investing in ETF is allowed ?
Question: What are the sharia compliance criteria for ETFs and index funds and evaluating companies for investment holdings? Are market tracking ETFs (like SPY and so on) halal? If not, what are alternative but still effective ways to benefit from index-tracking funds? I would appreciate it if these questions are addressed or if we are provided with some resources that can be used as guidance to navigate through these issues InshaAllah. بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم In the name of Allah, the Most Gracious, the Most Merciful
Before investing in stocks or trading them, there are general guidelines/principles to take into consideration. Our Darul Ifta has shed light on this subject, hence you may refer to the following links:
For more details regarding investing in stocks, you may also study the following book:
Also, we suggest visiting https://thzeal.com/, a Shariah-compliant trading platform, that has been approved by scholars, for investing in the stock market.
Only Allah knows best
Written by Maulana Mohammad Ahsan Osmani Checked and approved by Mufti Mohammed Tosir Miah Darul Ifta Birmingham