The best Sharia-compliant ETFs
How to invest in Sharia-compliant companies using ETFs
How do I invest in Sharia-compliant companies?
The Sharia includes all religious and legal principles, mechanisms for setting norms and rules for the interpretation of the Islamic belief. From the religious practice, rules which are applicable to investments in global capital markets can be derived.These rules can also be applied to indices. Since income from loans is considered incompatible with Sharia law, Western financial companies are usually excluded from such indices. Companies also have to demonstrate a certain degree of stability and therefore must not exceed defined limits of indebtedness or leverage. Additionally, there are several exclusion criteria for non-Sharia-compliant industries and sectors which are very similar to sustainable indices. As a result, Sharia-compliant indices contain a large number of companies from the healthcare and technology sectors. The index guidelines are monitored by an advisory board of renown Sharia experts.
In this investment guide, you will find ETFs that offer access to Sharia-compliant investment. Currently, there are 9 indices available tracked by 9 ETFs.
MSCI World Islamic performance
1 month: 2,39%
1 year: 16,17%
3 years: 36,60%
5 years: 70,29%
Sharia-compliant ETFs in comparison
The most important factors at a glance
When choosing a Sharia-compliant ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all Sharia-compliant ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.
Compare all Sharia-compliant ETFs in detail
Compare all Sharia-compliant ETFs in a chart
| Provider ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI World Islamic UCITS ETFIE00B27YCN58 | 572 | 0,30% p.a. | Distribueren | Ierland | Volledige replicatie | |
| iShares MSCI Emerging Markets Islamic UCITS ETFIE00B27YCP72 | 271 | 0,35% p.a. | Distribueren | Ierland | Volledige replicatie | |
| iShares MSCI USA Islamic UCITS ETFIE00B296QM64 | 217 | 0,30% p.a. | Distribueren | Ierland | Geoptimaliseerde sampling | |
| HSBC MSCI World Islamic ESG UCITS ETF USD (Acc)IE000X9FTI22 | 45 | 0,30% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| HSBC MSCI Emerging Markets Islamic ESG UCITS ETF USD (Acc)IE0009BC6K22 | 44 | 0,35% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| HANetf Saturna Al-Kawthar Global Focused Equity UCITS ETF AccIE00BMYMHS24 | 13 | 0,75% p.a. | Accumulerend | Ierland | Sampling | |
| HSBC MSCI Europe Islamic ESG UCITS ETF EUR (Acc)IE000AGFZM58 | 12 | 0,30% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| HSBC MSCI USA Islamic ESG UCITS ETFIE000I5NV504 | 11 | 0,30% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| HSBC MSCI Japan Islamic ESG UCITS ETF USD (Acc)IE0001XCFC82 | 10 | 0,30% p.a. | Accumulerend | Ierland | Volledige replicatie |
Source: justETF.com; As of 15-07-2024
Return comparison of all Sharia-compliant ETFs
The table shows the returns of all Sharia-compliant ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.
| ETF | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| HANetf Saturna Al-Kawthar Global Focused Equity UCITS ETF Acc | 5,45% | 4,16% | 15,78% | 20,88% | 12,57% | |
| iShares MSCI Emerging Markets Islamic UCITS ETF | 6,90% | 6,98% | 15,44% | 20,46% | 6,53% | |
| HSBC MSCI Emerging Markets Islamic ESG UCITS ETF USD (Acc) | 7,59% | 6,39% | 14,47% | 17,28% | - | |
| HSBC MSCI Europe Islamic ESG UCITS ETF EUR (Acc) | -0,70% | 2,83% | 8,30% | 15,69% | - | |
| HSBC MSCI World Islamic ESG UCITS ETF USD (Acc) | 3,58% | 0,79% | 8,76% | 14,94% | - | |
| HSBC MSCI USA Islamic ESG UCITS ETF | 5,74% | 0,46% | 8,55% | 14,87% | - | |
| iShares MSCI USA Islamic UCITS ETF | 5,11% | 0,88% | 9,47% | 14,08% | 44,88% | |
| iShares MSCI World Islamic UCITS ETF | 3,05% | 2,33% | 8,60% | 13,69% | 36,73% | |
| HSBC MSCI Japan Islamic ESG UCITS ETF USD (Acc) | -0,23% | -3,15% | 6,10% | - | - |
| ETF | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| HANetf Saturna Al-Kawthar Global Focused Equity UCITS ETF Acc | 15,78% | 18,55% | -17,11% | 8,09% | - | |
| iShares MSCI Emerging Markets Islamic UCITS ETF | 15,44% | 9,77% | -17,91% | 12,08% | 11,03% | |
| HSBC MSCI Emerging Markets Islamic ESG UCITS ETF USD (Acc) | 14,74% | - | - | - | - | |
| iShares MSCI USA Islamic UCITS ETF | 9,26% | 20,58% | -6,18% | 39,61% | -1,92% | |
| HSBC MSCI USA Islamic ESG UCITS ETF | 8,29% | 24,90% | - | - | - | |
| HSBC MSCI World Islamic ESG UCITS ETF USD (Acc) | 8,29% | 21,59% | - | - | - | |
| iShares MSCI World Islamic UCITS ETF | 8,24% | 18,66% | -6,32% | 31,66% | -1,09% | |
| HSBC MSCI Europe Islamic ESG UCITS ETF EUR (Acc) | 7,75% | 19,24% | - | - | - | |
| HSBC MSCI Japan Islamic ESG UCITS ETF USD (Acc) | 6,10% | - | - | - | - |
Source: justETF.com; As of 30-06-2024; Calculations in EUR including dividends