English Abstract
A B S T R A C T:
In this paper, we aim to investigate the influence of the Covid-19 on the behavior of the S&P 1200
Shariah and non-Shariah sectoral indices over the period from 1st October 2010 to 29th October
2020. We contribute to the global literature by examining the financial impact of the Covid-19 on
the Shariah and non-Shariah sectoral indices. We find that the S&P 1200 Shariah Communication,
consumer staples, financials, healthcare, industrials, IT, materials, and utility sectors earn higher
average returns than their counterpart sectoral indices during the Covid-19 period. The study
reports that on average, the volatility of the Shariah indices is less than their counterpart indices.
Moreover, we further document that on average the S&P Shariah sectoral indices offer a higher
return with low risk even during the Covid-19 global pandemic. We suggest that ethical investments
are the best alternatives to retail, institutional, and foreign investors.
