Your Essential Insight into Halal ETF Australia

Halal ETFs are gaining popularity in Australia as more investors seek Sharia-compliant ways to grow their wealth. These halal investment options enable Muslims and other investors to align their portfolios with their principles while tapping into global markets. Gaining a clear understanding of halal ETF Australia is essential for making informed and faith-aligned investment decisions.  

What Is an ETF (Exchange-Traded Fund)? 

An ETF is a type of investment fund that tracks a basket of securities, such as stocks, bonds, commodities, or other assets, and is traded on a stock exchange. When purchasing an ETF, you receive shares in the ETF, which gives you access to the underlying assets that the ETF invests in. This means you don't own the underlying shares or assets directly. 

What Makes an ETF Halal?

A halal ETF is an investment fund that adheres to Sharia principles. To be considered halal, the ETF must avoid businesses and practices that are prohibited in Islam, such as tobacco, gambling, and interest-based (riba) finance, and must follow specific financial guidelines. 

Why Invest in Halal ETF Australia?

Simple and Convenient Trading

Traded on major stock exchanges, halal ETFs are easily bought and sold, just like regular stocks. Hejaz’s ETFs are listed on the Australian Securities Exchange (ASX), offering investors convenient access to Sharia-compliant investments through Australia’s trusted stock market. 

Commitment to Transparency

Halal ETF providers, such as Hejaz, offer transparency by regularly publishing holdings and compliance reports, helping you understand where your money is invested. 

Faith-Based Investment Choices

Halal ETFs are structured to comply with Islamic principles, excluding industries deemed impermissible (haram) and aligning investments with Sharia principles. This enables you to grow your wealth responsibly while upholding your values and principles. 

How to Choose the Right Halal ETF? 

Verified Sharia Compliance

Ensure the ETF adheres to recognised Islamic investment standards, including the exclusion of haram industries and interest-based financial institutions. Look for funds backed by qualified Sharia scholars. 

Transparent Holdings

Check that the companies within the ETF align with your values. Reliable providers will clearly list what you’re investing in, giving you greater peace of mind as a values-based investor. 

Global Diversification

A halal ETF should offer a diversified portfolio across various sectors and regions—not limited to a single market. This broad diversification helps reduce risk while maximising growth opportunities in line with Sharia principles. 

Streamlined Trading

An ETF should be easily accessible to ensure that you can quickly and conveniently buy or sell shares whenever needed, without facing complicated processes. 

An Established Provider of Halal ETF Australia 

Choose a fund provider with extensive experience in Australia’s Islamic investment funds—one that puts faith, transparency, and principled growth first. 

Hejaz has been offering halal financial services in Australia since 2014. As an Islamic financial services provider, Hejaz works with independent Shariah supervisory boards to certify and audit its funds in line with Islamic investment standards. These ETFs—including Hejaz Equities Fund Active ETF (ASX: ISLM), Hejaz Property Fund Active ETF (ASX: HJZP), Hejaz Sukuk Active ETF (ASX: SKUK), Hejaz High Income Active ETF (ASX: HJHI), and Hejaz High Innovation Active ETF (ASX: HHIF). —offer options with clear Sharia supervision. 

Disclaimer: 

Hejaz Asset Management Pty Ltd (ABN 69 613 618 821, AFSL 550009) is the Investment Manager for Hejaz investment funds. Information on the Hejaz website, in product documents, or promotional materials is general in nature and does not consider your personal circumstances. You should read the relevant PDS or offer document before making an investment decision. Investments carry risk, and past performance is not an indicator of future results. Sharia compliance is based on the interpretation of our appointed Sharia advisers.