Best Halal ETFs in 2026

Why ETFs Are Ideal for Halal Investors

Exchange-traded funds (ETFs) offer Muslim investors a powerful way to build a diversified, Sharia-compliant portfolio. Unlike picking individual stocks, halal ETFs are professionally screened by Sharia boards — removing the burden of individual company analysis.

The key advantages of halal ETFs:

• Instant diversification across dozens or hundreds of halal companies
• Professional Sharia screening — no need to screen each stock yourself
• Low cost — most halal ETFs have competitive expense ratios
• Liquidity — trade on stock exchanges like individual stocks

What Makes an ETF Halal?

A truly halal ETF must:

1. Be supervised by a qualified Sharia board
2. Exclude companies in haram industries (banks, alcohol, weapons, adult entertainment, gambling)
3. Screen out companies with excessive debt or interest income
4. Have a purification process for any residual non-compliant income

Warning: Many regular ETFs (like SPY or QQQ) are often mistakenly called "halal" by investors who only consider the industry type. True halal ETFs must have formal Sharia certification.

Top Halal ETFs for 2026

ETFs to Avoid

These popular ETFs are not halal and should be avoided by Muslim investors:

• SPY / VOO / IVV — S&P 500 funds with no Sharia screening (include banks, alcohol, etc.)
• QQQ — Includes Meta, Alphabet with content concerns; not Sharia-screened
• AGG / BND / TLT — Bond ETFs are pure riba (interest) — completely haram
• XLF — Financial sector ETF — almost entirely riba-based companies
• Any REIT ETF — Most real estate investment trusts use interest-based financing

Building a Complete Halal Portfolio with ETFs

Here's a sample halal portfolio allocation using ETFs:

• 50% HLAL or SPUS — Core US equity exposure
• 20% International halal equity — Seek a global Sharia ETF
• 15% GLD or IAU — Gold as an inflation hedge
• 10% Sukuk (Islamic bonds) — Sharia-compliant bonds
• 5% Cash (Islamic savings account)

This portfolio avoids all riba, has meaningful diversification, and is fully Sharia-certified.

Where to Buy Halal ETFs

You can buy halal ETFs through any standard brokerage. However, for a fully halal experience, we recommend platforms that integrate Sharia compliance into the entire investment process:

• Wahed Invest — Offers HLAL and manages halal portfolios automatically
• TD Ameritrade / Fidelity / Schwab — Can buy HLAL, SPUS, GLD through self-directed accounts
• Zoya — Connects to your brokerage to screen your full portfolio

Bottom Line

For most Muslim investors, HLAL and SPUS are the best starting points for halal US equity exposure. Add GLD or IAU for gold, and consider AMANX if you prefer a professionally managed fund with a long track record.

Always verify current Sharia certification status directly with the fund provider, as compliance status can change.