Islamic vs. Conventional ETF

Islamic vs. Conventional ETF

An Islamic ETF shares most of the traits of a conventional ETF except in the following features:

Features Islamic ETF Conventional ETF
Index Tracks only shariah compliant index Tracks any desired index
Underlying securities Only holds shariah-compliant securities as approved by the shariah advisor at the company level and regulatory level Holds securities included in the securities/stocks universe of the index and of the manager
Use of synthetic securities Not permissable Yes
Shariah governance Yes No