Diversified Long-Term Growth
Build a diversified portfolio of Shariah-compliant ETFs for steady, long-term wealth building. The most popular approach for Muslim investors in Australia
How It Works
Choose a brokerage or platform
Open an account with any ASX brokerage, or use a dedicated halal investing app. Islamic ETFs listed on the ASX can be bought like any other share.
Select halal ETFs
Pick from Shariah-compliant ETFs listed on the ASX, such as Islamic equities, sukuk, and property funds. Each fund holds dozens of pre-screened assets in one product.
Set your allocation
Decide how much to put in equities, sukuk or income funds, and property or gold. Your allocation depends on your risk tolerance and time horizon.
Invest regularly and rebalance annually
Set up automatic contributions and rebalance once or twice a year. The key is consistency: time in the market beats timing the market.
Why Choose This Strategy?
Things to consider ▾
• Market downturns will affect your portfolio in the short term
• Halal ETFs exclude financials and some sectors, creating natural tilts
Diversified halal ETF investing is the most straightforward way for Muslim investors to grow wealth in the stock market. Instead of picking individual stocks, you buy a single fund that holds a portfolio of Shariah-compliant assets.
In Australia, Islamic ETFs listed on the ASX apply Shariah screening aligned with AAOIFI standards. Companies are screened for both business activity (no alcohol, gambling, conventional finance, etc.) and financial ratios (debt levels, interest income percentages) to ensure compliance.
The biggest advantage of this approach is simplicity. One trade gives you broad diversification automatically, reducing the risk that any single stock hurts your portfolio. Note that Australia's Islamic ETFs are actively managed, so their fees are higher than mainstream index ETFs; always read the PDS.
The main trade-off is that halal ETFs exclude financial sector stocks and other non-compliant industries, creating natural sector tilts. This means your performance will differ from the overall market, sometimes better, sometimes worse.
Example Portfolio Allocation
Example Halal Portfolio
Balanced Long-Term
This is an illustrative example only and does not constitute financial or investment advice. Actual allocations should be determined with a qualified financial advisor based on your individual circumstances. Past performance does not guarantee future results.
Frequently Asked Questions
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Reviewed quarterly and updated for major content changes.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-09