In 30 seconds
- Build a safety net first. Keep 3 to 6 months of costs in an account you can reach fast. Pay off debt that charges interest.
- Pick the account. A TFSA suits most people. Use an FHSA if you save for a first home. An RRSP is the best home for US-listed funds: there, the US takes no tax from their dividends.
- Start simple. One fund, WSHR, holds global stocks that pass Shariah screens. You buy it in Canadian dollars, in any account.
- Add sukuk for smaller drops. A sukuk fund such as SPSK usually moves less than stocks. The two fund example puts 20% in it.
- Once a year, move your funds back to their targets, purify if your scholar asks you to, and check your zakat.
These portfolios are examples to learn from, not personal advice. This guide is not religious advice: confirm with a qualified scholar or your local mosque.
What makes a fund halal
A halal fund checks every company it holds against Shariah rules. A Shariah board approves the rules. There are three parts.
1. Business screen
The company must not make its money from what Islam forbids: alcohol, pork, gambling, tobacco, adult entertainment, weapons, or banking and insurance based on interest.
2. Financial screen
The company must not depend on interest. Its debt, its cash in interest-bearing accounts and the money owed to it must each stay below a limit, roughly 30% to 33% of its market value or total assets. Each standard (AAOIFI, MSCI, FTSE, S&P) sets its own limits, so fund lists differ a little.
3. Purification
A company that passes can still earn a small amount from non-halal sources. Many scholars ask investors to give that part of their dividends to charity.
The Halal ETF Explorer shows the screening standard of each fund that Canadians can buy.
Before you invest
1. Build an emergency fund
Keep 3 to 6 months of essential costs in halal savings that you can reach in a day or two. Many Muslims use an account that pays no interest. Do not invest this money. The Emergency Fund calculator finds your target.
2. Clear riba-based debt
A credit card balance, a car loan or a line of credit charges interest every month. Pay it off before you invest. This also ends the riba sooner. The Debt Payoff Plan puts your debts in order.
3. Pick the account
The account changes the tax on a fund. For a fund listed in the US (SPUS, SPSK), the US keeps 15% of each dividend unless the Canada-US tax treaty stops it.
| Account | Use it for | US-listed funds (SPUS, SPSK) |
|---|
| TFSA | Any goal. Room for 2026: $7,000. Withdrawals are tax-free. | The US keeps 15% of each dividend. You cannot get it back. |
| FHSA | A first home. $8,000 a year, $40,000 in total. | Same as the TFSA: the 15% is lost. |
| RRSP | Retirement. 18% of last year's earned income, up to $33,810 for 2026. | No US tax on dividends (treaty Article XXI). |
| Non-registered | Money left over after the other accounts are full. | The US keeps 15%, but you can usually claim it back as a foreign tax credit. |
WSHR is listed in Canada. It pays foreign tax inside the fund in every account, so the account you pick does not change that tax. Not sure which account to fill first? Read RRSP vs TFSA vs FHSA.
Three example portfolios
Each example uses at most three funds from the Halal ETF Explorer. Fund fees come from its data (as of July 6, 2026). Risk here means only the share in stocks: more stocks, bigger ups and downs. These are examples to learn from, not personal advice.
One fund
One global stock fund that trades in Canadian dollars. No currency exchange and nothing to rebalance.
- Yearly fund fee
- –
- Currency exchange
- Not needed: all in Canadian dollars
- Risk
- High: 100% stocks
- Best account
- Any: TFSA, FHSA or RRSP
Suits: First-time investors who want one simple fund in any account.
Account: WSHR is listed in Canada. It pays foreign tax inside the fund, so your choice of account does not change its cost.
Rebalancing: Nothing to rebalance. Put new money into the same fund.
Two fund balanced
Mostly global stocks, plus a sukuk fund that usually moves less than stocks.
- 80%WSHRGlobal stocks
- 20%SPSKSukuk (Islamic bonds)
- Yearly fund fee
- –
- Currency exchange
- Yes, for 20% of the money (SPSK)
- Risk
- Medium to high: 80% stocks
- Best account
- TFSA or FHSA. An RRSP is better for the SPSK part.
Suits: Investors who will not need the money for at least 5 years and want smaller drops than an all-stock portfolio.
Account: SPSK is listed in the US. In a TFSA or FHSA the US keeps part of each payout as tax. In an RRSP it keeps none.
Rebalancing: Once a year, move back to the target split. Put new money into the part that is below its target first. A 70/30 split also works if you want smaller swings.
RRSP three fund
US stocks held directly, plus global stocks and sukuk. In an RRSP the US takes no tax from the US funds' dividends.
- Yearly fund fee
- –
- Currency exchange
- Yes, for 60% of the money (SPUS and SPSK)
- Risk
- Medium to high: 80% stocks
- Best account
- RRSP
Suits: Investors with an RRSP who can change Canadian dollars to US dollars at a low cost.
Account: SPUS and SPSK are listed in the US. Inside an RRSP the Canada-US tax treaty stops US tax on their dividends. In a TFSA or FHSA the US keeps part of each dividend.
Swap: HLAL can do the same job. It follows a different index (FTSE Shariah USA) and has a different Shariah board.
Rebalancing: Once a year, move back to the target split. Trade inside the RRSP, where selling does not cause tax.
Money you need within 3 to 5 years. Keep it out of stocks. A stock fund can fall a lot in one year and take years to come back. Use halal cash or a halal term deposit instead (see the lower-risk options).
Why not MNZL? A very small fund: about US$36 million in assets on October 28, 2026. Small funds have a higher risk of closing, and their buy and sell prices can be further apart.
What each portfolio costs you
Type an amount and pick an account. The table shows what each example costs every year (fund fees plus US tax withheld), and the one-time cost to change money into US dollars.
| Portfolio | Cost each year | Currency exchange, once |
|---|
| One fund | – | – |
|---|
| Two fund balanced | – | – |
|---|
| RRSP three fund | – | – |
|---|
Yearly cost by portfolio
Fund fees plus the US tax withheld, in the account you picked.
How we count. Fund fees are each fund's MER on its share of your amount. US tax withheld is 15% of the yearly payout of each US-listed fund in a TFSA or FHSA, from the fund's published payout yield, and $0 in an RRSP. Not counted: foreign tax that a fund pays inside itself (WSHR pays it in every account), broker commissions, and the gap between buy and sell prices. The currency exchange changes the US-dollar part into US dollars when you buy and back when you sell, by the cheaper of a broker's own conversion and Norbert's gambit (fees as of July 18, 2026). Compare routes in the Currency & FX Fees calculator.
Hands-off: a managed halal portfolio
A robo-advisor picks the funds, rebalances and reinvests for you. You pay an account fee on top of the fund fees, so it costs more each year than holding the funds yourself. Figures as of November 1, 2026.
Wealthsimple Halal portfolio
0.44% to 1.06% a year in total
- What it holds
- WSHR, cash that earns no interest, and a Shariah-certified physical gold ETF. The mix depends on the risk level you pick. It holds no sukuk and no bonds.
- Fees
- Account fee: 0.5% on Core; 0.4% on Premium (C$100,000 or more); 0.4% falling to 0.2% on Generation (C$500,000 or more; 0.2% from C$10 million). Funds inside: 0.24% to 0.56%. Wealthsimple also receives part of WSHR's fee.
- New
- Since July 10, 2026 you can pick the Halal portfolio when you open an account.
- Not confirmed
- We could not confirm which account types offer the Halal portfolio, its minimum, its gold ETF, or its mix at each risk level. Ask Wealthsimple.
Sources: Wealthsimple Help Centre, understanding halal investing · MER fees for managed portfolios · investing fees · changelog.
Manzil Invest halal portfolio, run by Corex
1.20% to 1.88% a year in total, plus sales tax
- What it holds
- Stocks: MNZL, UMMA and HLAL. Income: the Manzil Mortgage Fund and SPSK. Real estate: SPRE. Metals: a gold ETF (GLDM) and a silver ETF (SIVR). Five risk profiles hold from 15% to 90% in stocks.
- Fees
- Account fee: 0.60% plus provincial sales tax, with custody and trading included. Funds inside: 0.60% to 1.28%, by model.
- Accounts
- TFSA, RRSP, FHSA, Non-registered, LIRA
- Who runs it
- Manzil, with Corex Financial Inc. as portfolio manager; CI Investment Services holds the assets.
- Not confirmed
- We could not confirm the minimum investment in Canada. Ask Manzil.
Sources: Manzil Help Centre, fee schedule · Corex halal portfolio holdings · CI Investment Services charges.
Total cost adds the account fee to the fees of the funds inside: the lowest with the lowest, and the highest with the highest.
Lower-risk options for money you need sooner
No halal money-market fund yet. There is no halal money-market fund or cash ETF for Canadians. We found none listed in Canada or the US, or sold as a UCITS fund that Canadians can buy. (As of November 1, 2026.)
Moya Financial term deposits (mudarabah)
CAD deposit insured
- What it is
- A profit-sharing (mudarabah) term deposit at Moya Financial Credit Union in Ontario. Moya's Islamic Finance Advisory Board endorses it. AYA Financial also offers it.
- How to get it
- You must become a member of Moya. Minimum C$5,000. Terms of 1, 3 or 5 years.
- Protection
- Deposit insurance from FSRA (Ontario), per Moya: no limit in registered accounts; up to C$250,000 per category in other accounts.
- The profit rate is not fixed in advance and not guaranteed. Ask Moya for its current rate.
- Check the rules for taking money out before the term ends.
Sources: Moya Financial, investing · AYA Financial, term deposits.
SPSK, a sukuk ETF
USD price moves
- What it is
- An ETF that holds sukuk (Islamic bonds). It trades on NYSE Arca in US dollars. See SPSK.
- How to get it
- Any Canadian broker with US market access. You need US dollars to buy it.
- Protection
- None. It is an investment, not a deposit, and its price goes up and down.
- Its return at market price was -1.55% for the year to September 30, 2026, and +0.76% a year since it started (sp-funds.com).
- Its value in Canadian dollars also moves with the exchange rate.
- In a TFSA or FHSA the US keeps part of each payout as tax. In an RRSP it keeps none.
Source: SP Funds, SPSK fund page.
Manzil Mortgage Fund
CAD offering memorandum
- What it is
- A fund that earns profit from Manzil's halal home financing. Corex Financial Inc. sells its units. It is also part of the Manzil Invest halal portfolio.
- How to get it
- Sold under an offering memorandum. Securities rules limit who can buy and how much. Ask the seller if you qualify.
- Protection
- None. It is an investment fund, not a deposit, so deposit insurance does not cover it.
- Total yearly fee (MER) 1.49%, from Manzil's help centre, not from the offering memorandum.
- It does not trade on an exchange. Read the offering memorandum for when and how you can sell.
- We could not confirm its current payout target.
Sources: Manzil Help Centre, fee schedule · Manzil, Mortgage Fund.
How to buy, and how to rebalance once a year
To buy
- Open the account (TFSA, FHSA or RRSP) at a bank brokerage or an online broker. Most Canadian brokers sell ETFs.
- Move money into the account.
- For a US-listed fund (SPUS, SPSK), change Canadian dollars into US dollars first. A broker's own conversion is simple but costs about 1.5% each way. Norbert's gambit costs a flat fee plus a small spread, and takes a few business days.
- Buy each fund with a limit order: you set the highest price you will pay.
- Reinvest the payouts, or add them to the fund that is below its target.
Once a year
- Compare the share of each fund with its target.
- Put new money into the fund that is below its target.
- If new money is not enough, sell some of the fund that is above its target and buy the one that is below.
- Then check your zakat with the Zakat Calculator.
Selling inside a TFSA, FHSA or RRSP causes no tax. In a non-registered account it can cause capital gains tax.
Purification, in short
A company that passes the screens can still earn a small amount from non-halal sources, such as interest on its cash. Many scholars ask investors to give that part of their dividends to charity. Some fund providers publish a purification amount per share each year; if yours does not, ask the provider. Rulings differ, so ask your scholar if and how you should purify.
Sources
Fund fees, listings and payout yields come from the Halal ETF Explorer, which lists its own sources. The rest of this page was checked on November 1, 2026 against:
Common questions
What is a simple halal portfolio for a beginner in Canada?
The simplest is one fund: WSHR, a global stock ETF that trades in Canadian dollars on a Canadian exchange. It needs no currency exchange and costs the same in a TFSA, FHSA or RRSP. If you want smaller ups and downs, add a sukuk fund such as SPSK, for example 80% WSHR and 20% SPSK. These are examples to learn from, not personal advice.
Should I hold US-listed halal ETFs in a TFSA or an RRSP?
An RRSP is the better home. Under the Canada-US tax treaty, the US takes no tax from the dividends a US-listed fund pays into an RRSP. In a TFSA or FHSA the US keeps 15% of each dividend, and you cannot get it back. In a non-registered account you can usually claim the 15% back as a foreign tax credit. WSHR is listed in Canada, so it pays foreign tax inside the fund in every account.
Is there a halal money-market fund or halal GIC in Canada?
As of November 1, 2026 there is no halal money-market fund or cash ETF for Canadians. The closest options are profit-sharing (mudarabah) term deposits at Moya Financial Credit Union in Ontario, a sukuk ETF such as SPSK, and the Manzil Mortgage Fund, which is sold under an offering memorandum. Each one has limits: the term deposit rate is not guaranteed, SPSK's price moves, and the mortgage fund is not deposit insured.
How much does a managed halal portfolio cost in Canada?
As of November 1, 2026, the Wealthsimple Halal portfolio costs about 0.44% to 1.06% a year in total: an account fee of 0.2% to 0.5% plus 0.24% to 0.56% for the funds inside. The Manzil Invest halal portfolio, run by Corex, costs about 1.20% to 1.88% a year plus sales tax: a 0.60% account fee plus 0.60% to 1.28% for the funds inside.
Do I need to purify dividends from a halal ETF?
A company that passes the Shariah screens can still earn a small amount from non-halal sources. Many scholars ask investors to give that part of their dividends to charity, which is called purification. Some fund providers publish a purification amount per share each year. This guide is not religious advice: confirm with a qualified scholar or your local mosque.
Examples to learn from, not personal advice. These portfolios show how the pieces fit. They are not a recommendation for you: your goals, time frame and tax situation decide the right mix. This guide is not religious advice: confirm with a qualified scholar or your local mosque. Questions, or a figure that looks out of date? Email
fawad@ahmed.fyi.