Is Wealthsimple Shariah World Equity Index ETF (WSHR) Halal?

Do the halal screening authorities agree?

How we read the evidence

HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.

WSHR occupies a unique position in the halal ETF landscape: it is the only Shariah-compliant ETF listed on a Canadian exchange. Launched on May 12, 2021 on the NEO Exchange (now Cboe Canada) as a partnership between Wealthsimple and Mackenzie Investments — with Mackenzie as trustee, manager, and portfolio manager — it gives Canadian Muslims a CAD-denominated, domestically listed core holding that doesn't require converting currency or trading on a U.S. exchange.

The fund fully replicates the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index. The construction is genuinely different from the U.S.-listed halal ETFs: after S&P Dow Jones applies the DJIM Shariah screens (removing companies with more than 5% impermissible revenue and those breaching the 33% debt, cash, and receivables ratio limits), the surviving developed-market companies are scored on an equal-weighted mix of quality and low-volatility factors, the top-ranked names in each sector are selected, and the roughly 160 holdings are weighted by risk rather than market capitalization. The result looks nothing like a screened S&P 500: consumer staples, health care, and industrials lead the sector mix, the United States is about half the portfolio (with meaningful Japan, Switzerland, U.K., and Canada weights), and no single holding exceeds about 1%. That makes WSHR the defensive, diversified option among halal ETFs — typically steadier in drawdowns, and unlikely to keep pace when U.S. mega-cap technology rallies.

Governance is the other pillar. Ratings Intelligence Partners — the same screening firm behind major global Islamic indices — certifies the fund and index, a Shariah audit is published (most recently dated December 31, 2025), and Wealthsimple discloses an impure ratio with every quarterly distribution, historically between roughly 0.4% and 1.7%. That published, dated purification trail is exactly what a properly governed Shariah fund should provide.

The practical considerations are cost and fit. The 0.50% management fee (roughly 0.64% MER all-in) is higher than U.S.-listed halal ETFs like SPUS or HLAL, though far below the 2%+ fees of legacy Canadian Shariah mutual funds. Account placement also matters: WSHR trades in CAD and fits naturally in a TFSA, RRSP, FHSA, or RESP without currency conversion, while U.S.-listed alternatives carry different withholding-tax treatment depending on the account. For a Canadian Muslim wanting one diversified, domestically listed halal equity core, WSHR is the default choice; pair it with a U.S.-listed halal ETF if you want more growth exposure.

Business Activity Screen

A passive, CAD-traded ETF listed on Cboe Canada (formerly NEO Exchange) since May 12, 2021, managed by Mackenzie Investments. It fully replicates the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index: Shariah-screened developed-market companies are scored on quality and low-volatility factors, the top-ranked companies per sector are selected (~160 holdings), and positions are risk-weighted. Geographic mix is roughly half U.S. with significant Japan, Switzerland, U.K., and Canada exposure; sector mix leads with consumer staples, health care, and industrials.

The Dow Jones Islamic Market methodology excludes companies deriving more than 5% of revenue from alcohol, tobacco, pork products, weapons, conventional financial services, and adult entertainment, and removes companies breaching its debt, cash/interest-bearing-securities, and receivables ratio limits (each under 33% of trailing average market capitalization). Ratings Intelligence Partners certifies the fund and index, an annual Shariah audit is published, and Wealthsimple discloses quarterly dividend purification ratios.

Scholars' & Screeners' Positions

Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.

• Ratings Intelligence Partners

  Certifies WSHR and its underlying index as Shariah-compliant and conducts the fund's periodic Shariah audit (most recent published audit dated December 31, 2025), with dividend purification information published quarterly.

  Source →

• Mainstream view

  A scholar-certified ETF tracking a Dow Jones Islamic Market index — with published audits and purification ratios — is permissible passive exposure for Muslim investors, subject to performing purification and avoiding leverage and short-selling.

  Source →

Purification

Screened companies still earn small amounts of incidental interest, so Wealthsimple publishes an impure ratio with every quarterly distribution — historically roughly 0.4% to 1.7% of each dividend. Donate that percentage of your distributions to charity to cleanse the residual non-compliant income; our purification calculator automates the math.

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