Halal ETF Explorer
Every Shariah-compliant ETF a Canadian retail investor can realistically buy — filtered by asset class and listing, sorted by fee, with what each fund's MER actually costs on your amount.
MER by fund
Management expense ratio for every fund in your filtered view — lower is better. ~ marks fees not confirmed on the provider's own page.
The funds, cheapest first
| Ticker | Fund | Type | Listing | MER | Est. fee/yr |
|---|
Est. fee/yr = your amount × MER. ~ = approximate fee from fund databases, not confirmed on the provider's page — verify before buying.
Screening & access notes
Who certifies each fund as Shariah-compliant, and how a Canadian actually buys it.
How Canadians buy these funds
CAD-listed (WSHR)
One order at any Canadian broker, settled in Canadian dollars, eligible for TFSA, RRSP, FHSA and RESP accounts. No currency conversion — the trade-off is a higher MER than the cheapest US and UCITS options and one fund choice.
US-listed (SPUS, HLAL, MNZL, SPSK, SPRE, SPWO, SPTE, UMMA)
You need US dollars first. Retail brokers typically charge around 1.5% on the conversion each way — often more than a year of MER on the same money. Run your conversion through the currency exchange calculator to see the real cost, and look up Norbert's gambit at your broker to shrink it.
The RRSP vs TFSA withholding nuance
US-listed fund distributions face US withholding tax: the Canada–US treaty cuts it from 30% to 15%, and in an RRSP or RRIF it is waived entirely (Article XXI treats them as pension accounts). A TFSA, FHSA or RESP gets no treaty relief — 15% comes off every distribution and cannot be recovered. In a non-registered account the 15% is generally recoverable through the foreign tax credit. The exemption only applies to holding the US-listed fund directly; a Canadian fund wrapping US stocks pays the withholding inside the fund regardless of account. UCITS funds on the LSE lose 15% inside the Irish fund in every account type, but avoid US estate-tax exposure for large holdings.
Non-registered extras
Sukuk and REIT distributions are foreign income (fully taxable) in taxable accounts, and foreign holdings with over $100,000 CAD in cost trigger T1135 reporting.
Not ETFs, but part of the picture
How this works
What makes an ETF halal
Each fund tracks an index built with Shariah screens certified by a scholar board. Two layers: business-activity screens remove companies earning material revenue from alcohol, gambling, tobacco, conventional banking and insurance, pork, adult entertainment and weapons; financial-ratio screens then remove companies too dependent on interest — under AAOIFI-style rules, debt, interest-bearing securities and receivables must each stay below roughly 30–33% of market capitalization (MSCI's Islamic series uses total assets as the denominator, which is why its lists differ). Residual impure income is purified — estimated and donated to charity.
The fee math
Est. fee/yr = amount × MER. A $10,000 position at a 0.57% MER costs about $57 a year; at 0.30% it costs $30. The MER is deducted inside the fund daily — you never see a bill, which is exactly why it is worth comparing.
MER is not the only cost
US-listed and LSE-listed funds add currency-conversion costs (roughly 1.5% each way at retail rates), bid-ask spreads (wider on small funds), and withholding-tax drag that depends on your account type — see the buying guide above. A slightly higher MER on a CAD-listed fund can be cheaper overall for small amounts traded often.
Data vintage
Fund facts are as of . Fees marked ~ came from fund databases rather than the provider's own page. Providers change fees — verify the MER, ISIN and screening on the provider's page before you buy.
What this doesn't model
Returns, yields and distributions; bid-ask spreads; FX conversion costs in the fee column (the fee math assumes the money is already invested); taxes you may owe on distributions or gains; zakat; broker commissions or account minimums. Sorting by MER is not a recommendation — mandate, screening standard and account fit matter as much as fee.
Halal ETF FAQ
What makes an ETF halal (Shariah-compliant)?
It tracks an index that screens out prohibited business activities (alcohol, gambling, tobacco, conventional banking and insurance, pork, adult entertainment, weapons) and applies financial-ratio screens — debt, interest-bearing securities and receivables each kept under roughly 30–33% of market cap or assets under AAOIFI-style rules. A Shariah board certifies the index, and incidental impure income is purified through charity.
Can I hold halal ETFs in a TFSA or RRSP?
Yes — the exchange-listed funds here are eligible for TFSA, RRSP, FHSA and RESP accounts at Canadian brokers (LSE-listed UCITS funds need a broker with international access, such as IBKR Canada). The account changes the tax drag: US-listed distributions lose 15% withholding in a TFSA but are exempt in an RRSP.
Why does US-listed vs CAD-listed matter?
US-listed funds trade in USD — you pay an FX conversion (about 1.5% retail spread) each way, and the 15% US dividend withholding applies in a TFSA but not in an RRSP (treaty Article XXI). WSHR is the only CAD-listed halal equity ETF: no FX, though it carries its own fund-level foreign withholding in any account.
What is purification (dividend cleansing)?
Even screened companies can earn small impure income, such as interest on corporate cash. Index providers estimate that fraction, and fund managers or investors donate it to charity so returns stay compliant. Several providers publish per-share purification amounts yearly.
What's the lowest-cost way to start in Canada?
Simplest: WSHR at any Canadian broker — CAD-listed, one trade, no FX, 0.57% MER. Lower MERs exist US-listed (MNZL 0.40%, SPUS 0.45%) and on the LSE (ISDU/ISWD 0.30%), but they add FX costs and account-tax nuance. In an RRSP, US-listed funds also skip the withholding tax.