ITS Shariah ETF: 25.5% return in first year of trading - world-class Islamic investments developing rapidly in Central Asia

International Trading Systems Posted

The international trading system ITS and the Astana International Financial Centre (AIFC) mark the first anniversary of the ITS Shariah ETF (ticker: ITSS) - the first exchange-traded fund compliant with Islamic finance principles in Central Asia and the Caucasus.

In 2025, the ITS Shariah ETF, which tracks ITS's own ITS Shariah Index, delivered a 25.5% return, including dividend payments from index constituents. Over the same period, the ITS Shariah Index, which comprises shares of the 30 largest U.S. companies whose operations comply with Shariah principles, rose 23.6%, significantly outperforming the S&P 500 (up 16.4%). This performance confirms the competitiveness
of ITS's Islamic investment product in the global market.

Islamic finance: global growth and Kazakhstan's leadership Total assets held in Islamic financial institutions and instruments have grown by more than 80% over five years: from $3.6 trillion in 2020 to more than $6.5 trillion in 2025. According to analyst forecasts, this figure will exceed $7.5 trillion by 2028. This development is driven not only by economic growth and population increases in
Muslim countries but also by non-Muslim investors' interest in traditional Islamic instruments based on prohibitions against interest-bearing lending (riba), excessive uncertainty and speculation (gharar) and investments in alcohol, tobacco, gambling and weapons.

Kazakhstan ranks 19th globally in the Islamic Finance Development Index and leads Central Asia on this metric. The region's first Islamic banking law, development of infrastructure for Islamic bonds (sukuk) and establishment of the AIFC created the foundation for products like ITSS.

"Investors who prefer Islamic instruments are becoming a noticeable force in global markets. This demand has spurred the development of new segments - from sukuk to Islamic fintech. Today there are more than 4,500 Shariah indexes worldwide, and ITSS's success is a vivid example of how this trend is reaching new regions" noted Mufti Ibrahim Essa, an international Islamic finance expert who participated in the creation of ITSS.

"The ITS team's goal from the outset was not a formal Islamic brand but full compliance with international standards" he added.

ITS Shariah ETF: technology, index and results ITSS was launched on January 14, 2025, with an initial placement of $5 million. The fund tracks the ITS Shariah Index, calculated since August 2023. It includes 30 major
global companies that have passed Shariah screening, including AMD, Apple, AstraZeneca, Caterpillar, Chevron, ExxonMobil, Microsoft, Nvidia and Tesla. For 2025, ITSS delivered one of the best returns among global Shariah ETFs. For comparison: the U.S.-listed SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) with $1.95 billion in assets under management showed 19%, the popular Wahed FTSE USA Shariah ETF (HLAL) with $729 million in assets under management posted 18.8%, while the global Wahed Dow Jones Islamic World ETF (UMMA) delivered only 5.4%. ITSS also outperformed European and Asian peers: iShares MSCI World Islamic UCITS ETF (+7.6%) and Invesco Dow Jones Islamic Global Developed Markets UCITS ETF (+7.6%).

A distinctive feature of ITSS is its low entry threshold - investors only need to purchase ITSS shares priced at slightly over $10, while investment income for Kazakhstan tax residents is not subject to taxation. The ITSS portfolio is reviewed monthly: 12 rebalancings were conducted in 2025, during which an independent Shariah supervisory board analyzed debt levels, revenue structure and business models of issuers, and adjusted the index composition when necessary.

"We are grateful for the Islamic community's support and pleased that in its first year, the fund built on the strictest Shariah standards demonstrated its advantages. ITSS is not simply a basket of foreign stocks. ITSS represents the highest-quality global companies behind which stand real products and services bringing daily benefits to millions of people worldwide," noted ITS Managing Director Alexander Diakovsky.
"We don't chase high returns, preferring quality and strict selection of financial assets, but a 25% annual return in hard currency in the fund's first year was undoubtedly an excellent investment outcome for thousands of Muslims who invested in ITSS in 2025" Diakovsky added.

Shariah compliance and social responsibility Companies included in the ITS Shariah index undergo multi-level screening. If an issuer stops meeting Shariah requirements - for example, if its debt load exceeds thresholds
established by Shariah standards or its business profile shifts toward prohibited sectors- it is excluded during the next index rebalancing.

In May 2025, ITS and the Zakat and Charity Fund under the Spiritual Administration of Muslims of Kazakhstan (Zakat Fund) signed a memorandum of understanding aimed at developing cooperation in Islamic finance in Kazakhstan and Central Asia, and in September ITS directed a portion of ITSS's dividend income to charity. "ITSS is an opportunity for Muslims to invest in accordance with their religious beliefs without sacrificing returns. The commitment to transfer part of that income to Zakat demonstrates that ITS is a socially responsible company combining commercial success and service to society" noted Zakat Fund head Maksatbek Kairgaliyev.
Kazakhstan's role in Islamic investment development The ITSS launch aligns with global growth in demand for Islamic investments that combine transparency, rejection of speculation and restrictions on investments in certain business sectors.

"This project is more than just a new financial instrument. It's about building trust and developing ethical investments. We see sustained growth in demand for Islamic products not only among Muslims but also among investors who want to invest capital in accordance with their values. Investors from Kazakhstan and our region overall should have more such opportunities, and ITSS is an important step in this direction" said Madina Tukulova, Chair of the Association of Islamic Finance and Business.

About ITS
ITS is a trading platform operating under AIFC jurisdiction. ITS offers investors more than 3,200 global market instruments listed in the U.S. and Kazakhstan. Among unique products developed by ITS are exchange-traded funds based on proprietary indexes and the ability to trade shares of companies going public ahead of their New York debut. In 2025, ITS showed record results: total trading volume exceeded $14 billion, 70 times
the 2024 figure. The number of investors with trading access exceeded 1.2 million people, with 18 participants from six countries operating in the market - Kazakhstan, Armenia, Bulgaria, Cyprus, Oman and South Africa.
ITS clients are professional securities market participants from Kazakhstan and other countries - financial intermediaries accredited or registered with the AIFC. Retail and corporate investors access trading through financial intermediaries - brokers and banks.

About the AIFC
The Astana International Financial Centre (AIFC) is a financial hub operating on English law principles and providing a platform for developing and placing innovative financial products, including in Islamic finance.

ITS Press Service
Email: [email protected]
Instagram: @itsglobalstocks
LinkedIn: https://www.linkedin.com/company/itsx-official/
Telegram: @itsx_official
YouTube: https://www.youtube.com/@itsx-official