Is annual fee of 0.939% too much?

Do you think the total annual fee of HSBC ISLAMIC GLOBAL EQUITY INDEX that is equal to
0.939 % is too high? I mean it has better return than any of the halal European funds and the fund size is more than 1 billion USD. However that 0.939% really scares me. What do you guys think?

Absolutely, I can relate to our concerns as Muslim individual investors. The current annual fee of 0.939% for the HSBC Islamic Global Equity Index fund does prompt careful consideration, particularly when comparing it to other ETFs available with fees as low as 0.3%. It’s worth noting that some brokers also offer management fees as low as 0.75%, adding another perspective to our evaluation.

As we navigate this decision together, here are some thoughts for us to consider:

• Performance: Evaluating whether the fund’s historical performance justifies the higher fee compared to ETFs with lower fees.
• Diversification and Strategy: Understanding the fund’s diversification approach and risk management to assess its overall value.
• Alternatives: Exploring other halal investment options that offer competitive returns while aligning with our values and a lower fee.
• Investment Horizon: Factoring in our long-term investment goals and how the fee difference might impact our returns over time.

Balancing fees and returns, along with considering the option of brokers offering a management fee of 0.75%, remains a significant consideration

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You need to look at the fees on the BROKER website, not the HSBC website.

e.g. AJBell fee for this fund is less than the 0.939%

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