The best halal ETFs in 2026: fees, screening, and how to choose
There are now more Shariah-compliant Exchange Traded Funds (ETFs) than ever but they don’tall follow the same rulebook, and they definitely don’t all charge the same fees. Here’s aclear-eyed comparison of the major halal ETFs available in 2026, and how to pick the right mixfor your portfolio. Written by the Manzil Team Not long ago, “halal investing” meant either painstakingly screening stocks yourself or settlingfor one or two expensive mutual funds. That era is over. Today, Muslim investors can build afully diversified, Shariah-compliant portfolio, U.S. equities, global stocks, real estate, even fixedincome , entirely with low-cost ETFs. But more choice brings a new problem: the funds look similar on the surface while differing inways that matter. Different certifiers apply different financial-ratio screens, so the same companycan appear in one halal ETF and be excluded from another. Fees range from 0.40% to 0.65% ,a gap that quietly compounds into real money over decades. This guide breaks down what’sactually available and how to compare. First, a quick refresher: what makes an ETF halal? A halal ETF tracks an index screened according to Shariah principles. Sectors like conventionalbanking and insurance, alcohol, gambling, tobacco, weapons, and adult entertainment areexcluded outright, and the remaining companies must pass financial ratio tests , typicallykeeping interest-bearing debt and interest income below defined thresholds. Any incidentalimpermissible income is disclosed so investors can purify it through charitable giving. This is also why popular conventional funds like VOO, SPY, and QQQ don’t qualify: they holdbanks, alcohol producers, and interest-bearing cash alongside everything else. And onecategory is off the table entirely, leveraged ETFs, which use debt and derivatives to amplifyreturns, are considered impermissible regardless of what they hold. How we compare halal ETFs Five things matter most when evaluating any halal ETF: Certification and methodology. Who screens the index, and against what standard? AAOIFI isthe most widely recognized benchmark, but certifiers interpret ratios differently, which is whyfund holdings diverge. Expense ratio. The annual fee you pay, every year, regardless of performance. Smalldifferences compound: on steady contributions over 30 years, a 0.15% fee gap can cost aninvestor tens of thousands of dollars. Breadth of holdings. More holdings generally means better diversification and lesssingle-stock risk. Some halal funds hold 100 companies; others hold 600+. Scale and liquidity. Larger funds with tighter bid-ask spreads are cheaper to trade and lesslikely to close. Purification burden. How much of the fund’s income needs to be donated to cleanse incidentalnon-compliant revenue. Funds report this; the lower, the simpler your life. Table 2 : Liquidity, risk, guarantees and tax features The major halal ETFs at a glance Expense ratios sourced from fund issuers, August 2026. U.S. equity: the core of most portfolios MNZL , Manzil Halal USA Broad Market ETF (0.40%). The lowest-cost halal equity ETF on theU.S. market, and the broadest. MNZL tracks the Russell IdealRatings Manzil Halal USA BroadMarket Index , built from the Russell 1000, screened to AAOIFI standards , giving investorsexposure to roughly 600 U.S. large- and mid-cap companies. It’s also the only fund on this listwith an additional human rights screen, applying American Friends Service Committee criteria toexclude companies complicit in grave violations. If you want maximum U.S. market coverage atminimum cost, with values screening that goes beyond the standard exclusions, this is the oneto beat. SPUS , SP Funds S&P 500 Shariah Industry Exclusions ETF (0.45%). The largest halal ETFby assets and the most established of the U.S. options. It holds the roughly 200 S&P 500companies that pass the S&P Shariah screen. Deep liquidity and a multi-year track record areits calling cards; the trade-off is a narrower, more concentrated portfolio than a broad-marketfund. HLAL , Wahed FTSE USA Shariah ETF (0.50%). The pioneer , launched in 2019 as one of thefirst U.S.-listed halal ETFs. It tracks the FTSE Shariah USA Index. A solid fund, though it nowcosts more than both MNZL and SPUS for similar U.S. large-cap exposure. Going global SPWO (0.45%) covers international markets , developed ex-U.S. and emerging markets in a50/50 blend , making it a natural companion to a U.S. core holding. UMMA (0.65%) offers asimilar international mandate via the Dow Jones Islamic Market International Titans 100, but it’sthe most expensive fund on this list and holds only about 100 companies. Income and specialty SPSK (0.50%) is the closest thing to a “halal bond fund”: a portfolio of investment-grade,dollar-denominated sukuk that can steady a portfolio the way conventional bonds do , withoutthe interest. SPRE (0.50%) holds Shariah-compliant global REITs for real estate exposure andincome. SPTE (0.55%) concentrates on global technology; just be aware that most halal equityfunds are already tech-heavy, so a dedicated tech fund is a tilt, not a diversifier. It has also carried one of the higher purification burdens among these funds , worth checking before youbuy. Putting it together You don’t need all eight. Most investors can build a complete halal portfolio with two or threefunds: Whatever mix you choose, favour broad, certified, low-cost funds for the core , and rememberthat the expense ratio is the one variable you control completely. A note for Canadian investors: these are U.S.-listed ETFs, and all are purchasable throughmost Canadian brokerages. On the TSX, the Wealthsimple Shariah World Equity Index ETF(WSHR) is the main domestic option for global halal equity exposure. The bottom line The halal ETF market has matured to the point where cost and quality , not scarcity , drive thedecision. The Manzil Halal USA Broad Market ETF (MNZL) was built for exactly this moment:the broadest U.S. halal equity exposure available, AAOIFI-certified with an annual ShariahCompliance Certificate, a human rights screen no peer offers, and the lowest fee in its class at0.40%. Faith-aligned investing no longer asks you to compromise on diversification, cost, or conviction.Pick your funds, automate your contributions, and let the market do the rest. Learn more about MNZL, including holdings and documents, at manzilfunds.com. CTA: Download Manzil Invest This article is for information purposes only and does not constitute financial, legal, tax, orreligious advice. Fund details, including expense ratios, are as of August 2026 and
A Beginner’s Guide to Halal Investing in North America
If you are a Muslim investor in North America, you may have found yourself asking: Can I invest? And if so, how do I do it without compromising my faith? The answer to the first question is yes. Islamic scholars broadly agree that building and growing wealth through ethical, productive investment is not only permissible — it is encouraged. The key is how you invest. What Makes an Investment Halal? Halal investing involves placing capital into businesses and operations that align with Islamic law while steering clear of prohibited ones. Every Muslim investor should be guided by four foundational rules: shunning riba (usury or interest), steering clear of gharar (extreme ambiguity or gambling-like risk), completely avoiding prohibited (haram) sectors, and backing tangible economic assets instead of engaging in mere financial speculation. In practice, this means screening out companies involved in alcohol, tobacco, gambling, conventional banking, weapons manufacturing, and other prohibited sectors. It also means reviewing a company’s financial ratios, ensuring it is not overly reliant on interest-bearing debt or earning significant income from impermissible sources. What to Avoid Conventional bonds are haram because they involve lending money to an issuer in exchange for regular interest payments — a direct form of riba. Similarly, standard savings accounts, certificates of deposit, and margin accounts that charge interest on borrowed funds are not Shariah-compliant. What Is Available to You The good news is that options are growing. Shariah-compliant equities, halal ETFs, and Islamic investment platforms have expanded significantly in recent years, making values-aligned investing more accessible than ever before in North America. The Manzil Russell Halal USA Broad Market ETF (MNZL) was built specifically for this moment. Listed on the Nasdaq under the ticker $MNZL, it offers diversified exposure to rigorously screened U.S. large- and mid-cap equities, combining AAOIFI Shariah compliance with an AFSC human rights overlay, all in a single, transparent, exchange-traded fund. You no longer have to choose between growing your wealth and staying true to your values. To learn more about the objectives and risks of MNZL and to obtain a prospectus, scroll to the Important Information section at the bottom of this page. Read the prospectus carefully before investing. ETFAC-5548998-07/26Read the prospectus at manzilfunds.com.
From the Nasdaq Floor to Your Portfolio: The MNZL ETF
The launch of the Manzil Russell Halal USA Broad Market ETF (Ticker: MNZL) marked asignificant moment for Islamic finance in North America. Dr. Mohamad Sawwaf, Manzil’sCEO appeared on the Nasdaq “Just for Funds” segment to discuss the fund’s launch andManzil’s expansion into the United States. Who Is MNZL For? MNZL is designed for investors who want their portfolio to reflect both their financial goals andtheir values. Muslim Investors Seeking Shariah-Compliant Options: For Muslim investors, MNZL offers arigorously screened, accessible entry point into the U.S. equity market, without compromising onIslamic finance principles. Whether you are building long-term wealth, saving for retirement, orestablishing a core portfolio holding, MNZL is designed to help keep your investments alignedwith your faith. Ethically Minded Investors MNZL’s dual-screening process: Combining AAOIFI Shariahstandards with an AFSC human rights overlay, also appeals to investors who prioritize investingethtically, regardless of religious affiliation. If you believe your capital should not support humanrights violations, weapons manufacturing, tobacco, or predatory financial practices, MNZL’smethodology aligns with those convictions. Investors Seeking Broad U.S. Market Exposure MNZL draws from the Russell 1000®universe of large- and mid-cap U.S. equities, making it suitable as a diversified core holding forinvestors seeking broad domestic market participation through a single, transparent, low-costinstrument. The Screening of MNZL Many investors in the North American Muslim community have had limited access todiversified, Shariah-compliant equity options. MNZL is built on a three-layer screeningmethodology. ● Layer 1: Shariah Compliance: Every holding must pass AAOIFI-guided businessactivity and financial ratio screens, excluding prohibited sectors and companies withinterest-bearing debt exceeding 30% of average market capitalization, or impermissibleincome above 5% of total revenue.● Layer 2: Ethical Overlay: An AFSC human rights screen removes companies with demonstrated links to apartheid, ethnic cleansing, or grave human rights violations.○ Strategic Index Design: Drawing from the Russell 1000®, MNZL accesses bothlarge- and mid-cap U.S. equities to pursue broader diversification than narrowlarge-cap-only Halal funds. Note*Individual holdings are capped at 10% at each quarterly rebalance. Where Is MNZL Accessible and Tradable? MNZL is listed on the Nasdaq Stock Exchange under the ticker symbol MNZL, making itaccessible through most major brokerage platforms in the United States. As an exchange-traded fund, MNZL trades like a stock — meaning you can buy or sell sharesthrough any brokerage account that provides access to Nasdaq-listed securities. This includesmany widely used retail and self-directed investment platforms. For investors outside the United States, availability will depend on your country of residence andthe platforms accessible in your jurisdiction. We encourage you to check with your local brokeror financial advisor to confirm access. To learn more or to read the full prospectus before investing, visit manzilfunds.com. Important Disclosures: To learn more about the objectives and risks of MNZL and toobtain a prospectus, scroll to the Important Information section at the bottom of this page.Read the prospectus carefully before investing. ETFAC-5548998-07/26 Read the prospectus at manzilfunds.com.
The 1% vs. 25% Gap: Why Shariah-Compliant Assets Are Underrepresented Globally
There is a striking imbalance at the heart of global finance. One that affects billions of people and remains largely unaddressed. The world’s Muslim population surpassed 2 billion in 2023, accounting for over 25% of the global population. DinarstandardStandard Chartered Yet the financial products designed to serve them tell a very different story. In 2024, the Islamic finance industry surpassed $5 trillion in global assets, a 12% rise from 2023 and a 43% increase from 2020. Significant growth, but still a small fraction of the hundreds of trillions that make up global financial markets. Standard Chartered Islamic Banking Financial Institutions Report. The gap is not a reflection of disinterest. It reflects decades of limited access: few exchange-listed products, narrow index coverage concentrated in large-cap equities, and an infrastructure primarily built around the Gulf and Southeast Asia. For the millions of Muslim investors in North America, accessible and rigorously screened Halal investing alternatives have been hard to find. The momentum is shifting. Global Islamic finance assets are projected to reach $7.5 trillion by 2028, driven by a young, growing Muslim population and rising global demand for ethical, values-aligned finance. https://www.sc.com/en/press-release/standard-chartered-global-islamic-finance-assets-to-sur pass-usd-7-5-trillion-by-2028/ The Manzil Russell Halal USA Broad Market ETF (MNZL) was built for this moment, bringing a diversified, AAOIFI-screened, Nasdaq-listed investment to investors who have long deserved better options. To learn more about the objectives and risks of MNZL and to obtain a prospectus, scroll to the Important Information section at the bottom of this page. Read the prospectus carefully before investing. ETFAC-5548998-07/26 Read the prospectus at manzilfunds.com Sources are drawn from Standard Chartered’s 2025 Islamic Banking Report and the DinarStandard SGIE Report 2024/25.
The Overlap Between Islamic Finance and ESG: It Is More Similar Than You Think
When most people hear “Environmental, Social, and Governance (ESG) investing,” they think of a modern, secular movement driven by corporate governance and climate concerns. When they hear “Islamic finance,” they think of faith-based rules rooted in centuries of scholarship. On the surface, these two worlds seem entirely separate. But if you look closer, the overlap is striking! Both Islamic finance and ESG investing are built on a foundational premise: that capital should not simply grow; it should do good, or at minimum, do no harm. Both approaches use negative screens to exclude industries whose activities conflict with their values and in many cases, these screens overlap. Tobacco, alcohol, and gambling are excluded under both Shariah compliance and many ESG mandates. Standard Chartered Both frameworks prioritize long-term sustainability over immediate profits, rooted in the core belief that investments should generate positive social impact alongside financial returns. That is precisely why the Manzil Russell Halal USA Broad Market ETF (MNZL) was designed with a dual-screening process — combining AAOIFI Shariah compliance with an AFSC human rights overlay. The result is a portfolio that speaks to both communities: investors driven by faith, and investors driven by conscience. For a growing number of people, those two things are the same. To learn more about the objectives and risks of MNZL and to obtain a prospectus, scroll to the Important Information section at the bottom of this page. Read the prospectus carefully before investing. ETFAC-5548998-07/26 Read the prospectus at manzilfunds.com. Statistical and analytical claims are drawn from Standard Chartered and a published academic/industry comparison. Maintain source documentation in compliance records.