All investment options that are compliant (or potentially compliant) with Shariah law, organized by type. One table to see everything at a glance, and a recommended strategy at the end.
| Investment | Halal status | Returns | Difficulty |
|---|---|---|---|
| Individual halal stocks | Halal (with screening) | 7-13% /yr | Medium |
| Halal ETFs (SPUS, HLAL, ISDU, ISDW) | Halal | ~10% /yr | Easy |
| Physical gold / Gold ETFs | Halal | ~7% /yr | Easy |
| Real estate (cash / Murabaha) | Halal | 5-8% gross | Hard |
| Sukuk (Islamic bonds) | Halal | 3-6% /yr | Medium |
| Shariah robo-advisors (Wahed, Amana) | Halal | ~6-8% /yr | Easy |
| Real estate crowdfunding | Verify | 6-12% /yr | Easy |
| Private business investment | Halal (if lawful activity) | Variable | Very hard |
| Conventional savings / bonds | Not compliant (riba) | 2-5% /yr | Easy |
Recommended strategy
Here's the allocation we recommend for most people, in order of priority:
- Emergency fund (3-6 months of expenses) — in a checking account, accessible immediately. This is the foundation — never touch this money to invest
- Halal ETF or index replication via DCA (~50-70%) — this is the growth engine of your portfolio. SPUS, HLAL, ISDU, or ISDW depending on your location, or replicate the index with our tools NASDAQ 100 Halal and S&P 500 Halal
- Gold (~10-20%) — diversification and protection. Inverse behavior to stocks, safe haven during crises
- Real estate when capital allows — when you have enough for a cash purchase or Murabaha. Consider affordable housing opportunities first
What matters is not the amount but the consistency. Even $50/month invested consistently for 20 years generates significant capital. Start now.