The acquisition will help more Muslim Canadians access wills that are compliant with Islamic principles without having to compromise on their religious.
Toronto-based Wealthsimple has launched its previously-announced Shariah-compliant exchange-traded fund (ETF) on the NEO Exchange.
This represents the first NEO-listed ETF by Wealthsimple. The NEO Exchange was founded in 2015 and claims to be the third most active marketplace in Canada, representing approximately 13 percent of all volume traded in Canadian-listed securities and almost 100 public listings. The Wealthsimple Shariah World Equity Index ETF marks NEO’s 100th fund listing.
“We applaud Wealthsimple for providing an investment product that addresses the under-serviced but important Islamic community.”
– Jos Schmitt, NEO
Wealthsimple’s new ETF was created to offer investors access to a diversified index of Shariah-compliant stocks. Wealthsimple first announced plans to launch this ETF in the fall as part of its latest push to offer more Halal financial products.
Najar says the main driver for his investment decisions is religious. I cannot do the other way, it s just impossible. Even if there is money to be made I cannot make it that way, he said from Vancouver.
The money he invests must do no harm and be beneficial for society. Usaries are forbidden because the Qur an says Muslims aren t allowed to profit from lending money, so earning interest from an individual or bank is prohibited.
Socially responsible investing, including those based on religious beliefs, is a growing trend in Canada with assets under management surging to $3.2 trillion last year, up from $2.1 trillion in 2017, according to the Canadian Responsible Investment Trends Report.
Ross MarowitsCanadian PressIE Staff
Ahmed Najar only started investing two years ago after discovering a way to do so that aligns with his Muslim values.
The 36-year-old lab researcher turned to Halal investing that screens out forbidden investments such as pork, alcohol, tobacco, weapons, adult entertainment and the biggest no-no of all: debt, bonds or interest.
Najar says the main driver for his investment decisions is religious.
“I cannot do the other way, it’s just impossible. Even if there is money to be made I cannot make it that way,” he said from Vancouver.
The money he invests must do no harm and be beneficial for society. Usaries are forbidden because the Qur’an says Muslims aren’t allowed to profit from lending money, so earning interest from an individual or bank is prohibited.