Top 3 Halal Canadian ETFs

Analysis, ETF Investing, Halal Investment |

Written by Haider Saleem
Journalist and Political Analyst | LinkedIn / X

From electric vehicles to global semiconductors to diversified Islamic equity screens, here are three Canadian ETFs that combine sector relevance, growth exposure, and Shariah compliance:

1.    iShares Global Electric and Autonomous Vehicles Index ETF (XTSE:XDRV)
2.    Wealthsimple Shariah World Equity Index ETF (NEOE:WSHR)
3.    Global X Semiconductor ETF (XASX:SEMI)

1. iShares Global Electric and Autonomous Vehicles Index ETF (XTSE:XDRV)

  • Expense Ratio: 0.44%
  • 1-Day Return (June 2025): +1.35%
  • AUM: ~$4.86 million CAD

XDRV offers exposure to companies developing or benefiting from the growth of electric and autonomous vehicles. The fund tracks the Morningstar Global Electric & Autonomous Vehicles Select Index and holds names like BYD, Panasonic, and Qualcomm.

Despite short-term volatility – posting a -5.58% 1-year return as of May 2025 – the ETF is designed to capture long-term trends in EV adoption and mobility innovation. Its sector focus on manufacturing, hardware, and transport technologies its holdings reflect innovation across the supply chain: battery tech, chipmakers, and mobility systems.

2. Wealthsimple Shariah World Equity Index ETF (NEOE:WSHR)

  • Expense Ratio: 0.56%
  • 1-Day Return (June 2025): +0.80%
  • Shariah Certification: Ratings Intelligence Partners

WSHR is Canada’s only fully Shariah-compliant broad equity ETF. It excludes businesses involved in alcohol, gambling, weapons, financial services, and other non-permissible sectors. It also screens for debt and interest-based financial ratios. The fund is reviewed quarterly by Ratings Intelligence Partners, who also oversee its compliance and rebalancing.

The ETF tracks the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index. Holdings include Coca-Cola, Novartis, and Johnson & Johnson, and its geographic spread covers the U.S., Japan, and Europe.

3. Global X Semiconductor ETF (XASX:SEMI)

  • Expense Ratio: 0.45%
  • 1-Day Return (June 2025): +0.22%
  • AUM: ~$345 million AUD (Australian dollars)

Although domiciled in Australia, SEMI is accessible to Canadian investors through global trading platforms that support international ETFs. It tracks the Solactive Global Semiconductor 30 Index and includes TSMC, NVIDIA, and Broadcom as top holdings.

This fund capitalizes on the global chip boom, which continues to expand with demand for AI, IoT, and cloud infrastructure. SEMI posted a 1-year return of 6.03% and a robust 3-year annualized return of 34.12% as of June 2025.

Why These ETFs Matter for Halal Investing

  • XDRV offers exposure to cutting-edge, real-asset innovation with minimal debt-heavy financial companies.
  • WSHR is explicitly Shariah-certified and optimized for volatility and quality.
  • SEMI provides targeted access to a sector with tangible assets and limited non-compliant exposure.

Each ETF also carries unique risks: XDRV’s sector can be volatile; WSHR’s geographic exposure may shift with rebalancing; and SEMI, while tech-focused, can reflect cyclical swings in global demand.

References

Shariah screening data was sourced from Musaffa’s classification platform. Expense ratio and return figures reflect independent analysis based on financial filings and earnings reports by the financial analyst.

  1. BlackRock, iShares Global Electric and Autonomous Vehicles Index ETF Factsheet, May 2025
  2. Wealthsimple, WSHR Overview and Shariah Screening Documentation, June 2025
  3. Global X ETFs Australia, SEMI Product Disclosure & Factsheet, June 2025

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