Islamic ETFs find favour among investors, though growth challenges persist
Exchange-traded funds (ETFs) have become a cornerstone of the global investing landscape, offering investors a flexible, cost-effective way to diversify their portfolios.
These instruments often track major indices like the S&P 500 or the MSCI Index, offering liquidity and exposure to various asset classes. For Sharia-compliant investors, Islamic ETFs combine portfolio diversity with the ethical principles of Islamic finance.
An exchange-traded fund is a basket of securities, such as stocks, commodities or bonds, that is listed and traded on an exchange. Sharia-compliant ETFs are screened to ensure compliance with Islamic law, excluding companies involved in prohibited activities.
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Hassan Jivraj