Is Manzil Russell Halal USA Broad Market ETF (MNZL) Halal?
Manzil Russell Halal USA Broad Market ETF (MNZL) · MNZL
MNZL is Shariah-compliant by design and adds a distinctive second screen. It tracks the Russell IdealRatings Manzil Halal USA Broad Market Index — the Shariah-compliant subset of the Russell 1000 — using Russell's IdealRatings AAOIFI-based screens (prohibited sectors plus debt/liquidity/impermissible-income limits). It then applies a further ethical screen based on American Friends Service Committee (AFSC) human-rights criteria. An independent Shariah Supervisory Board oversees it, with a purification process for residual income.
Screening basis: AAOIFI Shariah standards · Last reviewed
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.
Do the halal screening authorities agree?
- HalalWallet (AAOIFI)· Halal
HalalWallet (AAOIFI) rates Manzil Russell Halal USA Broad Market ETF (MNZL) halal; no other recognized authority has a published position.
Stances are normalized from each authority's own dated public position. Disagreement usually reflects a methodology or standard difference (ratio timing, market-cap vs total-assets denominator), not an error. For the fund screens (Wahed/HLAL, SP Funds/SPUS), only a confirmed holding that passed the fund's screen counts as a pass — a non-holding is left blank because absence can reflect index scope.
Is Manzil Russell Halal USA Broad Market ETF (MNZL) Halal?
MNZL is Shariah-compliant by design and adds a distinctive second screen. It tracks the Russell IdealRatings Manzil Halal USA Broad Market Index — the Shariah-compliant subset of the Russell 1000 — using Russell's IdealRatings AAOIFI-based screens (prohibited sectors plus debt/liquidity/impermissible-income limits). It then applies a further ethical screen based on American Friends Service Committee (AFSC) human-rights criteria. An independent Shariah Supervisory Board oversees it, with a purification process for residual income.
How we read the evidence
HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.
MNZL, the Manzil Russell Halal USA Broad Market ETF, is the newest entrant in the U.S. halal ETF space (launched November 2025) and it arrives with a genuinely differentiated approach. Its base is broader than the popular screened S&P 500 funds: it starts from the Russell 1000 — roughly the thousand largest U.S. companies, large- and mid-cap — and keeps the Shariah-compliant subset, leaving a diversified book of more than 450 holdings. That broader universe means more mid-cap exposure than SPUS.
The Shariah screening is rigorous and clearly documented. The index uses Russell's IdealRatings system, whose ratings are built on AAOIFI standards: it excludes companies involved in prohibited activities — alcohol, gambling, conventional financial services and insurance, tobacco, pork, adult entertainment, defense, and interest income — beyond a 5% tolerance, then applies financial-ratio screens on debt and interest-bearing securities. An independent Shariah Supervisory Board oversees the fund, and there is a defined purification process for the small residual income.
What sets MNZL apart is a second screen that has nothing to do with Shariah: an ethical overlay based on the American Friends Service Committee's human-rights methodology, which excludes companies linked to grave human-rights violations such as apartheid or genocide. No other U.S. halal ETF currently layers that on. For an investor who wants their halal screen paired with an explicit human-rights ethical filter, MNZL is unique. The honest caveats are its short track record and smaller asset base as a 2025 launch, and the fact that the extra screen can cause it to diverge from other halal funds. Apply the purification, hold for the long term, and size it as you would any newer fund.
Business Activity Screen
A passively managed ETF (launched Nov 2025) tracking the Russell IdealRatings Manzil Halal USA Broad Market Custom Index — the Shariah-compliant subset of the Russell 1000 (large- and mid-cap U.S. companies), resulting in a broad book of 450+ holdings after screening.
Two-tier screening. First, Russell's IdealRatings system applies AAOIFI-based Shariah screens: it excludes prohibited activities (alcohol, gambling, conventional financial services, conventional insurance, tobacco, pork, adult entertainment, defense, and interest income) beyond a 5% tolerance, then applies financial-ratio limits on debt and interest-bearing securities. Second — uniquely among U.S. halal ETFs — it applies an ethical overlay using American Friends Service Committee (AFSC) human-rights criteria, excluding companies linked to grave human-rights violations. An independent Shariah Supervisory Board oversees the fund (sub-adviser: Manzil Investment Advisors), with a purification process for incidental non-compliant income.
Conditions
Apply the fund's purification process to residual incidental income. Note MNZL is a recent launch (Nov 2025) with a shorter track record than SPUS/HLAL; hold long term and avoid margin.
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.
MNZL independent Shariah Supervisory Board
The index applies AAOIFI-based Shariah screens via Russell's IdealRatings system, and an independent Shariah Supervisory Board oversees the fund with a purification process for residual income.
Source →Ethical (AFSC) overlay
Beyond Shariah screening, MNZL uniquely excludes companies linked to grave human-rights violations using the American Friends Service Committee (AFSC) methodology — an additional ethical layer not found in other U.S. halal ETFs.
Source →
Purification
MNZL's methodology includes a purification process for the small amount of incidental non-compliant income that screened companies earn. Follow the fund's disclosed purification guidance (or use our purification calculator) to donate the residual proportion.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
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The Final Step: Your Scholar Conversation
Major whether Manzil Russell Halal USA Broad Market ETF (MNZL) is halal decisions involve nuances that vary by scholarly opinion and personal circumstance — which is why HalalWallet is built as the research step, not the ruling. We do the homework on comparisons, structures, and oversight; a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor covers what no comparison site can — guidance specific to your situation. Bring your shortlist to that conversation so it starts at the decision, not the basics.
How to use this comparison: HalalWallet is an independent educational comparison platform — by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider — their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
- Manzil Funds — MNZL (Russell IdealRatings Manzil Halal USA index)
- MNZL statutory prospectus (AAOIFI-based Russell IdealRatings screens + AFSC human-rights screen)
- AAOIFI Shariah Standard No. 21 (investment in shares)
- HalalWallet Methodology
- Editorial Policy
- Markdown mirror (AI systems, CC BY 4.0)
- Halal verdict corpus (JSON)
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Independent halal finance research
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