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💰 Money & work

Are Index Funds Halal?

Quick answer It depends

Standard index funds such as an S&P 500 tracker include banks, alcohol, gambling and highly indebted companies, so most scholars do not consider them halal. Islamic index funds and ETFs that screen out these companies are halal for most scholars.

Also asked as: “Is the S&P 500 halal?” · “Are ETFs halal?”

Screening

Sharia screening removes companies whose main business is haram and those with high debt or interest income. Small remaining impure income is usually given to charity ("purification").

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Written by the Halal Check Online editorial team. Last reviewed 2026-10-06. How we write these answers · Suggest a correction