Wahed FTSE USA Shariah ETP vs MSCI Which Offers More Value?

Wahed FTSE USA Shariah ETP is an exchange-traded fund that tracks the performance of companies listed on the FTSE USA Shariah Index. This index only includes companies that adhere to Islamic principles, such as avoiding investments in industries like alcohol, tobacco, gambling, and firearms. On the other hand, MSCI stocks represent a broader universe of companies across various sectors and industries. Investors looking for socially responsible investment options may prefer the Shariah-compliant approach of the Wahed ETP, while those seeking diversified exposure may opt for MSCI stocks.

Wahed FTSE USA Shariah ETP or MSCI?

When comparing Wahed FTSE USA Shariah ETP and MSCI, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Wahed FTSE USA Shariah ETP and MSCI.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Wahed FTSE USA Shariah ETP has a dividend yield of 0%, while MSCI has a dividend yield of 1.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wahed FTSE USA Shariah ETP reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, MSCI reports a 5-year dividend growth of 23.52% year and a payout ratio of 40.87%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Wahed FTSE USA Shariah ETP P/E ratio at 0.00 and MSCI's P/E ratio at 40.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wahed FTSE USA Shariah ETP P/B ratio is 0.00 while MSCI's P/B ratio is -65.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wahed FTSE USA Shariah ETP has seen a 5-year revenue growth of 0.00%, while MSCI's is 0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wahed FTSE USA Shariah ETP's ROE at 0.00% and MSCI's ROE at -167.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $15.76 for Wahed FTSE USA Shariah ETP and $620.32 for MSCI. Over the past year, Wahed FTSE USA Shariah ETP's prices ranged from $12.87 to $16.82, with a yearly change of 30.66%. MSCI's prices fluctuated between $439.95 and $642.45, with a yearly change of 46.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.