Today, February 13, 2026, Invesco listed a new product on the London Stock Exchange dedicated to investors who follow Islamic investment principles.
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By ETFWorld.co.uk
Matthew Tagliani, Head of ETF Product EMEA at Invesco
This is the Invesco MSCI ACWI Islamic M-Series UCITS ETF Acc, a passive vehicle that replicates the MSCI index of the same name using a market capitalization-based screening methodology.
The ETF, with ISIN IE000LFC57H7, was launched with a total expense ratio (TER) of 0.35% and distributes dividends on a cumulative basis.
Investment objective and strategy
The vehicle aims to replicate the total net return of the MSCI ACWI Islamic M-Series index net of fees. The benchmark index is designed to reflect the performance of large- and mid-cap companies in developed and emerging markets that pass the Sharīʿah investment principles compliance filters.
The unique feature of this ETF lies in the underlying index, which belongs to the “M-Series” family launched by MSCI in 2015. Unlike the classic series (A-Series), which uses total assets for financial filters, the M-Series uses average market capitalization as the denominator for financial ratios, a methodology that some investors believe is more representative of a company’s current size.
Index construction and screening
The index is constructed from the traditional MSCI ACWI (the “Parent Index”) through a two-step exclusion process:
Sector screening: Companies involved in activities considered non-compliant with Sharīʿah principles are excluded, including: alcohol, tobacco, pork products, conventional (non-Islamic) financial services, weapons and defense, hotels, gambling and casinos, movies, music, and adult entertainment.
Financial screening: The remaining companies are subject to balance sheet checks. According to the MSCI Islamic M-Series methodology, companies with excessive debt or that derive significant income from interest are excluded, using thresholds calculated on average market capitalization. The three main ratios require that total debt, the sum of cash and interest-bearing securities, and the sum of trade receivables and cash not exceed certain percentages of the issuer’s average market capitalization.
Once the filters have been applied, the index weights eligible securities by float-adjusted market capitalization, with a maximum cap of 5% per issuer. Rebalancing is quarterly.
Portfolio management and compliance
The ETF is passively managed. Invesco will use a sampling strategy to replicate the index, selecting a representative portfolio of securities based on factors such as industry sectors, country weights, and liquidity.
A distinctive feature is the supervision of religious compliance. The listing press release specifies that a Sharīʿah committee appointed by the investment manager will be responsible for verifying the compliance of the fund’s investments with Islamic principles.
The performance of the benchmark index does not reflect non-permissible income received from the underlying securities, implying the application of a dividend purification mechanism in line with market practices for Islamic products.
Technical characteristics
Issuer: Invesco
ISIN: IE000LFC57H7
Underlying index: MSCI ACWI Islamic M-Series Index
Territory: Global (Developed and emerging markets)
Currency: USD
Fees (TER): 0.35%
Dividend policy: Accumulation (Acc)
Replication methodology: Sampling
With this listing, Invesco offers the European market a tool for obtaining global equity exposure in line with the principles of Islamic finance, characterized by an alternative financial screening methodology (market cap-based) compared to other traditional asset-based products. The ETF is intended as a vehicle for acquiring shares in a passive fund that replicates an index, rather than as a direct purchase of the underlying assets.
Source: ETFWorld.co.uk
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