{"id":241655,"date":"2025-12-16T08:28:12","date_gmt":"2025-12-16T08:28:12","guid":{"rendered":"https:\/\/adamfayed.com\/?p=241655"},"modified":"2025-12-16T08:28:13","modified_gmt":"2025-12-16T08:28:13","slug":"shariah-compliant-etfs-in-singapore","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/it\/investment-options\/shariah-compliant-etfs-in-singapore\/","title":{"rendered":"How to Invest in Shariah-Compliant ETFs While Living in Singapore"},"content":{"rendered":"<p>You can invest in Shariah-compliant ETFs in Singapore by opening a brokerage account, selecting halal ETFs listed locally or globally, and placing buy orders.<\/p>\n\n\n\n<p>These ETFs avoid non-halal sectors such as alcohol, gambling, and conventional banking, providing an ethical way to grow your wealth.<\/p>\n\n\n\n<p><strong>Questo articolo tratta di:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What makes an ETF Shariah compliant?<\/li>\n\n\n\n<li>How to invest in halal ETF Singapore?<\/li>\n\n\n\n<li>What are the best halal ETFs in Singapore?<\/li>\n\n\n\n<li>Do we have to pay tax on ETFs in Singapore?<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Punti di forza:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Always verify Shariah compliance before investing.<\/li>\n\n\n\n<li>Most halal ETFs for Singapore investors are global; SGX-listed options are limited.<\/li>\n\n\n\n<li>ETFs are generally tax-efficient and suitable for long-term investing.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>I miei recapiti sono hello@adamfayed.com e WhatsApp +44-7393-450-837 se avete domande.<\/p>\n\n\n\n<p>Le informazioni contenute in questo articolo hanno un valore puramente indicativo. Non costituiscono consulenza finanziaria, legale o fiscale e non rappresentano una raccomandazione o una sollecitazione a investire. Alcuni fatti potrebbero essere cambiati dal momento della stesura.<\/p>\n\n\n\n<img decoding=\"async\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/CTA_5_final_-512x288.jpg\" usemap=\"#image-map\" alt=\"Discover How We Can Address Your Financial Pain Points\">\n\n<map name=\"image-map\">\n    <area href=\"https:\/\/adamfayed.com\/subscribe\/\" target=\"_blank\" alt=\"Subscribe Free\" title=\"Abbonati gratuitamente\" coords=\"72,217,198,252\" shape=\"rect\">\n    <area href=\"https:\/\/adamfayed.com\/contact\/\" target=\"_blank\" alt=\"Discover Now\" title=\"Scopri ora\" coords=\"303,217,429,252\" shape=\"rect\">\n<\/map>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are there any halal ETFs in Singapore?<\/strong><\/h2>\n\n\n\n<p>Yes, there are halal ETFs available in <a href=\"https:\/\/www.instagram.com\/reel\/DPV9Fdskewg\/\" target=\"_blank\" rel=\"noopener\">Singapore<\/a>.<\/p>\n\n\n\n<p>Shariah-compliant ETFs are designed to meet <a href=\"https:\/\/adamfayed.com\/it\/investment-options\/islamic-investments-halal-investing\/\">Islamic investment<\/a> principles, avoiding businesses involved in alcohol, gambling, conventional banking, and other non-compliant sectors.<\/p>\n\n\n\n<p>Several local and global ETFs listed on the Singapore Exchange (SGX) provide exposure to halal equities while maintaining Shariah compliance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Is buying Shariah compliant ETFs a good investment in Singapore?<\/strong><\/h2>\n\n\n\n<p>Buying Shariah\u2011compliant ETFs can indeed be a good investment especially if you value ethical, faith\u2011aligned investing while still seeking long\u2011term growth.<\/p>\n\n\n\n<p>For example, the <a href=\"https:\/\/www.msci.com\/documents\/10199\/336315db-1dbd-4c04-a06b-e2fe4e590604\" target=\"_blank\" rel=\"noopener\">MSCI World Islamic Index<\/a>, a common benchmark for Shariah\u2011compliant global equity ETFs, &nbsp;has delivered:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>~\u202f10% annualized return since inception (May\u202f2002 \u2013 Sep\u202f2025)<\/li>\n\n\n\n<li>~\u202f12% annualized return over the past 5 years<\/li>\n\n\n\n<li>Year\u2011by\u2011year performance that in several recent years matched or even outperformed the conventional global equity benchmark: e.g. +22.78% in 2023 vs +23.79% for the conventional index; \u201311.75% in 2022 vs \u201318.14%.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>These numbers show that, at least over a long enough horizon, a diversified Shariah\u2011compliant equity index can offer growth comparable to conventional global equity indexes.<\/p>\n\n\n\n<p>Because these ETFs avoid non\u2011halal sectors, they provide Muslims in Singapore a way to invest globally without compromising religious principles, while still aiming for competitive returns.<\/p>\n\n\n\n<p>However, as with any equity\u2011based investment, returns fluctuate, and there\u2019s no guarantee of future performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to buy Shariah compliant ETF in Singapore for beginners<\/strong><\/h2>\n\n\n<div id=\"rank-math-howto\" class=\"rank-math-block\" >\n<div class=\"rank-math-howto-description\">\n\n<p>You buy a Shariah-compliant ETF in Singapore by opening a brokerage account, selecting a halal ETF, placing your order, and monitoring your investment.<\/p>\n\n<\/div>\n\n<div class=\"rank-math-steps\">\n<div id=\"howto-step-1765021872644\" class=\"rank-math-step\">\n<div class=\"rank-math-step-content\"><p><strong>1. Open a brokerage account.<\/strong> Choose a licensed Singapore broker (e.g., DBS Vickers, OCBC Securities) or an online platform that offers SGX-listed ETFs.<\/p>\n<\/div>\n<\/div>\n<div id=\"howto-step-1765021881594\" class=\"rank-math-step\">\n<div class=\"rank-math-step-content\"><p><strong>2. Select a Shariah-compliant ETF.<\/strong> Research ETFs to ensure they meet Shariah compliance standards and align with your investment goals.<\/p>\n<\/div>\n<\/div>\n<div id=\"howto-step-1765021897712\" class=\"rank-math-step\">\n<div class=\"rank-math-step-content\"><p><strong>3. Fund your account.<\/strong> Transfer money into your brokerage account in preparation for your first purchase.<\/p>\n<\/div>\n<\/div>\n<div id=\"howto-step-1765021906215\" class=\"rank-math-step\">\n<div class=\"rank-math-step-content\"><p><strong>4. Place your first order.<\/strong> Use the brokerage platform to buy the ETF, specifying the number of units or amount to invest.<\/p>\n<\/div>\n<\/div>\n<div id=\"howto-step-1765021921380\" class=\"rank-math-step\">\n<div class=\"rank-math-step-content\"><p><strong>5. Monitor your investment.<\/strong> Regularly review your ETF holdings to ensure they remain Shariah-compliant and continue to meet your financial objectives.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the best Shariah compliant ETF in Singapore?<\/h3>\n\n\n\n<p>The best Shariah-compliant ETFs accessible to Singapore investors are primarily globally domiciled ETFs that follow strict Islamic screening standards.<\/p>\n\n\n\n<p>Currently, there are very few, if any, SGX-listed ETFs officially certified as Shariah-compliant, so most investors access halal ETFs through global brokers.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>iShares MSCI World Islamic UCITS ETF (ISWD) \u2013 Offers broad global equity exposure with strict Shariah screening; accessible via some Singapore-based brokers supporting international ETFs<\/li>\n\n\n\n<li>iShares MSCI USA Islamic UCITS ETF (ISUS) \u2013 Focused on US equities while maintaining halal compliance; accessible through brokers that allow foreign ETF trading<\/li>\n\n\n\n<li>iShares MSCI Emerging Markets Islamic UCITS ETF (ISDE) \u2013 Provides exposure to emerging markets with Shariah compliance, purchasable via global brokers<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>These ETFs are known for diversification, transparent Shariah oversight, and reliable halal screening, making them suitable for Singapore-based Muslim investors seeking ethical, growth-oriented investments.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">How to check if an ETF is halal<\/h3>\n\n\n\n<p>You check if an ETF is halal by confirming it meets Islamic screening standards and has Shariah oversight.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Review the ETF prospectus for Shariah certification or Islamic screening methodology<\/li>\n\n\n\n<li>Verify compliance standards, such as business activity screens and financial ratio screens<\/li>\n\n\n\n<li>Check for Shariah advisory board approval or endorsements from recognized Islamic finance authorities<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are ETFs taxable in Singapore?<\/strong><\/h2>\n\n\n\n<p>In Singapore, ETFs are generally not subject to capital gains tax, making them an attractive <a href=\"https:\/\/adamfayed.com\/it\/investment-options\/islamic-investments-in-singapore\/\">opzione di investimento<\/a>.<\/p>\n\n\n\n<p>Dividend distributions may be taxed depending on the ETF structure, but local and many regional ETFs offer tax-efficient options.<\/p>\n\n\n\n<p>Always check the ETF prospectus or consult a financial advisor for specific <a href=\"https:\/\/adamfayed.com\/it\/expats\/expat-taxes\/expat-taxes-in-singapore\/\">Singapore tax<\/a> implications.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are ETFs considered high risk investments?<\/strong><\/h2>\n\n\n\n<p>Singapore ETFs are not classified as high-risk by default. However, their risk level can rise based on what the ETF invests in.<\/p>\n\n\n\n<p>Singapore-based investors typically face market risk, since most ETFs track baskets of equities, bonds, or commodities. Equity ETFs carry moderate to higher risk, while bond ETFs are generally lower risk.<\/p>\n\n\n\n<p>Shariah-compliant ETFs may exclude highly volatile sectors such as conventional banking, gambling, or alcohol, which can slightly reduce exposure to certain risky industries, but they still move with overall market conditions.<\/p>\n\n\n\n<p>Overall, ETFs in Singapore offer broad diversification, which lowers single-stock risk, yet they remain subject to price fluctuations, economic cycles, and global market movements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are halal ETFs a good choice for retirement in Singapore?<\/strong><\/h2>\n\n\n\n<p>Yes, halal ETFs can be a good choice for retirement in Singapore, particularly for Muslim investors seeking long-term growth aligned with Shariah principles.<\/p>\n\n\n\n<p>Singapore residents can invest in global Shariah-compliant ETFs through brokers that support international ETF trading, allowing them to build a diversified and ethical retirement portfolio.<\/p>\n\n\n\n<p>These ETFs provide broad market exposure, low fees, and transparent Shariah screening, supporting steady long-term compounding.<\/p>\n\n\n\n<p>However, they cannot be purchased using CPF funds, so retirement investing must be done via cash or SRS accounts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusione<\/strong><\/h2>\n\n\n\n<p>Investing in Shariah-compliant ETFs in Singapore is increasingly accessible, offering Muslim investors a practical way to build long-term wealth while staying aligned with Islamic principles.<\/p>\n\n\n\n<p>With global halal ETF options available through local brokerages and digital platforms, you can diversify across markets without compromising on values.<\/p>\n\n\n\n<p>As always, ensure the ETF remains Shariah-compliant, understand the risks involved, and choose products that fit your broader financial goals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Domande frequenti<\/strong><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list\">\n<div id=\"faq-question-1765021104659\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question\">What is the safest investment with the highest return in Singapore?<\/h3>\n<div class=\"rank-math-answer\">\n\n<p>Low-risk options like Singapore government bonds or fixed deposits offer stability but modest returns, while equities and ETFs can deliver higher long-term gains with market fluctuations.<\/p>\n<p>For investors seeking both growth and Shariah compliance, diversified halal ETFs provide a balanced approach, combining ethical investing with potential long-term returns.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1765021114128\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question\">Is Wahed available in Singapore?<\/h3>\n<div class=\"rank-math-answer\">\n\n<p>No, Wahed is currently not accepting new investors from Singapore.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1765021120960\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question\">What is the 4% rule for ETFs?<\/h3>\n<div class=\"rank-math-answer\">\n\n<p>The 4% rule is a retirement guideline suggesting that retirees can withdraw 4% of their investment portfolio annually without significantly depleting their savings.<\/p>\n<p>Shariah-compliant ETFs can be used to implement this strategy for halal <a href=\"https:\/\/adamfayed.com\/it\/retirement\/retirement-planning-for-2026\/\">pianificazione della pensione<\/a>.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1765021131399\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question\">Is it halal to invest in Shariah-compliant stocks?<\/h3>\n<div class=\"rank-math-answer\">\n\n<p>Yes, investing in Shariah-compliant stocks is halal as long as the company meets <a href=\"https:\/\/adamfayed.com\/it\/financial-planning\/30-rule-in-islamic-finance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Islamic finance principles<\/a>, avoiding prohibited industries and excessive debt.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><strong>Siete afflitti dall'indecisione finanziaria? <\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"512\" height=\"288\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-512x288.jpg\" alt=\"\" class=\"wp-image-117505\" style=\"width:683px;height:auto\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-512x288.jpg 512w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-300x169.jpg 300w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-768x432.jpg 768w, https:\/\/adamfayed.com\/wp-content\/uploads\/2025\/03\/Adam-Fayed-Contact_CTA3-scaled.jpg 825w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/it\/become-adams-client\/\">Diventa mio cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/it\/good-match-quiz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Fare il quiz sull'idoneit\u00e0 del cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/it\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Contatto<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Adam \u00e8 un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>You can invest in Shariah-compliant ETFs in Singapore by opening a brokerage account, selecting halal ETFs listed locally or globally, and placing buy orders. These ETFs avoid non-halal sectors such as alcohol, gambling, and conventional banking, providing an ethical way to grow your wealth. This article covers: Key Takeaways: My contact details are hello@adamfayed.com and [&hellip;]<\/p>","protected":false},"author":60,"featured_media":241658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[11798],"tags":[],"class_list":["post-241655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-options"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/241655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/users\/60"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/comments?post=241655"}],"version-history":[{"count":3,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/241655\/revisions"}],"predecessor-version":[{"id":245248,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/241655\/revisions\/245248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media\/241658"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media?parent=241655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/categories?post=241655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/tags?post=241655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}