• ICP Web

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

Answer:

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:

https://daruliftabirmingham.co.uk/halal-investments-into-shares/

https://daruliftabirmingham.co.uk/day-trading-stocks-shares-via-broker-mobile-apps/


For more details regarding investing in stocks, you may also study the following book:

https://theislamicestablishment.com/29/2595/issue-of-shares


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

2 views0 comments

Recent Posts

See All

Dog Walker Job

Question: My son wants to earn a bit of pocket money by walking some dogs in the neighborhood (especially for some of the more elderly neighbors who have pets as companions). In any case, is this Isla

Buying and Selling Stocks

Question: I would like to know about the stock. Is stock buy and sell haram or halal? Is stock capitalism? بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم In the name of Allah, the Most Gracious, the Most Mercifu

Al-Rayyan bank

Question: What is the ruling on using al rayan bank for mortgage? If it is not permissible which route can someone take to owning a home in the uk using halal methods? بِسْمِ اللهِ الرَّحْمنِ الرَّحِ

ADDRESS

920 W PFLUGERVILLE PKWY

PFLUGERVILLE, TX 78660

© 2020 by Islamic Center of Pflugerville