Question:

Could you please advise if it is permissible to invest in the following Shariah-compliant  investment funds?

• Manulife SP Funds Shariah S&P 500 ETF Fund:https://digital.lipperweb.com/mfcgrs/mprofile?symbol=68661403&lang=EN#Profile
• Manulife SP Funds Dow Jones Global Sukuk ETF Fund: https://digital.lipperweb.com/mfcgrs/mprofile?symbol=68661404&lang=EN#Profile
• https://www.wealthsimple.com/en-ca/quote/neo/wshr

Answer:

In the Name of Allāh, the Most Gracious, the Most Merciful.

As-salāmu ʿalaykum wa-raḥmatullāhi wa-barakātuh.

At this time, Darul Iftaa Canada does not review investment companies or products. However, we will provide you with some general guidelines this topic.

ETFs (exchange-traded funds) are funds that are traded on a stock exchange. While ETFs can be utilized for a number of purposes, they are essentially an investment vehicle.[1] The permissibility of an ETF is depending on its underlying assets, which can range from less than 25 stocks to over 7,000.[2]

The conditions for the permissibility of a stock have been laid out in this fatwā. Please refer to it for further information.

May Allāh bless you with abundant, ḥalāl rizq.

And Allāh Taʿālā Knows Best

Muftī Mohammed Wahaajuddin
Farmington Hills, Michigan, USA

Checked and Approved by:

Muftī Faisal bin Abdul Hamīd al-Mahmūdī
Darul Iftaa Canada (www.fatwa.ca)

[1] https://www.islamicfinanceguru.com/articles/investment/the-complete-guide-to-halal-etf-investing-for-muslim-investors?utm_source=pocket_saves

[2] https://www.schwab.com/etfs/types#:~:text=Some%20ETFs%20allow%20companies%20of,than%2025%20to%20over%207%2C000.