Halal ETFs for UK Muslims
A free, independent directory of Shariah-compliant Exchange Traded Funds (ETFs) available to UK investors. All funds listed are screened against AAOIFI standards or equivalent, excluding interest (riba), prohibited industries, and excessive leverage.
12+
Funds Listed
6
Providers
LSE & US
Exchanges
AAOIFI
Screening
| Ticker | Fund Name | Provider | Exchange | CCY | TER | AUM | Focus |
|---|---|---|---|---|---|---|---|
| ISWD | iShares MSCI World Islamic UCITS ETF | BlackRock (iShares) | LSE | USD | 0.60% | ~$1.2B | Global Developed Markets |
| ISDE | iShares MSCI EM Islamic UCITS ETF | BlackRock (iShares) | LSE | USD | 0.85% | ~$280M | Emerging Markets |
| HLAL | Wahed FTSE USA Shariah ETF | Wahed Invest | NASDAQ | USD | 0.50% | ~$250M | US Equities |
| UMMA | Wahed Dow Jones Islamic World ETF | Wahed Invest | NASDAQ | USD | 0.65% | ~$60M | Global Equities |
| SPUS | SP Funds S&P 500 Sharia Industry Exclusions ETF | SP Funds | NYSE Arca | USD | 0.49% | ~$800M | US S&P 500 |
| SPRE | SP Funds S&P Global REIT Sharia ETF | SP Funds | NYSE Arca | USD | 0.55% | ~$45M | Global REITs |
| AMAGX | Amana Growth Fund | Saturna Capital | NASDAQ | USD | 1.04% | ~$1.5B | US Growth Equities |
| ISUS | iShares MSCI USA Islamic UCITS ETF | BlackRock (iShares) | LSE | USD | 0.50% | ~$180M | US Equities |
| ISEU | iShares MSCI Europe Islamic UCITS ETF | BlackRock (iShares) | LSE | EUR | 0.60% | ~$90M | European Equities |
| IGLN | iShares Physical Gold ETC | BlackRock (iShares) | LSE | USD | 0.12% | ~$13B | Gold (Physical) |
| WGLD | WisdomTree Physical Gold | WisdomTree | LSE | USD | 0.15% | ~$3B | Gold (Physical) |
| HSBC MSCI World Islamic | HSBC MSCI World Islamic UCITS ETF | HSBC Asset Management | LSE | USD | 0.50% | ~$200M | Global Developed Markets |
What is Halal (Shariah-Compliant) Investing?
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.
Shariah Screening Criteria
The following criteria are commonly used by Shariah-compliant ETF providers. Thresholds may vary slightly between providers and their appointed 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 securities / Market Cap < 33%
- ▸Accounts receivable / Market Cap < 33%
- ▸Interest income / Total revenue < 5%
- ▸Haram revenue / Total revenue < 5%
Purification Requirements
- ▸Residual impure income must be donated to charity
- ▸Provider publishes purification ratio per unit
- ▸Investor calculates proportionate donation
- ▸Typically a very small % of dividends received
Why ETFs for UK Muslim Investors?
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 Questions
Common questions about halal ETF investing for UK Muslims.
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.