Wahed Invest LLC (“Wahed” or the “Firm”) provides three primary types of services. It advises clients in a wrap fee program, advises exchange-traded funds, and provides financial planning services.
Wrap Fee Program Wahed charges a wrap fee to manage assets. A Wrap Fee (“Wrap Fee” or “Program Fee”) account is a professionally managed investment account in which expenses, including brokerage commissions, management fees, and administrative costs, are “wrapped” into a single charge.
Clients will pay Wahed a management fee, from which Wahed will pay transaction and other charges to third party service providers such as the account custodian. This arrangement creates a conflict of interest in that Wahed has an incentive to avoid transactions in the wrap account in order to avoid transaction charges. We mitigate this risk by assuring that appropriate transactions for rebalancing and other purposes are undertaken, regardless of costs to us.
Wahed’s Wrap Fee program provides clients portfolio management and brokerage services for one comprehensive fee based on a percentage of individual account assets. Wahed may buy or sell securities consistent with analysis designed to seek an investment return suitable to the investment objectives and goals of each distinct client. Each account is managed based upon the individual needs of the client. Wahed manages the accounts on a discretionary basis, which means that transactions are implemented by us without first contacting the client. Wahed’s Wrap Fee program is provided online through an interactive website at www.wahedinvest.com or the downloadable interactive mobile digital application (the “Website”).
Wahed determines a suitable proposed investment plan by performing a review of each client’s individual account and suitability parameters. This review may include type of account, investment objectives, overall financial condition, income and tax status, personal and business assets, risk tolerance, and other factors unique to the individual client’s situation. Based on client suitability parameters, Wahed will design, revise, and reallocate a client’s custom portfolio.
When a client enrolls in Wahed’s Wrap Fee program, they grant trading authority over their accounts to Wahed as described herein. Clients are not allowed to make trades in their accounts except as described herein. Clients authorize Wahed to suspend trading in their accounts if Wahed believes it necessary due to market conditions or other reasons and to reactivate trading when Wahed decides it is appropriate to do so. Clients also authorize Wahed to suspend trading in their accounts and/or access to the Website if Wahed believes it is necessary for reasons related to the Website or Wahed’s Wrap Fee program and to reactivate access and trading when Wahed decides it is appropriate to do so.
To invest with Wahed, a client must: 1.Complete an investor profile on the Website that describes the client’s financial needs, investment objectives, time horizon, and risk tolerance, as well as any other factors relevant to the client’s specific financial situation and any other supporting documentation the Program requires; 2.Complete the investment advisory wrap fee agreement (the “Agreement”) with Wahed; 3.Complete a new account agreement with Apex Clearing Corporation (“Apex”), or another broker-dealer Wahed approves for participation in the Program (Apex or such other participating broker-dealer, the “Participating Broker-Dealer”); and 4.Open a securities brokerage account (the client’s “Account”) with the Participating Broker-Dealer and deposit those assets designated for participation in the Program into the account.
Thereafter, all clients are encouraged to discuss their needs, goals, and objectives with Wahed and to keep Wahed informed of any changes thereto. Wahed will contact clients quarterly to determine whether their financial situation or investment objectives have changed, or whether they want to reasonably modify their Account. The Website allows clients to review information about Wahed’s Wrap Fee Program and monitor their portfolio’s allocation, activity, and performance The Participating Broker-Dealer acts as the qualified custodian and provides trade execution, clearing and related services for accounts. Each client’s investment plan will include a cash allocation at the Participating Broker-Dealer, which cash allocation will not earn interest.
As of March 20, 2024, Wahed had $125,344,606.83 assets under management in its Wrap Fee program.
Exchange-Traded Funds In addition to the Wrap Fee program described above, Wahed serves as the investment adviser to the Wahed FTSE USA Shariah ETF and Wahed Dow Jones Islamic World ETF, which is a passively managed fund that seeks to track the total return performance of the FTSE USA Shariah Index, and the Wahed Dow Jones Islamic World ETF, which is an actively managed fund that seeks long-term capital appreciation, each a series of a registered investment company and managed by Wahed (the “Wahed Funds”). Wahed will allocate the equity portion of client portfolios between the two Wahed Funds based upon its own discretion and evaluation of market conditions affecting the constituent securities in each of the related indices. Wrap Fee program clients generally are directed by Wahed to invest a portion of their account into securities of one or both of the Wahed Funds. Wahed will use an investment in the Wahed Funds for the portion of each Wrap Fee program account allocated to equities. The amount of each Wrap Fee program account invested in equities (which will be represented by interests in the Wahed Funds) will differ based upon the risk profile of each such account. For example, “Very Aggressive” Wrap Fee program accounts will have a greater interest in the Wahed Funds than “Very Conservative” Wrap Fee program accounts.
Wrap Fee program accounts with allocations to a Wahed Fund will not be charged a Program Fee with respect to the portion of their portfolio that is allocated to the Wahed Funds; provided, however, that the Firm reserves the right to charge a Program Fee to allocations made to the Wahed Funds in the future. Under certain instances, based on the fee structure of the Wrap Fee program account and the Wahed Funds, the management fee for the Wahed Funds is greater than the Wrap Fee otherwise charged to the client. Financial Planning Wahed offers financial planning services to clients with at least $100,000 in

investable cash and securities. The financial planning services provided by Wahed consist of providing, or having client provide, detailed financial data of the client to a third-party web-based technology platform, which will generate a financial plan based on that data (the “Financial Plan”). Wahed will then discuss the Financial Plan with the client including recommendations with respect to the advisability of the allocations set forth in the Financial Plan and suggestions of specific investments within those allocations that may help the client achieve their stated investment objectives and goals (the “Wahed Recommendations”). The Wahed Recommendations may include recommendations to invest in the Wahed Funds. A client is under no obligation to implement the Financial Plan or the Wahed Recommendations and is free to invest in securities not offered by, or affiliated with, Wahed.
Financial planning services and related investment recommendations end with the delivery of the Financial Plan and, as such, do not include ongoing monitoring. Fees Wrap Fee Program Fees Accounts are custodied at the Participating Broker-Dealer and charged a Wrap Fee. This Wrap Fee includes all portfolio management costs, trading costs, custodial costs, and operational costs.
There are no sales charges or commissions paid by the client. All portfolio management services offered in the program are provided by Wahed. Therefore, no portion of the annual fee is paid to outside portfolio managers. The Firm’s fee schedule is listed below. Fees are charged on a daily basis in arrears based on a percent (listed below) of the greater of the (i) current portfolio value or (ii) net liquidation value of the account. Our fees are payable daily on each date on which the qualified custodian is open for business. Fees are charged on the client level, meaning the sum of all accounts managed under a unique Social Security or Employer Identification Number is considered when calculating fees. Fees may be negotiable. Other than as described above, Wahed does not allow clients to prepay fees.
Wahed Wrap Fee Schedule Assets under mgmt.
Wahed Fee $100 - $99,999.79% $100,000 and over.49% Fee Comparison Under the Program, clients receive both investment advisory services and the execution of transactions for a single, combined annualized fee, the Program Fee. Participation in the Program may cost the client more or less than purchasing such services separately. The number of transactions made in the client’s accounts, as well as the commissions charged for each transaction, determines the relative cost of the Program versus paying for execution on a per transaction basis and paying a separate fee for advisory services. The Program Fee may be higher or lower than fees charged by other sponsors of comparable investment advisory programs.
Financial Planning Fee There is no fee for the financial planning services described above for clients with investable cash and securities of $100,000 or more.
Other Charges Other than its advisory fee described above and advisory fees with respect to the Wahed Funds, neither the Firm nor its employees receive or accept any direct or indirect compensation related to investments that are purchased or sold for Accounts. Wahed’s Wrap Fee is inclusive of all management fees, custodian fees, and transaction fees, except for any wiring, IRA, withdrawal or other miscellaneous Fees that are charged by the custodian, as more fully explained in the separate agreement between client and the custodian. Expenses charged by third-party ETF sponsors or mutual fund companies (including, without limitation, the Wahed Funds, except as otherwise expressly stated herein) are not included in the Wrap Fee. The broker-dealers, mutual fund companies, and other custodians who provide services for your account charge these fees (“third party fees”), and clients are responsible for payment of all third-party fees and expenses.
For these clients, it is important to note that the advisory fees paid to Wahed are separate and distinct from the maintenance fees and transaction expenses charged by these third parties (except with respect to the Wahed Funds, as expressly stated herein).
In addition, IRA customers will be responsible for paying a $7.50 quarterly fee charged by the trustee. This fee is charged to the account quarterly at the beginning of each calendar quarter.
Compensation of Persons Recommending the Wrap Fee Program Wahed performs advertising campaigns to attract Clients to open accounts on the site. These campaigns may include promotions such as additional account services or products, more favorable fee arrangements or waived advisory fees. In addition, Wahed may offer advisory Clients a reduction or waiver of advisory fees, or a cash payment, for referrals of friends, family or other members of their social circle. Wahed may also enter into referral agreements with third party investment advisers whereby Wahed pays a portion of the wrap fees paid by the referred Clients to such third-party investment advisers. As a result of this referral fee, such third party investment advisers have a financial incentive to recommend Wahed’s wrap fee program over other programs or services. In addition to the foregoing, Wahed has or expects to have referral arrangements in place with certain unaffiliated third parties that may act as solicitors and may from time-to-time refer potential Clients to Wahed. Each arrangement must be in compliance with Rule 206(4)-3 of the Investment Advisers Act of 1940. For each successful referral, Wahed will generally pay a commission based upon a percentage of the investment management revenue that Wahed charges and collects from the Client (and/or another payment upon certain growth goals being reached). The length of each arrangement may vary. Wahed also engages solicitors who are supervised persons from amongst its own personnel. In all cases, an affected potential Client is provided a copy of this brochure as well as the terms of the specific referral arrangement. As a result of such arrangements, such third parties may have a financial incentive to recommend Wahed’s wrap fee program over other programs or services. Clients are not charged any fee nor do they incur any additional costs for being referred to Wahed by a current Client or any other person. Other than as stated above, Wahed, or any related person, does not otherwise directly or indirectly compensate any person who is not our supervised person for Client referrals.