ITSS FAQ

The value of an ETF can both rise and fall in line with the movement of the index. ETF shares are typically bought and sold on a stock exchange through a broker; they cannot be individually presented to the management company for sale or exchanged for the corresponding shares. For more on this subject, please see the Fund Constitution and offering materials.

The value of ITSS shares may fluctuate and could decrease considerably as a result of the operations of the respective issuers as well as changes in the overall market or economic environment.

As a passively managed fund, the ITSS ETF invests assets in accordance with the ITS Shariah index, replicating the index’s holdings, risk factors and other features as closely as possible. However, any passively managed index fund will deviate slightly from the underlying index, which is based on a mathematical model, due to temporary causes, the need to round the number of securities in the portfolio and other factors. These deviations constitute the so-called tracking error, which fund managers try to minimise but are unable to eliminate entirely.

Although ITSS shares are highly liquid securities traded on the global market, during periods of severe market downturns they may trade with significant spreads and discounts relative to the model values underlying the index. This can impact the tracking error, the net asset value (NAV) per share and the market value of the ETF’s shares.

ETF shares are traded like other stocks and share the same characteristics, such as investment risk and fluctuations in market value, which means they can trade at prices both above and below the net asset value per share. Brokerage commissions are not taken into account in the calculation of the total expense ratio, which can reduce the performance of the investment.

Before making an investment decision, please review the ITSS ETF’s investment objectives, holdings, risks, and the fees charged by the management company and your broker (exchange or MTF). Please read the offering materials and other fund documents on the management company’s website carefully.

Investments in the ITSS ETF may be affected by the overall economic environment, market fluctuations and objective risks associated with investments in securities markets. The prices of investment instruments may change considerably for a large number of reasons, including economic growth or recession, changes in interest and exchange rates, changes in the objective or perceived credit quality of issuers, overall market liquidity, geopolitical events, as well as other factors. Local, regional and global events such as wars, terrorist attacks, pandemics, etc. can have a significant impact on the ITSS ETF and related investments.