The halal ETF space in North America has been growing steadily, giving Muslim investors more ways to build Shariah-compliant portfolios without picking individual stocks.
One of the newest entries is MNZL, a U.S. equity ETF launched by Manzil in late 2025.
So how does it compare to existing options — and is it actually worth adding to your portfolio?
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What is MNZL?
MNZL is a passively managed ETF that tracks a Shariah-compliant index of U.S. equities.
The fund gives exposure to large and mid-cap companies that meet Islamic screening criteria, while also applying an additional ethical filter.
If you’re new to halal ETFs, start here:
What Makes MNZL Different?
1. Broader Diversification
Most halal ETFs focus heavily on large-cap stocks. MNZL starts with a broader universe that includes both large and mid-sized companies.
This results in a significantly higher number of holdings, which can reduce reliance on a small group of dominant companies.
For investors concerned about concentration risk — especially in tech-heavy halal portfolios — this is a meaningful difference.
2. Additional Ethical Screening
Like other halal ETFs, MNZL applies Shariah screening to exclude impermissible industries and companies with excessive debt or interest income.
On top of that, it introduces an additional layer of screening focused on broader ethical considerations such as human rights.
This goes beyond standard halal screening and may appeal to investors who want their portfolio to reflect both financial compliance and broader ethical values.
3. Lower Fees
MNZL is positioned as one of the lower-cost halal ETFs currently available.
While small differences in fees may not seem significant in the short term, they can have a noticeable impact over longer investment horizons.
How MNZL Compares to Other Halal ETFs
If you’re comparing MNZL to other popular halal ETFs, the main differences come down to diversification, screening approach, and cost.
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For example:
These funds tend to be more concentrated and follow slightly different index methodologies.
What’s Inside MNZL?
Like most market-cap weighted ETFs, MNZL is heavily influenced by the largest Shariah-compliant companies in the U.S.
This typically results in significant exposure to sectors like technology and healthcare, which dominate halal investment portfolios due to screening constraints.
Even with broader diversification, investors should still be aware of sector concentration when building their overall portfolio.
Where MNZL Fits in a Halal Portfolio
MNZL is designed to act as a core U.S. equity holding.
For many investors, it can serve as a simple way to gain diversified exposure to the U.S. stock market while remaining within Shariah guidelines.
If you're building a long-term strategy, start here:
How to build a halal ETF portfolio
Pros and Cons
Pros:
- Broader diversification than many halal ETFs
- Additional ethical screening layer
- Competitive expense ratio
- Simple passive investment approach
Cons:
- Still relatively new with limited track record
- Sector concentration remains a factor
- Less established than older halal ETFs
The Bottom Line
MNZL adds a new dimension to the halal ETF space with broader diversification, an additional ethical screen, and competitive pricing.
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See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Whether it’s the right choice depends on your priorities — particularly how much you value diversification and extended screening criteria.
For most investors, it’s best viewed as one option among several when building a halal portfolio, rather than a one-size-fits-all solution.
