Are ETFs halal?
The ETF wrapper is neutral. Compliance depends on what the fund holds and how it is structured - not on the fact that it trades on an exchange.
An ETF that tracks a Shariah-screened index, is certified at fund level and applies purification is a different proposition from a general ethical or ESG ETF, which screens on different criteria and has no Shariah board.
Things worth checking on any ETF described as compliant: the screening standard named in the PDS, whether the certificate covers this fund or only the manager, whether a purification rate is published, and whether the fund uses synthetic exposure or physical holdings.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.
