Why *don't* you buy Halal ETFs?

[michael_natale]

The general investing advice boils down to buying up halal ETFs, and forgetting about them.

Many folks *don't* do this.

If that's you, I'm curious: why?

 

[resjudicata]

@michael_natale Generally speaking halal etfs are way more expensive than traditional etfs. They management fees will be a major drag on ur portfolio

 

[mikalmo]

@resjudicata This

 

[michaelleemason]

@michael_natale I don't think that the stocks classified as 'halal' are actually halal.

I simply do not think that the defence provided by the aaoifi is sufficient for the allowance of the debt.

If i agreed with their standards, I would purchase halal ETF's without a second thought

 

[michael_natale]

@michaelleemason That's understandable. What do you invest in instead?

 

[michaelleemason]

@michael_natale I dont

 

[nivel]

@michael_natale Cherry pick stocks that do look and smell halal (and ensure they're halal if you can) and manage your own wealth.

Or assign a trusted family member

 

[trevjelinek]

@michael_natale Not comfortable with many of their holdings.

 

[michael_natale]

@trevjelinek Why? Is it debt too, or something else?

 

[trevjelinek]

@michael_natale Honestly, mostly business activity, as in the way the company makes money. P&G for example makes hygiene products. That's fine imo. Others not very much. Obviously debt & interest levels matter to me as well but I'm fine if they're under the set guidelines (eg 30% or 33%). But even then I noticed some companies are leveraged to their eye balls and are still held by said ETFs. Maybe it takes a while to adjust holdings and such but if that's the case then what's the point of a halal ETF then?

I agree with others that their fees are high but frankly that wouldn't be a concern to me if I was comfortable with buying them from a sharia perspective

 

[everythingpink]

@michael_natale Lending is goods and currency or money. The market concentrate index funds are filled with them. In fact, I cannot even enter business with currency capital stock. r/usdc is fiat reserve, not the Native American treasury deed revenuedata.doi.gov.