Before 2025, I saw investing as a bit of a gray area.
I was investing, but cautiously — mostly in individual companies I personally felt comfortable with. ETFs felt unfamiliar, and I didn’t fully understand how they worked or how they fit into halal investing. Because of that uncertainty, I stayed away from them.
In 2025, that changed.
This post is for anyone trying to understand halal ETFs and how they can fit into a long-term, Shariah-compliant investing approach. It explains how my thinking evolved, the halal ETFs I chose, and how I now think about building a halal ETF portfolio in a way that feels clear, intentional, and sustainable.
How My Approach to Halal ETF Investing Changed in 2025
The biggest shift for me in 2025 was moving from hesitation to structure.
I realized that avoiding ETFs wasn’t necessarily making my portfolio safer — it was simply limiting my understanding. Once I took the time to learn how ETFs work, they became less intimidating and more practical as long-term investing tools.
At the same time, I became more intentional about what not to do. I wanted to avoid holding too many ETFs, constantly switching investments, or building a portfolio I couldn’t clearly explain or stick with over time.
The goal became clarity, not complexity.
1. Wealthsimple Shariah World Equity ETF (WSHR) — Building a Long-Term Foundation
WSHR played an important role in my portfolio because it provided broad global exposure in a simple structure.
Being Canadian-listed made it accessible and easy to hold long-term, but more importantly, it helped create a stable foundation. Global diversification matters when the goal is to stay invested through different market conditions rather than reacting to short-term noise.
For me, WSHR represents the anchor of a halal ETF portfolio — something steady that doesn’t require constant attention.
2. SP Funds S&P 500 Shariah Industry Exclusions ETF (SPUS) — Growth Through Large U.S. Companies
SPUS added growth-oriented exposure to my portfolio through large U.S. companies that meet Shariah-compliant criteria.
While it is based on the S&P 500 universe, SPUS does not track the conventional S&P 500. Instead, it follows a Shariah-screened version, which excludes non-compliant sectors and applies financial ratio filters. As a result, the portfolio tends to have a noticeable tilt toward sectors such as technology and healthcare, where companies often have lower leverage and stronger balance sheets.
For me, SPUS was a way to gain halal exposure to established U.S. companies and long-term economic growth, without relying on the full conventional index. It fits naturally into a long-term portfolio focused on staying invested rather than reacting to short-term market movements.
Wahed FTSE USA Shariah ETF (HLAL) — Balancing U.S. Market Exposure
HLAL helped balance my U.S. exposure alongside SPUS.
While SPUS is more concentrated and tech-focused, HLAL provides broader exposure across the U.S. market. Holding both allowed me to stay invested in U.S. equities without relying too heavily on a single sector.
In simple terms, HLAL added balance, while SPUS provided growth focus.
A Lesson I Learned Along the Way
One assumption I had to unlearn was this: more ETFs do not automatically mean more safety.
At one point, I thought holding many ETFs would reduce risk. In reality, it often just leads to overlap and confusion. A smaller number of well-understood ETFs made it easier to stay disciplined and confident in my decisions.
For Beginners and Those Feeling Unsure
If you’re new to halal investing, or already investing but feeling unsure, this is worth remembering:
You are not behind.
You don’t need every halal ETF available.
What matters more is having a clear approach that you understand and can stick with over time.
Final Thoughts
The halal ETFs I chose in 2025 — WSHR, SPUS, and HLAL — reflect how I now think about investing: simple, long-term, and intentional.
The goal isn’t to build the perfect halal portfolio.
It’s to build one you trust enough to stay invested in.
If you’re starting out, this is one way to think about it.
