Are robo-advisors halal?
Conventional robo-advisors build portfolios of unscreened ETFs and bond funds — not compliant. Halal robo-advisors exist, and DIY with screened ETFs replicates them cheaply.
The standard robo allocation (total-market ETFs + bond ladder + TLH) fails twice: unscreened equities and interest-bearing bonds. Turning off nothing fixes it — the model portfolio is the product.
Compliant options: dedicated halal robo-advisors (Wahed and peers) run screened equity/sukuk/gold allocations under scholar oversight for a management fee; or replicate the same three-fund structure yourself — SPUS/HLAL + SPSK + a gold allocation — and rebalance annually, which is exactly the portfolio-monitoring job Penny automates without holding your money.
The conditions that matter
- Use an explicitly sharia-certified robo, or self-build with screened funds
- Check the robo's cash sweep and TLH pair choices remain within screened universes
Check your own portfolio
Penny categorizes everything you own — stocks screened live against AAOIFI-style rules with free rule-by-rule verdicts, asset classes tiered like this page, zakat and purification built in. No bank login.
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Is Wahed halal?
Wahed operates under a sharia board with published certifications and runs screened portfolios — it's the best-known halal robo. As always, certification is a strong signal you should still read.
Related
Educational summary of commonly held scholarly positions — not a fatwa or financial advice. Where scholars differ, we say so; for a binding ruling on your situation, consult your scholar. See how Penny screens.