of 0.9% over one year. An R-squared of 0.9% indicates that 90% of the variability in the SPRE ETF’s returns can be explained by movements in its benchmark index. It suggests a relatively high correlation between the ETF’s performance and its benchmark. Investors may consider this high R-squared value to indicate that the ETF closely tracks its benchmark and may offer a similar return pattern.

Adjusted R-squared Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has an adjusted R-squared (R2) of 0.88% over one year. An adjusted R-squared of 0.88% indicates that approximately 88% of the variability in the SPRE ETF’s returns can be explained by movements in its benchmark index, after adjusting for the number of predictors in the model. This suggests a strong correlation between the ETF’s performance and its benchmark. Investors may consider this high adjusted R-squared value as an indication that the ETF closely tracks its benchmark and may offer a similar return pattern, while accounting for the influence of other factors or predictors in the model.

Value at Risk (VaR) Normal Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year Value at Risk (VaR) of -10.93% using the Normal distribution. The VaR of -10.93% indicates that, based on historical data and assuming a Normal distribution, there is a 5% chance (or 1 in 20) that the SPRE ETF’s one-year return could be worse than -10.93%. This metric estimates the potential downside risk faced by investors holding the ETF. Investors should consider this VaR figure when assessing the potential losses they could experience with the SPRE ETF in adverse market conditions.

Value at Risk normal ETL Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year Value at Risk (VaR) using the Normal distribution of -13.49%. The Value at Risk (VaR) of -13.49% for SPRE indicates that, based on historical data and assuming a Normal distribution, there is a 1% chance (or 1 in 100) that the ETF’s one-year return could be worse than -13.49%. This metric estimates the potential extreme downside risk faced by investors holding the ETF. Investors should consider this VaR figure to measure the potential loss they could experience in rare adverse market scenarios.

Standard Deviation Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year standard deviation of 21.27%. The standard deviation of 21.27% indicates the historical volatility or variability of the SPRE ETF’s returns over the one-year period. A higher standard deviation suggests a greater level of price fluctuation, indicating potentially higher risk associated with the investment. Investors should consider this standard deviation when assessing the potential volatility and risk of the SPRE ETF in their investment portfolio.

Covariance Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year covariance of 33.72%.

The covariance of 33.72% indicates the relationship between the returns of the SPRE ETF and another asset or benchmark over one year. It suggests that there is a positive covariance, indicating that the returns of the SPRE ETF tend to move in the same direction as the other asset or benchmark. Investors may consider this covariance when assessing the potential diversification benefits and risk-return characteristics of including the SPRE ETF in their investment portfolio.

Variance Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year variance of 37.7%.

The variance of 37.7% represents the average squared deviation of the SPRE ETF’s returns from its mean return over the one-year period. It is a measure of the ETF’s volatility and risk. A higher variance implies greater price fluctuations and potentially higher risk associated with the investment. Investors should consider this variance when evaluating the potential volatility and risk of the SPRE ETF in their investment portfolio.

Correlation Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year correlation of 0.95%.

The correlation of 0.95% indicates a strong positive relationship between the returns of the SPRE ETF and another asset or benchmark over one year. It suggests that the returns of the SPRE ETF tend to move in the same direction as the other asset or benchmark, with a high degree of similarity. Investors may consider this high correlation when assessing the potential diversification benefits and risk-return characteristics of including the SPRE ETF in their investment portfolio.

Downside- Deviation Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year downside deviation (population) of 1.36%. The downside deviation of 1.36% measures the volatility or variability of the SPRE ETF’s returns below a certain threshold or downside risk level. It focuses specifically on the negative or downside movements in returns. A lower downside deviation suggests potentially lower risk associated with the SPRE ETF in adverse market conditions. Investors may consider this metric when evaluating the potential downside risk and stability of the SPRE ETF in their investment portfolio.

Semi-Deviation Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year semi-deviation of 7.55%. The semi-deviation of 7.55% measures the volatility or variability of the SPRE ETF’s returns below its mean return over the one-year period. It focuses specifically on negative or downside movements in returns. A lower semi-deviation suggests potentially lower risk associated with the SPRE ETF in adverse market conditions. Investors may consider this metric when evaluating the potential downside risk and stability of the SPRE ETF in their investment portfolio.

Semi-variance Conclusion SP Fund S&P Global Reit Sharia ETF (SPRE):

The SP Fund S&P Global REIT Sharia ETF (SPRE) has a one-year semi-variance of 57.01%. The semi-variance of 57.01% represents the average squared deviation of the SPRE ETF’s returns below its mean return over one year. It is a measure of downside volatility or risk. A higher semi-variance indicates potentially higher risk associated with the SPRE ETF in adverse market conditions. Investors should consider this metric when evaluating the potential downside risk and stability of the SPRE ETF in their investment portfolio.

Factor Scorecard

Based on the provided factor scorecard for SPRE  with the following scores:

 

Size	68
Value	31
Yield	76
Momentum	25
Volatility	44
Quality	71

1. Size: The Size factor score is 68. This suggests that the ETF’s holdings have a relatively moderate exposure to the Size factor. The Size factor typically looks at the market capitalization of companies, with higher scores indicating a larger average market capitalization of the holdings.
2. Value: The Value factor score is 31. This indicates that the ETF’s holdings have a relatively lower exposure to the Value factor. The Value factor typically evaluates the valuation metrics of companies, with higher scores indicating a higher potential for undervalued stocks.
3. Yield: The Yield factor score is 76. This suggests that the ETF’s holdings have a relatively higher exposure to the Yield factor. The Yield factor typically looks at the dividend yield or income generation potential of companies, with higher scores indicating a higher average dividend yield.
4. Momentum: The Momentum factor score is 25. This indicates that the ETF’s holdings have a relatively lower exposure to the Momentum factor. The Momentum factor typically evaluates the price trend and relative strength of companies, with higher scores indicating a higher likelihood of positive price momentum.
5. Volatility: The Volatility factor score is 44. This suggests that the ETF’s holdings have a relatively moderate exposure to the Volatility factor. The Volatility factor typically looks at the historical price volatility of companies, with higher scores indicating higher historical price fluctuations.
6. Quality: The Quality factor score is 71. This indicates that the ETF’s holdings have a relatively higher exposure to the Quality factor. The Quality factor typically evaluates the financial health, profitability, and stability of companies, with higher scores indicating higher-quality companies.

Is SP Fund S&P Global Reit Sharia ETF (SPRE) regulated?

Yes, through being listed on the NYSE Arca Consolidated.