GET DAILY SIGNALSWahed Dow Jones Islamic World ETF (UMMA) Shows an 8.4% Pullback
Key Takeaways
- UMMA is an actively managed, Shariah-compliant ETF providing ex-U.S. exposure to developed and emerging market equities, loosely benchmarked to the Dow Jones Islamic Market International Titans 100 Index.
- The portfolio is heavily tilted toward information technology, roughly 45% of assets, with top positions in Samsung Electronics, SK hynix, Taiwan Semiconductor, ASML, and Infineon Technologies.
- Shariah screening excludes conventional interest-based financials, giving the fund effectively zero exposure to banks and insurers while tilting it toward technology, healthcare, and industrials.
- The fund has declined about 8.4% over the past 30 days, with the pullback concentrated in semiconductor and Asian technology holdings following a largely range-bound third quarter.
- Primary structural risks include semiconductor-cycle volatility, foreign-currency translation, and concentration in a limited group of large Asian and European technology companies.
- For deeper analysis of this ticker, review dedicated Price Targets and Forecast pages to examine technical levels and forward-looking signals.
- Explore Trending AI Robots to see how algorithmic strategies are positioning across ETFs and equities.
UMMA Overview and Strategy
The Wahed Dow Jones Islamic World ETF seeks long-term capital appreciation by investing in international, ex-U.S. companies that pass rules-based screens for Shariah compliance, with additional environmental, social, and governance considerations incorporated into security selection. The fund is actively managed but loosely tracks the Dow Jones Islamic Market International Titans 100 Index. UMMA launched in January 2022 and carries a net expense ratio of 0.65%.
The portfolio holds roughly 100 securities with approximately $273 million in assets under management. Top holdings include Samsung Electronics, SK hynix, Taiwan Semiconductor Manufacturing (TSM), ASML Holding (ASML), Infineon Technologies, Constellation Software, Roche, Tokyo Electron, and AstraZeneca (AZN). Sector allocation is dominated by technology at roughly 45%, followed by healthcare (about 15–17%), industrials (about 12%), basic materials (about 9%), and consumer discretionary and staples (each around 7%). Energy and financials are minimal because the screens remove interest-based financial institutions and many indebted commodity producers. I also checked this using Tickeron’s AI Screener to see how the fund compares to other international equity strategies.
Industry and Thematic Context
UMMA sits at the intersection of two durable investment themes: faith-based, Shariah-compliant investing and the global semiconductor complex. Because conventional banks, insurers, and heavily leveraged companies are screened out, the fund's investable universe skews structurally toward asset-light technology, pharmaceutical, and industrial franchises. Its largest geographic exposures are Japan, South Korea, Switzerland, Canada, and the United Kingdom, with meaningful representation from Taiwan, Germany, France, and the Netherlands.
The surrounding market environment has been defined by the memory and AI-driven semiconductor cycle. Names such as SK hynix and Samsung Electronics are directly exposed to high-bandwidth memory demand tied to artificial-intelligence infrastructure, while ASML and Tokyo Electron are positioned in semiconductor capital equipment. Macroeconomic conditions, including the path of global interest rates and U.S. dollar strength, are especially relevant because the fund holds non-U.S. assets whose returns are translated back into dollars. From what I see, this setup makes currency movements a key variable to track.
Recent Performance and Positioning
UMMA has softened in recent weeks after a relatively range-bound stretch through much of the third quarter. The fund traded near $37 in early October and has since slipped to roughly $33.85, a decline of about 8.4% over the trailing 30 days and roughly 8% over the trailing three months. The move has been back-loaded rather than gradual, with much of the weakness arriving alongside a pullback in semiconductor-related equities.
This positioning helps explain the behavior. With technology representing nearly half of the portfolio and memory-chip and semiconductor-equipment names among the largest positions, UMMA's returns are highly sensitive to shifts in the semiconductor cycle and to investor sentiment around Asian technology exporters. Currency translation adds another layer: a stronger U.S. dollar tends to dampen the dollar-denominated returns of the fund's Japanese, Korean, and European holdings. The near-total absence of financials also means the fund does not benefit from the interest-rate-driven earnings patterns that support bank-heavy international benchmarks.
2026 Outlook and Key Factors to Monitor
Looking ahead, the most important structural factors for UMMA are the trajectory of the semiconductor and memory cycle, the pace of artificial-intelligence capital spending, and the foreign-exchange environment. Memory pricing and HBM demand will remain central to the fund's Korean-heavy exposure, while trends in semiconductor capital equipment affect ASML and Tokyo Electron. Monetary policy across major developed and emerging economies, along with U.S. dollar direction, will influence both equity valuations and the translation of international returns.
Investors should also monitor the growth of Shariah-compliant and ESG-oriented capital flows, which can affect demand for these strategies, and the fund's persistent concentration in a handful of large technology franchises. Potential catalysts and risks include shifts in global trade policy affecting semiconductor supply chains, changes in inflation and interest-rate expectations, and earnings cycles at the fund's largest healthcare and industrial holdings. None of these constitutes a price forecast; rather, they define the themes most likely to shape UMMA's performance through 2026. I’m watching this closely as the semiconductor cycle evolves.
Using Tickeron’s AI Tools for ETF Research
In my own process, I often turn to Tickeron’s AI-powered platforms when evaluating thematic ETFs like UMMA. The AI Screener helps surface comparable international and faith-based strategies by applying technical indicators, fundamentals, and AI signals across thousands of securities. It allows for efficient comparisons by sector, geography, and performance characteristics, which complements traditional research when assessing exposures in technology-heavy or Shariah-compliant funds. This approach has been useful for identifying similar opportunities without manually sorting through large datasets.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
UMMA's RSI Indicator ascending out of oversold territory
The RSI Oscillator for UMMA moved out of oversold territory on November 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In 21 of the 22 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where UMMA advanced for three days, in 240 of 281 cases, the price rose further within the following month. The odds of a continued upward trend are 85%.
UMMA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 271 of 306 cases where UMMA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 89%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 03, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on UMMA as a result. In 59 of 69 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 86%.
The Moving Average Convergence Divergence Histogram (MACD) for UMMA turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 36 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
UMMA moved below its 50-day moving average on October 08, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for UMMA crossed bearishly below the 50-day moving average on October 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 71%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UMMA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
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