Shariah-Compliant ETF Directory · 2026

Halal ETFs for UK & US Muslims

A reference directory of Shariah-compliant Exchange Traded Funds screened against AAOIFI standards — curated for Muslim investors comparing options across the LSE, NASDAQ, and NYSE Arca.

24

Funds

9

Providers

LSE · US · CA

Exchanges

AAOIFI

Screening

The Listing

24 Shariah-compliant funds · click a row for details

What is Halal (Shariah-Compliant) Investing?

Core principles, prohibited industries, and the two-stage screening process.

Halal investing refers to investing in a manner consistent with Islamic law (Shariah). The core principle is the prohibition of riba (interest or usury), which rules out conventional bonds, savings accounts, and companies that derive significant revenue from lending at interest.

Beyond riba, Islamic finance prohibits investment in companies involved in haram (forbidden) industries: alcohol, tobacco, conventional financial services, weapons and defence, gambling, pork products, and adult entertainment.

Halal ETFs apply a two-stage screening process. The first stage is sector screening — removing companies in prohibited industries. The second is financial ratio screening — filtering out companies with debt, interest income, or liquid assets exceeding defined thresholds (typically per AAOIFI standards).

Any residual impure income within the fund must be purified by donating the proportionate amount to charity. Many fund providers publish purification ratios to assist investors in calculating this.

Screening Criteria

Criteria commonly used by Shariah-compliant ETF providers. Thresholds may vary slightly between providers and their Shariah supervisory boards.

Prohibited Sectors

  • Alcohol & tobacco
  • Conventional banking & insurance
  • Weapons & defence
  • Gambling & casinos
  • Pork & related products
  • Adult entertainment

Financial Ratio Screens

  • Debt / Market Cap < 33%
  • Cash & interest-bearing / Market Cap < 33%
  • Accounts receivable / Market Cap < 33%
  • Interest income / Total revenue < 5%
  • Haram revenue / Total revenue < 5%

Purification

  • Residual impure income donated to charity
  • Provider publishes purification ratio per unit
  • Investor calculates proportionate donation
  • Typically a very small % of dividends

Why ETFs for UK Muslim Investors?

The practical case for using ETFs within a halal UK portfolio.

Low Cost
Halal ETFs typically carry Total Expense Ratios (TERs) between 0.49% and 0.85% — significantly cheaper than actively managed Islamic funds.
ISA & SIPP Eligible
Most LSE-listed halal ETFs can be held in a Stocks & Shares ISA or SIPP, allowing UK Muslims to invest tax-efficiently.
Diversification
A single halal ETF can provide exposure to hundreds of Shariah-screened companies across multiple geographies and sectors.
Transparency
ETF holdings are published daily. Investors can verify Shariah compliance themselves and calculate purification amounts accurately.

Frequently Asked

Common questions from UK Muslim investors exploring Shariah-compliant ETFs.

Disclaimer

Not financial advice. HalalETFs.co.uk is an independent informational website. Nothing on this site constitutes financial, investment, tax, or legal advice. The information provided is for general educational purposes only.

Not Shariah advice. The Shariah compliance status of any fund listed on this site is based on publicly available information from fund providers and index methodologies. We are not Islamic scholars. Always consult a qualified Islamic scholar or Shariah supervisory board before making investment decisions based on religious grounds.

Accuracy. Fund data including TERs, AUM, and certification details may change. Always verify current information directly with the fund provider via their official factsheet or KIID (Key Investor Information Document).

Regulatory status. HalalETFs.co.uk is not authorised or regulated by the Financial Conduct Authority (FCA). Investments can fall as well as rise in value. You may get back less than you invest. Past performance is not a reliable indicator of future results.