Azzad Ethical Fund
(Ticker: ADJEX) Mid-cap Stock Fund
Fund Overview
Objective
The Azzad Ethical Fund seeks total return, which includes income from dividends and Growth of capital appreciation of stocks. The Fund invests in mid-cap companies included in the Russell Midcap® Growth Index and screened for compliance with the firm’s ethical investment restrictions.
Strategy
The Fund invests in U.S. mid-cap growth companies passing the Adviser’s Islamic screens and that, according to the portfolio managers, demonstrate profitability, balance sheet strength and attractive valuations.
Why Invest in Mid-Cap Stocks?
US mid-sized companies typically possess the innovation and growth potential of small-cap companies, but with the capital structure of large-cap companies. We believe mid-cap companies are an investment “sweet spot” in the U.S. economy. Whereas most Islamic funds focus on large-cap stocks, the Azzad Ethical Fund provides exposure to this sometimes underutilized asset class.
Top 10 Holdings
As of 3/31/2025
| COSTAR GROUP, INC. | 4.46% | ||
| CADENCE DESIGN SYSTEMS, INC. | 3.61% | ||
| HEICO CORPORATION | 3.18% | ||
| HOWMET AEROSPACE INC. | 2.90% | ||
| QUANTA SERVICES, INC. | 2.89% | ||
| FASTENAL COMPANY | 2.69% | ||
| VEEVA SYSTEMS INC. | 2.57% | ||
| IDEXX LABORATORIES, INC. | 2.54% | ||
| CENCORA INC. | 2.34% | ||
| TYLER TECHNOLOGIES, INC. | 2.30% | ||
| Holdings are as of the date indicated and subject to change. This list may exclude cash. | |||
| Number of Securities | 61 | ||
EQUITY STYLE MAP
Style Maps estimate characteristics of a fund’s equity holdings over two dimensions: market capitalization and valuation.
Fund Information
As of 3/31/2025
Ticker Symbol
ADJEX
CUSIP
055060206
Inception Date
12/22/2000
Minimum Initial Investment
$1,000 ($500 for IRAs)
Net Expense Ratio
0.99%
Gross
1.14%
Maximum Sales Charge
None
Investment Style
U.S, Mid-Cap Growth
Average Market Cap
$20.421 Billion
Risk of this Category
Azzad Ethical Fund Year 2024
Payout Per Share | Long Term Capital Gain Record Date | Long Term Capital Gain Payable Date |
0.866 | 10/31/2024 | 12/13/2024 |
AVERAGE ANNUAL TOTAL RETURNS (%)
As of month-end 03/31/2025
| FUND | RUSSELL MIDCAP GROWTH | |
| 3 Month | -8.53% | -7.12% |
| YTD | -8.53% | -7.12% |
| 1 Year | -14.17% | 3.57% |
| 3 Year | -1.10% | 6.16% |
| 5 Year | 9.42% | 14.86% |
| Since Inception | 6.01% | 8.15% |
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
Returns for less than one year are not annualized. Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
The Russell MidCap Growth Index measures the performance of mid-sized US companies with higher price-to-book ratios and higher forecasted growth values. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.
SECTOR DIVERSIFICATION (AS % OF TOTAL PORTFOLIO)
As of month-end 3/31/2025
| FUND | RUSSELL MIDCAP GROWTH | |
| Consumer Defensive | 0.00% | 5.77% |
| Healthcare | 20.11% | 11.12% |
| Utilities | 0.00% | 2.63% |
| Communication Services | 1.33% | 8.87% |
| Energy | 0.00% | 3.67% |
| Industrials | 23.53% | 8.38% |
| Technology | 34.60% | 29.82% |
| Basic Materials | 1.70% | 2.06% |
| Consumer Cyclical | 12.59% | 10.71% |
| Financial Services | 1.46% | 14.31% |
| Real Estate | 4.66% | 2.66% |
Sector allocations are subject to change without notice.
VOLATILITY MEASURES (%)
As of 3/31/2025
| VS BENCHMARK | 3 YEAR | 5 YEAR | 10 YEAR |
| Beta | 0.95 | 0.95 | 0.96 |
| R-squared | 92.12 | 93.63 | 94.57 |
| Standard Deviation | 21.90 | 21.39 | 18.48 |
| Sharpe Ratio | -0.38 | 0.49 | 0.35 |
Management
Halal Investment Philosophy
Investment Adviser & Portfolio Management
Azzad Asset Management, an investment advisory firm established in 1997, is investment adviser to the Azzad Funds. The firm is committed to helping clients manage their money according to a disciplined, socially responsible investment philosophy based on faith-based values. Kimberly Scott, CFA® and Bradley Halverson, CFA® from Delaware Funds by Macquarie provide portfolio management for the Azzad Ethical Fund. The portfolio management team uses a time-tested process to identify Greenfield Growth, Stable Growth and Unrecognized Growth companies it believes can provide opportunities for long-term outperformance.
Invest Today
To purchase the Fund, contact your financial professional or call us at 888.86.AZZAD. The Fund is available on many brokerage platforms including Schwab and Fidelity.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and summary prospectus. Investors should read the prospectus and summary prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Medium‑capitalization stocks held by the Fund could fall out of favor and returns would subsequently trail returns from the overall stock market. The performance of such stocks also could be more volatile than large‑capitalization stocks. Medium‑cap companies are more likely to have more limited product lines, fewer capital resources and less depth of management than larger companies. Growth stocks can react differently to issuer, political, market, and economic developments than the market, and other types of stocks. The stocks of such companies can therefore be subject to more abrupt or erratic market movements than stocks of larger, more established companies or the stock market in general. Please read the fund’s prospectus for more information about these and other risks.
Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. The Index’s returns assume reinvestment of all distributions and dividends.
