New Jersey-based Javelin Investment Management has decided to shut down its Shariah-focused Islamic exchange traded fund offering after failing to attract key assets.

"With over seven million Muslims in the United States, we believe that shariah-based investing has a promising future. But we found it difficult to reach target investors through the marketing channels typically used by ETFs," Brint Frith, Javelin president and founder, said in a statement.

The JETS Dow Jones Islamic Market International Index Fund was launched in July last year.

The closure, scheduled for 19 October, leaves Javelin with one other ETF product, the JETS Contrarian Opportunities Index Fund, which was launched in April this year. The company said that the Contrarian fund is getting attention and that future funds developed will likely be along its line of solutions. The said fund consists of stocks identified as underperforming in the recent years but still with strong fundamentals.

The wealth and investment management industries have witnessed a proliferation of Shariah-compliant products in recent years, tapping into rising affluence among Muslim populations in the Middle East, parts of Southeast Asia and elsewhere. Such products are designed to avoid breaking rules prohibiting usury and gambling, and also avoid sectors such as alcohol.