What are the best Wahed ETFs?
4 min read
By Beqa Bumbeishvili, ETF Insider

What are the best Wahed ETFs?

In this article, we will explore the top-performing Wahed ETFs available in the market. Wahed Invest is a renowned provider of Sharia-compliant investment solutions, and we will delve into their ETF offerings to identify the ones that have shown consistent growth and strong performance. Whether you are an investor seeking halal investment options or simply looking for promising ETFs, this guide will provide valuable insights into the best Wahed ETFs.

Wahed and its Offerings

Wahed is an investment management firm that specializes in providing Halal investment solutions. With a focus on ethical investing, Wahed offers a range of exchange-traded funds (ETFs) that align with Islamic principles. One of their notable ETFs is the Wahed FTSE USA Shariah ETF (HLAL).

HLAL vs. Similar ETFs

The Wahed FTSE USA Shariah ETF (HLAL) aims to provide investors exposure to U.S. equities while adhering to Islamic principles. It tracks the performance of the FTSE USA Shariah Index, which includes companies that meet specific ethical criteria.

When comparing HLAL to other similar ETFs in the market, one notable option is the SPDR S&P 500 ETF Trust (SPY). While SPY provides broad exposure to the U.S. stock market, HLAL focuses on companies that comply with Shariah principles. This distinction makes HLAL an attractive choice for investors seeking socially responsible investments.

HLAL overlap What are the best Wahed ETFs?HLAL overlap What are the best Wahed ETFs?

The Advantages of Investing in Wahed ETFs

Investing in Wahed ETFs, such as HLAL, offers several advantages. First and foremost, Wahed's ETFs provide a way for investors to align their investments with their ethical values. This is particularly appealing for those seeking socially responsible investment options.

Additionally, Wahed ETFs offer diversification benefits by providing exposure to a basket of securities. By investing in an ETF, investors gain access to a diversified portfolio of assets, which helps to spread risk across different companies and sectors.

Another advantage of Wahed ETFs is their transparency. ETFs typically disclose their holdings regularly, allowing investors to see the underlying assets and make informed investment decisions.

Are Wahed ETFs Right for You?

Determining whether Wahed ETFs are the right choice for you depends on your investment objectives and personal values. If you prioritize ethical investing and want exposure to the U.S. stock market, Wahed ETFs like HLAL can be a suitable option.

However, it's essential to consider your risk tolerance, investment timeframe, and overall investment strategy before making any investment decisions. Conducting thorough research and consulting with a financial advisor can help you evaluate whether Wahed ETFs align with your financial goals.

Conclusion

Wahed ETFs, such as the Wahed FTSE USA Shariah ETF (HLAL), provide an opportunity for investors to invest in a socially responsible manner while gaining exposure to the U.S. stock market. By adhering to Islamic principles, Wahed ETFs offer a unique investment option for individuals seeking ethical investment solutions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. It is not providing any investment advisory services. Please conduct thorough research or consult with a financial advisor before making any investment decisions.

Sources:

https://www.marketwatch.com/ HLAL ETF issuer
https://www.marketwatch.com/investing/fund/hlal HLAL ETF official page

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FAQ

  • What is the Wahed ETF?

    Wahed ETFs are exchange-traded funds offered by Wahed Invest, a fintech company specializing in providing halal investment solutions. These ETFs are designed to comply with Islamic principles and offer investors exposure to various asset classes.

  • How many ETFs does Wahed offer?

    As of my knowledge cutoff in September 2021, Wahed offers a range of ETFs, including the Wahed FTSE USA Shariah ETF, Wahed FTSE Canada Shariah ETF, and Wahed FTSE Japan Shariah ETF. Please note that the available options may have changed since then, so it's advisable to check the latest offerings from Wahed.

  • What criteria does Wahed use to select securities for its ETFs?

    Wahed applies Islamic investment principles when selecting securities for its ETFs. These principles typically exclude investments in companies involved in activities prohibited by Islamic law, such as alcohol, gambling, tobacco, and interest-based financial services.

  • What are the performance objectives of Wahed ETFs?

    The performance objectives of Wahed ETFs are aligned with the underlying indexes they aim to track. The ETFs seek to provide investment results that correspond to the performance of the specific indexes while adhering to the Islamic investment principles.

  • What are the advantages of investing in Wahed ETFs?

    Investing in Wahed ETFs may appeal to individuals seeking halal investment options. Wahed ETFs provide a diversified investment approach, transparency, liquidity, and ease of access through the stock market. They offer an opportunity for investors to align their investment choices with their ethical and religious beliefs.