Is Wahed Dow Jones Islamic World ETF (UMMA) 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.

UMMA, the Wahed Dow Jones Islamic World ETF, is the international half of Wahed's two-fund U.S.-listed lineup. Where HLAL covers screened U.S. equities, UMMA covers everything else — Shariah-compliant companies domiciled outside the United States, spanning developed and emerging markets. It seeks to track the Dow Jones Islamic Market International Titans 100 Index, which measures the largest ex-U.S. companies that pass Islamic screens, and it is actively managed with a formal incorporation of ESG data, which Wahed highlights as a first among U.S.-listed Islamic ETFs.

The compliance foundation is well documented. Constituents must clear both business-activity exclusions and financial-ratio screens: interest-bearing debt under 30% of total assets, cash plus interest-bearing securities under 30% of total assets, and non-permissible income under 5% of revenue. The fund is certified to AAOIFI standards by the Shariyah Review Bureau, whose Shariah Supervisory Board leads ongoing supervision and Shariah audit, and Ratings Intelligence Partners performs the screening and the purification calculation. Wahed publishes the per-share amount to purify annually, so investors can cleanse the small residual non-compliant income.

The reason UMMA matters is diversification. A halal equity portfolio built only from screened U.S. funds is concentrated in one market; UMMA provides the compliant international exposure that is otherwise hard to obtain, because conventional world indexes are full of the foreign banks and insurers that fail Shariah screens. The trade-offs are the usual international ones — currency risk, higher emerging-market volatility, and a screened universe narrower than the full international index. Held alongside HLAL or SPUS, UMMA completes a globally diversified halal equity allocation. Apply the annual purification, hold long-term, and avoid margin.

Business Activity Screen

An actively managed ETF investing in Shariah-compliant global companies excluding U.S.-domiciled names — developed and emerging markets — seeking returns similar to the Dow Jones Islamic Market International Titans 100 Index (the largest ex-U.S. companies passing Shariah screens). It also formally incorporates ESG data.

Companies must pass Shariah screening interpreted by subject-matter experts: exclusion of impermissible business activities and financial-ratio limits — total interest-bearing debt under 30% of total assets, cash plus interest-bearing securities under 30% of total assets, and non-permissible income under 5% of revenue. The fund is certified by the Shariyah Review Bureau's Shariah Supervisory Board to AAOIFI standards; screening/purification calculations are performed by Ratings Intelligence Partners. Wahed publishes the per-share purification amount annually.

Conditions

Apply Wahed's published annual purification amount for UMMA to your holding. Expect international/EM volatility and currency risk; 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.

• Shariyah Review Bureau (UMMA's Shariah Supervisory Board)

  The SSB certified the Wahed Dow Jones Islamic World ETF (UMMA) as compliant in light of AAOIFI Shariah standards, and leads ongoing supervision and Shariah audit — with financial screens of 30% debt/assets, 30% cash+interest-bearing securities/assets, and 5% non-permissible income.

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• Mainstream AAOIFI-aligned view

  A scholar-certified, Dow Jones Islamic-screened international equity ETF that removes impermissible sectors and over-leveraged companies and publishes purification is permissible passive/active exposure, subject to purification and avoiding leverage.

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Purification

Wahed publishes the per-share amount to purify for UMMA annually (calculated by Ratings Intelligence Partners). Donate that amount to charity to cleanse the small residual non-compliant income — our purification calculator can help.

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