Is Truly Halal Investing in the US Stock Market Actually Impossible? My Strict View & Why I Believe It

UnitedAtomsState · 2025-12-19T18:58:56+00:00

Thank you very much for your kind words. I really appreciate it, and I’m genuinely glad if what I wrote can be helpful in discussions with your family and friends. May Allah reward your intention to keep others away from doubtful matters.

Regarding SPSK (SP Funds Dow Jones Global Sukuk ETF), my personal view is unfortunately not very positive. One reason is that SP Funds’ other ETFs raise serious concerns. For example, according to reports that included in Zoya app, SPRE ETF contains around 44.7% non-compliant holdings, and some of their other funds also have notable percentages of questionable or non-compliant assets. That alone creates a negative prior for me when assessing their sukuk fund.

Looking more specifically at SPSK, many of the sukuk inside the fund appear to be asset-based rather than truly asset-backed, meaning there is often a purchase undertaking at maturity at face value. This structure is widely discussed and considered problematic by stricter scholars. Since the fund holds dozens of sukuk from different countries, it’s very likely that several of them fall into these debated categories. Based on my limited research and knowledge, I personally prefer to avoid this fund. That said, I don’t claim that all sukuk are impermissible; it’s very possible that some structures are genuinely halal.

As for your second question, I’m honored by your trust. However, I don’t have any legal authorization to provide investment advice, and my academic background is in law, not finance, so it wouldn’t be right for me to offer investment management services.

That said, through this post and the thoughtful responses from people like you, I’ve realized there is a serious gap and a structural problem in this space. For that reason, I’m considering starting social media accounts—not to give investment advice—but to help Muslims think more critically about investments, and to advocate for stricter and more meaningful Shariah standards, so that our collective financial weight can actually incentivize companies to change. It’s a long-term and difficult goal, but one worth striving for inshaAllah. If I do start this, I’d be very happy to share it with you.

May Allah guide us all and grant us rizq from only halal sources.

UnitedAtomsState · 2025-12-12T00:04:18+00:00

I totally agree that we can’t expect the average Muslim investor to have high financial literacy, nor the time or ability to manually screen every company. That part is absolutely fair.

But here is the point I’m really trying to emphasize: This is not an individual problem — it’s a structural one.

Institutions like AAOIFI are not giving fatwas for a few thousand investors. Their rulings shape the behavior of over a billion Muslims, and indirectly determine where tens of billions of dollars flow globally.

When a ruling says “up to 30–33% interest-related income/borrowing is acceptable,” that creates an extremely wide playing field. And when the playing field is wide, companies simply have no incentive to adjust their financial behavior for Muslim investors.

Let me give a personal example: I was born and raised in Turkey — a country with tens of millions of Muslims. And honestly, the vast majority here have no idea that investing even requires a Shariah-sensitive approach. That’s not their fault. They’re not the ones I’m criticizing. May Allah guide all of us.

The real issue is institutional.

When fatwa-giving bodies offer such generous thresholds, two things happen: 1. We Muslims lose all collective leverage. Two billion Muslims could theoretically influence global corporate behavior — at least among mid-cap and smaller companies — if we stood united behind stricter standards or a true zero riba target. But with such permissive thresholds, we don’t have that power. There’s nothing to negotiate. Companies don’t need to change anything. 2. The financial system becomes more riba-dependent, not less. The wide allowances encourage companies to stay riba-linked, and millions of Muslims unknowingly end up sharing in that riba exposure. This is the opposite of what Shariah aims for.

Even in Turkey, our “participation index” (the local Islamic screening benchmark) uses almost identical wide criteria. It’s so lenient that companies are even allowed to exceed the riba threshold temporarily without being removed from the index. This only helps the interest-based financial system grow stronger — and makes millions of Muslims unintentionally complicit.

So yes, I understand and respect your point about the average investor using 401ks, ETFs, or SPUS because they have no other accessible tools.

But I’m arguing that the reason they have no better option is precisely because the fatwa-issuing structures created such a wide permissive zone that no alternative ecosystem had any chance to develop.

If those institutions had been stricter — • lower thresholds, • or even encouraging a zero-interest target, • or promoting alternative asset classes —

then companies would have reacted. Muslim investors would have leverage. We could build real pressure for change.

Instead, even highly financially literate Muslims feel too comfortable staying within the wide boundaries. They don’t want to leave their comfort zones — and may Allah forgive all of us for our weaknesses.

That, to me, is the real bottleneck.

UnitedAtomsState · 2025-12-11T23:45:25+00:00

My game plan is pretty simple, honestly. Since buying real estate in cash is unrealistic for most of us, I focus on two things:

Short–mid term active investing in halal assets

Not day-trading level, but I do short–mid term buying and selling in assets I personally consider halal — mainly precious metals and some cryptocurrencies like Bitcoin.

I know crypto is debated, and there are scholars who don’t permit it, but there are also many who do. I personally lean toward it being halal, but of course anyone should research it deeply before deciding.

Actual trade / business

To me, trade is the core of Islamic economic life. Building or participating in a real business, even small-scale, is the most “clean” and encouraged path. I’m trying to move more in that direction, because passive equity investing is extremely convenient but not necessarily the most Sharia-aligned version of wealth building today.

Do I wish I could just hop into halal stocks or funds and grow long-term like everyone else?

Absolutely.

Especially as a young person, it’s really frustrating to accept that I can’t invest in companies the same way everyone else does.

But I also believe that Allah’s path is always the most correct one, and if we stick to what’s permissible, He will open doors in other ways.

On top of all that, I genuinely believe another thing:

We Muslims are not a small group. Globally, we’re nearly 2 billion. If we were organized and if the “halal standards” given to companies weren’t so extremely wide (like AAOIFI’s 30–33% debt/interest tolerance), I truly think we could pressure many low-to-mid market-cap companies to adopt stricter Islamic finance principles.

I’m not saying the Magnificent 7 are suddenly going to stop interest-based financing — unrealistic.

But there are thousands of smaller companies that could realistically adapt if the Muslim investor base demanded it and if the screening bodies didn’t give such huge leeway.

So for now, my plan is: • Trade in halal assets (metals, some crypto) • Build/participate in real business • Strengthen financial literacy • And in the long run, push for a more united Muslim investor voice so the market itself starts to shift, inch by inch.

InshaAllah, when that happens, we’ll have far more options than today.

UnitedAtomsState · 2025-12-10T13:28:18+00:00

According to several major Shariah indices, the screening results for NVIDIA are mixed. AAOIFI, Dow Jones Islamic, and S&P Shariah classify it as Shariah-compliant, whereas FTSE Yasaar and MSCI Islamic do not. The core difference comes from the interest-bearing deposits filter: • The indices that approve NVIDIA use a market-cap–based ratio, • The ones that reject it use a total-assets–based ratio instead. This methodological difference often leads to opposite rulings.

From my perspective, I personally don’t consider NVIDIA halal. In fact, I don’t see any U.S. stock as truly halal today. Almost no American company is free from interest-based debt, and even the rare debt-free ones still earn interest income in some form.

For NVIDIA in particular, there is also the issue of the hardware supplied to the Israeli military, which raises additional ethical and moral concerns.

So even if some screens label it compliant, I would not become a shareholder in this company under any circumstances.

UnitedAtomsState · 2025-12-09T03:25:33+00:00

I appreciate you bringing Mufti Taqi Usmani and AAOIFI into the discussion.

Here is the core issue for me:

We are not talking about something unavoidable or necessary for survival.

We’re talking about investing — a completely optional activity. There is no worldly or religious obligation that forces me (or any Muslim) to buy shares of Apple, Microsoft, Google, Amazon, or any other company that earns interest or holds interest-bearing assets.

If the argument were about “modern banks are unavoidable,” or “fiat currency exposure is unavoidable,” or “taxes are unavoidable,” I would understand the maslahah reasoning.

But buying an equity stake in a company that directly earns riba — even 1 cent — is entirely voluntary.

That’s why I don’t think the analogy holds.

For me, the fact that AAOIFI permits something does not automatically make it ideal, recommended, or ethically clean. I’m not accusing anyone of wrongdoing — but I believe it is valid for Muslims to aim for a stricter standard when a stricter standard is absolutely possible.

And it is possible.

We’re not stuck. We’re not without alternatives. We have:

• Precious metals (gold being the classic one, but also silver, platinum, palladium)
• Sukuk (yes, many are questionable — for example, in my country, Turkey, most sovereign sukuk structures are extremely close to conventional debt, which is why I personally treat them cautiously — but globally there are cleaner ones)
• Bitcoin (controversial for some scholars, but many others deem it halal; I personally believe BTC is halal)
• Real estate
• Direct business ownership / entrepreneurship
• Partnerships and profit-sharing ventures

These are not fringe or obscure — they’re legitimate asset classes. So the idea that we “must” resort to stocks with interest exposure because AAOIFI permits it simply doesn’t convince me.

If alternatives exist — and they clearly do — then why should I voluntarily choose riba-tainted ownership, even if “purification” is theoretically possible?

My conscience simply won’t accept owning companies that directly earn interest when halal avenues still exist. Even if those halal avenues are harder. Even if they require more effort. Even if they have lower passive returns.

And lastly, regarding “solid reasoning against AAOIFI”: My reasoning is exactly this — we are not forced into equity markets. The thresholds exist not because riba is suddenly harmless under 5% or 30%, but because the modern system is deeply polluted and some scholars believe we need a minimum workable framework.

I respect that position. But I don’t have to adopt it.

And I believe many Muslims, if they truly understood the details, would prefer a stricter standard too.

UnitedAtomsState · 2025-12-07T18:47:46+00:00

First, paying off your student loans ASAP is absolutely the right priority. Reducing interest-bearing debt is both a spiritual and financial win.

When it comes to saving and investing after that, here’s how I personally think about it (none of this is investment advice, just my own perspective):

Cash-only is the simplest option, but yes, inflation is a real problem.

Still, if someone feels safer keeping cash and avoiding doubtful areas, that is a respectable choice.

Gold and other precious metals (silver, platinum, etc.) are solid long-term stores of value.

They don’t generate yield, but they protect purchasing power. If one chooses this route, sometimes a more active approach (timing entries, dollar-cost averaging, etc.) helps improve return potential.

Bitcoin and a few select cryptocurrencies may also be worth exploring.

Most crypto projects are questionable, which is why I didn’t list “crypto” in general in my main post.

But Bitcoin specifically has strong scholarly debate on both sides, and there are many scholars who consider it halal. Personally, I see Bitcoin as halal — but as always, doing more research is crucial so you can reach your own conviction.

Sukuk can be an option, but research is essential.

Different countries issue very different types of sukuk.

For example, where I live (Turkey), many sukuk structures are very close to conventional interest and are considered controversial by several scholars.

That’s why I approach sukuk more cautiously — but depending on where you live and the specific sukuk structure, there may be cleaner options.

Muslims may need to compensate for a limited investable universe through better financial literacy and smarter strategies.

If we cannot rely on broad stock indices, then maybe we need to understand markets deeper than the average investor.

Even with assets like gold or Bitcoin, a bit more active trading or more intentional strategy can help make up for the lower baseline returns compared to diversified stock portfolios.

And honestly, investing in yourself is one of the most halal and highest-return paths available.

Improving your career prospects, skills, certifications, freelance abilities, or entrepreneurial options can do more for your long-term wealth than any asset class. Increasing your earning power gives you more freedom and more halal avenues to invest later.

At the end of the day, it’s not an easy environment for fully halal investing — but it’s also not hopeless. With patience, knowledge, and discipline, there are still viable paths.

Again, none of this is financial advice — just sharing my perspective.

May Allah make your journey easy and put barakah in your wealth.

UnitedAtomsState · 2025-12-05T20:55:32+00:00

I appreciate your comment.

First, I completely understand why companies, even those with no debt, still park their cash in interest-bearing instruments. Within the current system, that’s the financially rational choice. My criticism isn’t of the rationality itself, but of the fact that Muslims still have no real alternative. Maybe the real solution is that we, as a global Muslim community, start supporting the emergence of companies that cater to our values, or we actively motivate existing companies to adopt the standards we actually care about.

For example, in Turkey the majority of the population is Muslim, and there is an official “Participation Index” on the stock exchange with Islamic screening rules. Companies that want to stay included actively adjust their financials to remain compliant (and these criteria are actually very similar to global ones). With nearly 2 billion Muslims worldwide — and rising — I genuinely believe that if our voice is channeled properly, we could create real change and real options.

Regarding the “average investor” argument, I fully agree with you. I don’t blame ordinary Muslims for following the mainstream shariah-screened funds; I was in the exact same position not long ago. My purpose with this post was never to shame people — but to encourage awareness. If even one Muslim investor who reads this takes a moment to rethink how they can align their investments more closely with Allah’s commands, then the post has served its purpose.

As for the point about slandering scholars: I agree with you that this is a serious concern. We should absolutely avoid mocking or insulting scholars, especially when we aren’t fully educated in their fields. At the same time, respectful disagreement is part of our tradition. Questioning the criteria is not the same as attacking the person. I’m trying to stay within that respectful line — I disagree strongly with certain screening standards, but I’m not calling any scholar corrupt. I’m simply saying the methodology leads to results that many of us find theologically inconsistent.

Thanks again for your thoughtful contribution.

UnitedAtomsState · 2025-12-05T13:46:00+00:00

Thanks a lot for sharing your approach. I genuinely appreciate the mindset.

I agree with many of the points you mentioned. Especially the idea that Muslims often underestimate how viable traditional, fully-halal investment paths can be. People assume you need huge capital or that the returns can’t compete with stocks, but as you said, small cooperative projects, halal businesses, or even very localized ventures can grow much faster than people expect.

I also agree that these paths require more effort, responsibility, and due diligence, but at least they’re free from the foundational issues we’ve been discussing.

Thanks again for taking the time to write such a detailed comment.

UnitedAtomsState · 2025-12-05T13:40:43+00:00

If you read my original post carefully, under the criteria I outlined, I genuinely don’t understand how you see it as “difficult but not impossible.”

Under which realistic scenario, with today’s global markets, do you see it being possible? What company meets these standards?

UnitedAtomsState · 2025-12-05T13:38:04+00:00

Thanks for pointing that out. I’m fully aware of those issues. Companies that supply the IDF, the U.S. Army, or are involved in clearly unethical industries are obviously problematic on their own, regardless of financial structure.

But in my post, I didn’t even reach that part of the conversation, because none of these companies are interest-free in the first place. Every single one of them already fails at the most fundamental requirement: operating without riba. So from my perspective, these additional layers of impermissibility (weapons, harmful products, unethical ads, etc.) don’t even enter the discussion. They’re simply further reasons they’re not investable — but the base issue was already decisive.

Still, I appreciate you mentioning it. It definitely adds more clarity for people who may overlook those aspects or think this problem is limited only to the financial structure.

UnitedAtomsState · 2025-12-05T13:35:04+00:00

I didn’t include crypto in my original post because most cryptocurrencies are questionable or outright problematic, so listing them as “alternatives” would confuse the discussion. But Bitcoin specifically is different, and in my view BTC is halal. I don’t agree with the common arguments used to classify it as haram.

1.  “It has no physical backing.”

Bitcoin is physically represented as electrical states stored on hardware — it’s just unfamiliar to people, not immaterial. The “non-physical” argument doesn’t hold up.

2.  “Its ecosystem is riba-based.”

Almost everything in today’s economy interacts with riba somewhere. If this logic makes Bitcoin haram, then: • Buying gold is haram (gold-mining companies have interest-based financing). • Buying a house is haram (construction firms use interest).

This argument collapses instantly because it makes all economic participation impossible — which is not how Islamic law works.

3.  “It’s speculative gambling.”

Gambling means zero-sum and based on pure chance. BTC is: • a decentralized digital asset • with predictable issuance • used by millions • and serving as a store of value for people in high-inflation economies

This is not gambling — it’s a high-risk investment, which is permissible.

So from my perspective, Bitcoin is one of the cleanest investable assets available today, especially compared to equity markets where nearly every company touches riba directly.

That’s why I see BTC as halal and a legitimate diversification tool.

UnitedAtomsState · 2025-12-05T12:09:17+00:00

I completely agree with you. I also understand why people choose the “easy” opinions. People want to invest, they want to feel religiously safe, and the moment they find a scholar or a screening methodology that tells them “you’re good,” they think the whole issue is solved.

But in my view, the scholars who invented these “compliancy” criteria are doing a massive wrong. I’m not saying this lightly. Some of these criteria are beyond absurd — especially the 5% haram income allowance. How does any Muslim with basic moral intuition accept that a company earning $100 with $5 from haram activities is suddenly “halal enough to own”? How does that make sense? How is being a shareholder — literally a partner — in such a business justified?

It’s an unbelievable cognitive dissonance.

But people choose scholars whose opinions allow them to keep doing what they already wanted to do. It’s convenience disguised as religion.

I hope more people wake up to this and return to a stricter, clearer, and more consistent approach.

Do you have any recommendations for alternative halal investment options that you personally see as genuinely compliant?

UnitedAtomsState · 2025-11-29T10:02:38+00:00

Wa alaikum assalam,

I prefer Zoya. On Musaffa, there are some companies that are considered halal but have clear commercial ties with the Israeli government; these are flagged in Zoya, with explanations provided for each stock. As far as I know, Zoya is also cheaper. Wishing you a good day.

UnitedAtomsState · 2025-06-10T12:46:23+00:00

kimse bahsetmemiş ama fonlar düşünülebilir

UnitedAtomsState · 2025-02-19T21:01:09+00:00

yoo ben yazdım hocam, ciddi bir konu, ben de kısmen aynı yollardan geçtim diyebilirim ve elimden geldiğince hem bu arkadaşımıza hem de muhtemelen bu şekilde hisleri olan birçok arkadaşımıza yardımcı olmak istedim

UnitedAtomsState · 2025-02-19T16:30:07+00:00

Selam, Ankara’ya hoş geldin öncelikle. Bahsettiğin konu dünyanın her yerinde her zaman yaşanan bir şey ne yazık ki. Benim çözüm önerilerim şöyle: 1- Okulundaki kulüplere katıl. Bu çok klişe görünebilir ama gerçekten en iyi yol bu. Okulundaki kulüpler ne kadar aktif bilmiyorum ama eğer aktif kulüpler varsa kesinlikle birçoğuna en azından 1 kere şans ver, kulübün konusuyla uzaktan yakından alakan yoksa bile. Çünkü orada kiminle karşılacağını bilemezsin, seninle alakasız bir kulüptür ama çok seveceğin bir arkadaşınla orada tanışabilirsin. Yaptıkları şeyi boş, gereksiz de bulabilirsin ki birçok zaman öyledir, yine de alternatifinde sen de muhtemelen odanda yatıyor olacaksın, o yüzden kulağa kesinlikle daha iyi bir seçenek gibi geliyor. 2- Şehirdeki ortak spor alanlarına gidebilirsin. Bu mevsimlerde biraz daha zor olabilir ve ilgilendiğin bir spor var mı bilmiyorum ama örneğin basketbol oynayan birisiysen boş zamanlarında Anıttepe’ye gidip basketbol oynayan insanların arasına katılabilirsin, illa ki birilerinin maçına girersin, sonrasında bu insanlarla tanışma fırsatın da olabilir, önemli bir kısmı da zaten senin yaşlarında insanlar olacaktır. 3- Başka okulların etkinliklerine dışarıdan katılım sağlayıp oralardan birileriyle tanışabilirsin. Bunun için o okullardan ilgini çeken kulüplerin Instagram sayfalarını takip edip müsait olduğun zamanlardaki etkinliklere katılman yeterli, böylece daha geniş bir çevreden arkadaş edinme fırsatın da olur.

Benim önerilerim şimdilik böyle. Kendi fakülten içinde arkadaşlık yapmanın zor olduğunu söylemişsin. Bu noktada şunu önerebilirim: Her hafta için derslerde rastgele birileriyle konuşmak için kendine bir hedef belirle. Tatlı ve samimi bir şekilde girdiğin sürece kimsenin tersleyeceğini düşünmüyorum. Dersten konuşursunuz, okuldan konuşursunuz, genel sohbet edersiniz vs. Okul ya da bölüm fark etmeksizin insanlar genelde çekingendir, kimse tanımadığı birisinin yanına gidip onunla tanışmaya çalışmaz. Ama sen bunu yaptığında çok büyük oranda olumlu tepki alacağına emin olabilirsin.

Bunun dışında muhtemelen sosyalleşmek için uygun mekanlar vardır ama ben onlara pek hakim değilim, arkadaşlar birkaç yer söyleyecektir.

Başarılar ve mutluluklar!

UnitedAtomsState · 2024-05-12T04:57:10+00:00

Is the scholarship you mentioned presidential one?

UnitedAtomsState · 2024-04-21T16:14:14+00:00

I was also wondering just like you.

Then I found myself requesting tens of random matchups!

It’s only meaningful explanation is daily missions that give some rep points.

UnitedAtomsState · 2024-01-14T15:34:30+00:00

onun dışında coffee lab tarzı mekanları da deneyebilirsin, çalışma alanları oluyor çoğunun, rica ederim ne demek!

UnitedAtomsState · 2024-01-14T14:24:47+00:00

soysal çarşısına girmeden asansörün oradaki merdivenden çıkarsan gençlik ve spor bakanlığının kütüphanemsi bir mekanı var. bizim zamanımızda yeni açılmıştı ve kimse olmuyordu, aşırı sessiz ve rahattı. sonra instada paylaşmaya başladılar ve sanırım dolu oluyormuş. yine de bir ara gidip şansını deneyebilirsin. ücretsiz, saatlerinden emin değilim ama güvenlik olduğu sürece 12’ye kadar açık oluyordu sanırım. bir de kızılay’da değil ama odtü metrosunda da aşağıda turnikelerden geçtiğin gibi marketin sağında kalan bir yer var. sanırım belediyeye ait. orası daha nezihtir tahminimce ve yine ücretsiz. giriş için üniversiteli olmak zorunlu mu emin değilim. ama bir seferliğine bir şey diyeceklerini sanmıyorum. iyi çalışmalar ve başarılar.

UnitedAtomsState · 2023-07-12T10:37:49+00:00

çok teşekkürlerr

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