Wahed and KraneShares Launch KWIN, A New Shariah-Compliant ETF For Income Seekers

Wahed and KraneShares Introduce KWIN: A Shariah-Compliant ETF

On November 5, 2025, Wahed, a pioneer in Shariah-compliant digital investing, has teamed up with KraneShares, known for their innovative ETFs, to introduce the KraneShares Wahed Alternative Income Index ETF (NYSE: KWIN). This new fund is specifically designed for investors seeking alternative income solutions while adhering to Islamic principles.

What is KWIN?

The KWIN fund aims to track the Wahed Shariah Alternative Income Index. Unlike traditional income funds that predominantly rely on interest-bearing securities, KWIN's investment strategy is unique; it generates returns through Shariah-compliant forward sale agreements. This innovative approach allows KWIN to pursue alternative income opportunities while still being consistent with Islamic finance principles, and also lessens exposure to equity market risks.

Staying True to Faith and Value

Mohsin Siddiqui, CEO of Wahed, expressed that KWIN was created for investors looking to balance their faith with their financial goals. “We’ve amalgamated rigorous Shariah screening with modern portfolio strategies to present Muslims and values-driven investors with a product that is both halal and competitive in today’s financial landscape,” he stated.

How KWIN Differs from Traditional Sukuk

Historically, Sukuk has been the mainstay for Shariah-compliant fixed-income investments. While they serve a crucial role, Sukuk can exhibit considerable illiquidity, price volatility, and exposure to credit risks. In contrast, KWIN has been crafted to overcome these challenges by offering enhanced liquidity through its ETF format, enabling daily trading.

By employing a sophisticated strategy comprising exchange-traded FLEX contracts on Shariah-compliant stocks, KWIN is designed for a delta-neutral outcome. This means that the fund's performance won't be heavily influenced by the fluctuations in the stock prices of the underlying securities, providing more stability for investors.

Comprehensive Shariah Compliance

Ensuring compliance with Islamic principles is at the core of KWIN. The fund follows a meticulous two-step screening process designed by Wahed’s Shariah Team:
1. Business Activity Screen: This step excludes companies that primarily engage in sectors deemed non-permissible under Islamic law, including traditional financial services, alcohol, pork products, gambling, adult entertainment, and weapons manufacturing.
2. Financial Ratio Screen: Companies that have excessive debt or derive more than 5% of their revenue from non-compliant activities are omitted from the portfolio.

All holdings within the fund are monitored quarterly, reinforcing KWIN's commitment to maintaining continuous compliance with Islamic finance principles.

A Strategic Collaboration

The launch of KWIN symbolizes the strategic partnership between Wahed's expertise in making halal investing accessible through cutting-edge digital platforms and KraneShares' innovative approach in providing thematic investment strategies. Jonathan Shelon, COO of KraneShares, asserted that KWIN stands as a testament to their commitment to pioneering alternative income solutions using advanced market strategies.

Conclusion

As faith-aligned investment opportunities continue to evolve, KWIN represents a significant advancement, catering to the needs of the growing Muslim investor population and those interested in values-driven investments. With its unique structure and rigorous compliance measures, KWIN offers a promising avenue for alternative income without sacrificing faith-based values.

Important Risks and Disclosures

It is crucial for potential investors to understand that investing involves risks, including potential loss of principal. Detailed information about KWIN, including investment objectives, risks, and expenses, is available in the fund's prospectus. As with all investments, there is no guarantee of achieving the fund's objectives, and potential investors should perform due diligence before making investment decisions.