Dow Jones Indexes is licensing one of its indices for use in the first-ever Islamic exchange-traded fund.

The firm announced today that it has licensed its Dow Jones Islamic Market Turkey Index to Family Finans House — the largest, non-interest banking service in Turkey — as the underlying index for an ETF which is expected to be launched on the Istanbul Stock Exchange later this year. The launch remains pending regulatory approval of the Capital Markets Board of Turkey.

The Dow Jones Islamic Market Turkey Index, which is up 20% this year as of Nov. 1, is the first index of Islamic-compliant stocks that will be used anywhere in the world as the underlying for an ETF. It was created for investors who wish to invest according to Islamic investment rules. The index is part of the Dow Jones Islamic Market index series and tracks stocks traded on the Istanbul Stock Exchange that are compatible with Islamic investment guidelines.

Excluded from the index are stocks of companies that are involved in: alcohol, tobacco, pork-related products, financial services, defense/weapons, and entertainment. Also excluded are companies that fail any of three financial ratios: total debt divided by trailing 12-month average market capitalization is greater than or equal to 33% or more; cash plus interest-bearing securities divided by trailing 12-month average market capitalization is greater than or equal to 33%; and accounts receivables divided by total assets is greater than or equal to 33% or more.

“Licensing this index as the underlying for an ETF will give Islamic investors access to the performance of the Turkish market, which presents a well-developed corporate landscape among emerging countries,” said Lars Hamich, managing director of STOXX Ltd., the joint venture that is responsible for Dow Jones Indexes’ business development in Europe, Asia and the Middle East. “We expect interest from Turkish investors who would like to invest according to their needs and religious principles, as well as from international market participants with a large clientele for Islamic investing.”