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:ย 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 Allฤh, the Most Gracious, the Most Merciful.
As-salฤmu สฟalaykum wa-raแธฅmatullฤhi wa-barakฤtuh.
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 fatwฤ. Please refer to it for further information.
May Allฤh bless you with abundant, hฬฃalฤl rizq.
And Allฤh Taสฟฤlฤ Knows Best
Muftฤซ Mohammed Wahaajuddin
Farmington Hills, Michigan, USA
Checked and Approved by:
Muftฤซ Faisal bin Abdul Hamฤซd al-Mahmลซdฤซ
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.