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Best Halal ETFs for UK Investors in 2025
Ruby Layram
14th May 2025
If you’re a UK investor seeking to align your portfolio with Islamic principles, there are a range of Shariah-compliant ETFs that combine ethical investing with easy diversification. These ETFs exclude industries and financial practices prohibited under Islamic law, such as interest-based finance, alcohol, and gambling, while focusing on sectors like technology, healthcare, and consumer goods.
In this guide, we will share the best Halal for UK investors to considering 2025 and explain how to get started with investing.
Top Halal ETFs for UK Investors in 2025
Let’s take a look at the best Halal ETFs to consider for UK investors in 2025.
Also see: The best global ETFs for UK investors
1. iShares MSCI World Islamic UCITS ETF (ISWD)
This is one of the most popular Halal ETFs around. It invests in Shariah-compliant companies from 23 developed countries. You’ll be buying into big tech and healthcare firms (think Microsoft, Johnson & Johnson) without the worry of forbidden sectors. It’s globally diversified and has a low fee (0.30%).
2. HSBC MSCI World Islamic ESG UCITS ETF (HIWS)
Similar to ISWD, but with an extra focus on environmental, social, and governance (ESG) factors. If you’re someone who wants to make an impact with your money, this is a great option. Again, globally diversified and affordable.
3. iShares MSCI USA Islamic UCITS ETF (ISUS)
Want to invest specifically in the US? This ETF gives you Shariah-compliant exposure to some of the biggest names in American business—minus the usual suspects like banks and alcohol producers.
4. HSBC MSCI USA Islamic ESG UCITS ETF (HIUS)
Like ISUS, but adds ESG filtering on top of Shariah compliance. Think of it as ethical investing with a double layer of integrity.
5. iShares MSCI Emerging Markets Islamic UCITS ETF (ISDE)
If you’re feeling adventurous, this one’s for you. It gives you exposure to fast-growing countries like China, India, and Brazil—all while keeping things Halal. It’s a bit more volatile but offers exciting growth potential.
6. HSBC MSCI Emerging Markets Islamic ESG UCITS ETF (HIEM)
Similar to ISDE, but again with the added ESG screen. This is a good pick if you’re after long-term ethical growth in up-and-coming economies.
7. Invesco Dow Jones Islamic Global Developed Markets UCITS ETF (IGDA)
This one tracks the Dow Jones Islamic Index and focuses on developed markets. It includes big-name companies that meet strict Islamic finance rules. A little more expensive (0.40% fee) but still a solid pick.
8. Wahed FTSE USA Shariah ETP (HLAL)
From the team at Wahed, this ETF tracks the FTSE Shariah USA Index. It’s available in GBP and other currencies, so you don’t have to worry about conversion fees. Great if you want to support Muslim-owned platforms.
9. HANetf Saturna Al-Kawthar Global Focused Equity UCITS ETF (AMAP)
A more actively managed option. It’s a bit pricier (0.75% fee), but you get a curated, focused portfolio of global Shariah-compliant companies.
Ideal if you prefer a human touch over automated investing.
How to Invest in Halal ETFs (Step-by-Step Guide)
If you fancy adding a Halal ETF to your portfolio, here’s an overview of how to do it!
Step 1: Choose a Platform
Pick a UK investment platform that offers access to international ETFs. Some popular choices include:
- Invest Engine
- Interactive Investor
- Hargreaves Lansdown
- AJ Bell
- Etoro (for fractional shares)
- Wahed (Shariah-compliant robo-adviser)
Make sure they offer the ETF(s) you’re interested in. You can usually search by ticker symbol (like ISWD or HLAL).
Step 2: Open an Account
You’ll need to open a Stocks & Shares ISA or general investment account. Most platforms walk you through the process in 10–15 minutes. You’ll need ID, address details, and a UK bank account.
Step 3: Deposit Funds
Transfer money from your bank account into your investment account. Some platforms offer instant bank transfer or debit card payments.
Step 4: Choose Your Halal ETF(s)
Search for your chosen ETF using the ticker symbol, then click to view its details. Make sure it matches your values and investment goals.
Step 5: Buy Your ETF
Enter the amount you want to invest and place your order. You can either invest a lump sum or set up monthly contributions.
Final Thoughts
Halal investing doesn’t have to be complicated. With ETFs, you can access a wide range of Shariah-compliant companies from around the world- all in just a few clicks. Whether you’re focused on global growth, ethical investing, or supporting Muslim-led platforms, there’s something here for you.
Remember: always do your own research, and if in doubt, speak to a financial adviser who understands Islamic finance.
But rest assured, with the ETFs listed above, you’re off to a strong and ethical start.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies, are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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