KraneShares Wahed Alternative Income Index ETF(AMEX:KWIN)

KWIN invests in companies perceived to meet Shariah requirements and Islamic principles, excluding those involved in conventional finance, alcohol, pork, tobacco, gambling, gaming, weapons, adult entertainment, and most media/entertainment. The fund takes long positions in US equities and uses a business activity screen to exclude companies based on industry classification that determines involvement in non-permissible activities. A financial ratio screen excludes those not meeting the financial leverage ratio requirement. The fund also excludes dividend-paying stocks and companies deriving 5% or more of their revenue from such activities or practices. To generate additional income, the fund creates synthetic short positions at a ratio of about 1:1 to its long positions through FLEX options. Option income is generated from the difference between the amount received for the call option and the price paid for the put option. The index is rebalanced and reconstituted quarterly.