Financial data vendor Thomson Reuters, who has over $2bn in exchange-traded fund assets linked to its indices, has launched the Islamic Asia Pacific Ex-Japan Islamic Agribusiness Index. The index covers 30 Shariah-compliant companies in the Asia Pacific region with revenues derived directly from agricultural products. It will be tracked by the MyETF Thomson Reuters Asia Pacific ex-Japan Islamic Agribusiness ETF (METAGR), launched on the Malaysian Stock Exchange by provider i-VCAP Management.

The MyETF Thomson Reuters Asia Pacific ex-Japan Islamic Agribusiness ETF (METAGR) is the first agricultural-related Islamic ETF available globally and the first Islamic sector ETF available in the Asia-Pacific region.

The Thomson Reuters Islamic Asia Pacific Ex-Japan Agribusiness Index combines Thomson Reuters transparent rules-based methodology with IdealRatings’ expertise and research-based approach to Shariah-compliant screening. The index uses Thomson Reuters Business Classification to select companies engaged in upstream agricultural activities. It is the first index of its kind in the Asia Pacific region.

“Thomson Reuters is delighted to add the Islamic Asia Pacific Ex-Japan Agribusiness Index to our suite of Islamic indices,” commented Stephan Flagel, Head of Indices at Thomson Reuters. “The index provides rules-based, liquid and transparent exposure to companies within the fast growing Asian Agribusiness sector. Bringing the efficiency and transparency expected in advanced financial markets to the rapidly growing Islamic finance industry requires the provision of deep and reliable market indicators, benchmarks and terms and conditions”

The ETF tracking the index is the first agricultural-related Islamic ETF available globally and the first Islamic sector ETF available in the region.