Invesco has launched Europe’s first exchange-traded fund (ETF) providing passive exposure to an all-world equity benchmark that adheres to Shariah investment principles. The new fund, the Invesco MSCI ACWI Islamic M-Series UCITS ETF, expands the firm’s Islamic investment offering and gives investors access to a broader global equity universe within a Shariah-compliant framework.
The launch marks Invesco’s second Shariah-compliant ETF. Its existing product, the Invesco Dow Jones Islamic Global Developed Markets UCITS ETF, is currently the largest Islamic UCITS equity ETF in Europe, with approximately $1.1 billion in assets under management. With the addition of the new ETF, investors now have the option of gaining Shariah-compliant exposure to developed markets alone or to a wider global allocation that includes emerging markets.
Islamic finance has evolved considerably over the past five decades, with growth accelerating in recent years as investors increasingly seek cost-efficient, transparent and values-based investment solutions. The expansion of UCITS ETFs has made it easier for investors to access Shariah-compliant strategies, particularly as global demand rises for products aligned with ethical, responsible and sustainable investment principles.
Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, noted that global equity ETFs attracted the largest share of net inflows in 2025, especially those offering exposure to emerging markets. He highlighted that Shariah-focused investors have traditionally faced limited options for diversified global equity exposure, adding that the new ETF provides a simpler and more cost-effective way to access all-world markets in a single product.
The ETF aims to track the performance of the MSCI ACWI Islamic M-Series Index, which includes companies from both developed and emerging market economies worldwide. The index applies business involvement and financial ratio screens to ensure compliance with Shariah principles, with oversight from an independent Shariah supervisory committee.
With this latest launch, Invesco continues to strengthen its presence in the growing Islamic ETF market, offering investors diversified global exposure while maintaining strict adherence to Shariah investment standards.