Sunday, November 29, 2020
Sharia Index Fund
Three of the most popular halal funds include:
- AMAGX (Amana Growth Fund)
- HLAL (Wahed's ETF)
- SPUS (Sharia Portfolio's halal filter of S&P 500)
My friend Zubair Khan and I reconstructed these with M1Finance which enables us to achieve 0% management fees saving potentially tens of thousands of dollars over decades of investing.
NOTE: This does require you to update the holdings in each of these every quarter. Every person has to update their M1Finance pie themselves, as my updates will remain my own. I'm currently building some tools to help make the process easier, feel free to reach out and I'd be happy to share.
UPDATE for Q3 2021:
Here's a quick video demo explaining how to save you some time when updating your pie:
Tip: unless you want to pull money out and understand the tax consequences, do not click on the “Sell” or “Rebalance” button in M1Finance. Selling is a taxable event.
#m1finance
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Salam,
This is really great. Just joined Halal Investors and after reading this I created M1finance account.
Couple of newbie questions- I clicked on the link you provided and I see those Pies and have added them in my own portfolio. Do I've to balance now by following the video ? Also why rebalance every quarter or so ?
Any good resource you recommend in learning M1finance ?
Jazakallah
Salam
Thanks a lot for doing this.
When are you planning to make changes in this pie?
I've updated it today. See post above for links.
I am unable to open the link. Can someone email it to me. y.ahmed5006@gmail.com
Asalam alaykul brother @sarmad. Any help or directional guidance you can offer is appreciated.
Q: how are you finding those halal funds on m1 finance because am having no yield when i search those ticker symbols or are you building from the ground up replicating those holdings? thank you
Salaam, He is reconstructing them. The tickers are not on M1 Finance. AMAGX will never be on M1 unless M1 starts offering mututal funds.
That's right, you won't find ETFs like HLAL or mutual funds like AMAGX in M1. So I'm reconstructing them (while making *some* changes based on my preference of not investing in fossil fuel companies). You can use the links above to invest directly in these (if you're in the US).
MashAllah, this is great! I'm interested in the tools you mentioned to make quarterly updates easier. Please share them. JAK.
Here's a YouTube recording on how to easily update your existing M1 portfolio: https://www.youtube.com/watch?v=tPJwMEk1-Mw