--- title: "Is Wealthsimple Shariah World Equity Index ETF (WSHR) Halal?" canonical: https://www.halalwallet.ca/is-it-halal/wshr-etf publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: fintech_product ticker: WSHR exchange: Cboe Canada last_reviewed: 2026-07-29 --- # Is Wealthsimple Shariah World Equity Index ETF (WSHR) Halal? **Verdict: Halal** (Generally permissible) WSHR is Shariah-compliant by design and is the only halal ETF listed on a Canadian exchange. Managed by Mackenzie Investments for Wealthsimple, it tracks the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index — a screened basket of roughly 160 developed-market stocks selected for quality and low volatility, weighted by risk rather than market cap. The fund and index are certified by Ratings Intelligence Partners, an annual Shariah audit is published, and quarterly dividend purification ratios are disclosed. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence 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 Result: Pass 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' and screeners' positions - **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](https://www.cdn.wealthsimple.com/en-ca/pdfs/Audit_Fatwa_Wealthsimple_31122025.pdf)) - **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](https://www.spglobal.com/spdji/en/indices/dividends-factors/dow-jones-islamic-market-developed-markets-quality-low-volatility-index-usd/)) ## 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. ## Sources - Wealthsimple — WSHR fund page (screens, certification, quarterly purification table) (https://www.wealthsimple.com/en-ca/quote/neo/wshr) - Ratings Intelligence Partners — WSHR Shariah audit fatwa (Dec 31, 2025, PDF) (https://www.cdn.wealthsimple.com/en-ca/pdfs/Audit_Fatwa_Wealthsimple_31122025.pdf) - Mackenzie Investments — Wealthsimple ETFs prospectus (management fee, index mandate, PDF) (https://www.mackenzieinvestments.com/content/dam/mackenzie/en/mutual-funds/prospectus-ws-2024-april-en.pdf) - S&P Dow Jones Indices — DJIM Developed Markets Quality and Low Volatility Index (https://www.spglobal.com/spdji/en/indices/dividends-factors/dow-jones-islamic-market-developed-markets-quality-low-volatility-index-usd/) - Mackenzie/Wealthsimple launch release — Canada's first Shariah-compliant ETF (May 12, 2021) (https://www.newswire.ca/news-releases/mackenzie-investments-partners-with-wealthsimple-to-launch-canada-s-first-shariah-compliant-etf-869244800.html) - HalalWallet Methodology (/methodology) - HalalWallet Editorial Policy (/editorial-policy) - Purification (income cleansing) — glossary (/glossary/purification) ## Frequently asked questions ### Is WSHR halal? Yes. WSHR (Wealthsimple Shariah World Equity Index ETF) tracks the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index, which screens out impermissible sectors and over-leveraged companies. The fund and index are certified by Ratings Intelligence Partners, an annual Shariah audit is published, and quarterly purification ratios are disclosed. Apply the published impure ratio to your distributions. ### Is WSHR the only halal ETF listed in Canada? Yes — WSHR, listed on Cboe Canada (formerly NEO Exchange) since May 2021, is the only halal ETF trading on a Canadian exchange. The other halal ETFs available to Canadians (HLAL, SPUS, UMMA, MNZL, and the SP Funds lineup) are U.S.-listed, which means USD trading and different withholding-tax treatment depending on the account you hold them in. ### How is WSHR different from HLAL or SPUS? All three are genuinely Shariah-compliant; the differences are listing, universe, and weighting. WSHR trades in CAD on Cboe Canada and holds ~160 developed-market stocks worldwide, weighted by risk with a quality/low-volatility screen — so it behaves more defensively and is far less tech-concentrated. HLAL and SPUS are U.S.-listed, market-cap-weighted U.S. equity funds with heavy technology exposure. Many Canadian investors treat WSHR as a global core and add a U.S.-listed halal ETF for growth. ### Do I need to purify WSHR dividends? Yes, a small amount. Wealthsimple publishes an impure ratio with each quarterly distribution — historically about 0.4% to 1.7% of the dividend. Donate that share of your distributions to charity. Our purification calculator does the math from your holding and the published figure. ## Related verdicts - [Is Manzil Russell Halal USA Broad Market ETF (MNZL) Halal?](https://www.halalwallet.ca/is-it-halal/mnzl-etf.md) — Halal - [Is SP Funds Dow Jones Global Sukuk ETF (SPSK) Halal?](https://www.halalwallet.ca/is-it-halal/spsk-etf.md) — Halal - [Is SP Funds S&P 500 Sharia ETF (SPUS) Halal?](https://www.halalwallet.ca/is-it-halal/spus-etf.md) — Halal - [Is SP Funds S&P Global REIT Sharia ETF (SPRE) Halal?](https://www.halalwallet.ca/is-it-halal/spre-etf.md) — Halal - [Is SP Funds S&P Global Technology ETF (SPTE) Halal?](https://www.halalwallet.ca/is-it-halal/spte-etf.md) — Halal - [Is SP Funds S&P World ETF (SPWO) Halal?](https://www.halalwallet.ca/is-it-halal/spwo-etf.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md