Stocks and other assets

Are ETFs halal?

Answered by the ShariaQuant team

An ETF is a basket, so the ruling depends on what is in it and how the fund is built. A physically backed fund tracking a screened index can pass, while a synthetic ETF that gets its exposure through a swap contract rather than owning the assets fails on the wrapper alone.

What you actually own

This is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.

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