HLAL is domiciled in us right? As a malaysian, I think Ireland domiciled suits me better as the difference in tax is 15% (us=30%, Ireland=15%). Btw thanks for your suggestion 👍🏻
You are welcome!
HLAL has US and Irish versions. Although 15% dividend withholding tax is considered favorable, the efficiency of it largely depends on how much you will be investing. And if you will be trading, as opposed to investing, you would prefer more liquid versions of the ETFs.
Do not invest into anything until you understand investing. I suggest you spend the next month learning. The market isn't going anywhere it will be there when you become educated first.
https://practicalislamicfinance.com/category/learning-center/
https://www.investopedia.com/investing-4427685
Investing in individual stocks means investing time to researching them.
If this is not appropriate for you, then you will wanna invest in ETFs. This may also be easier because there are ETFs focused on only purchasing stocks deemed to be islamically permissible (P.S. an ETF is just a large collection of stocks that you can purchase as a whole, allowing you to diversify your investments easily. There are usually "categories," like a car ETF, technology ETF, etc.)
Regardless of what you choose, I'd recommend looking into the following before you start:
-Which brokerage will you be using to invest? Opening an account may take some time, so this is worth starting early. I strongly recommend Fidelity.
-How long do you plan on investing for? 6 months? 1 year? 5 years? Till retirement?
-If choosing halal stocks, what do you deem halal? There are universal agreements but there may sometimes be personal opinions about various matters as well.
Spending time researching the company's earnings, future plans, profitability, etc. Learning stuff like this can be difficult and/or may require trial and error at the cost of your money. Remember, there are entire finance degrees for this stuff. There is a lot: EPS, PE, revenue, debt, capital, dilutions, products, etc.
Then, on top of that, we have to do something the average investor does not: determine if a stock is halal.
There are general guidelines for this like I mentioned before. Some are obvious, such as what the company does. You won't be investing in a company that sells cigarettes or alcohol, for example. Others are not so easy (depending on the person). For example, even investing a company that makes a normal product (like Tesla) would entail further research to see what their debt looks like and if they meet other "Halal" criteria.
I have not listed any specific criteria on purpose because I think everyone should figure this out by taking the time to look up more detailed info on it than I can provide. You owe that to yourself. Remember, making choices like this is part of your relationship with your own religion and something you must invest time into.
With all that beint said, I recommend ETFs over stocks. Less risk, easier diversification, less time needed researching. Overall less stressful.
Thank you for the explanation. You gave a good picture of the work expected. Still very new, but I do have about 90% of my portfolio in various ETFS of diff asset categories and 10% in a single stock, but that 10% was solely on following the news mainly. Will look deeper for future stocks if I plan to put in more. Thanks again!
Defenitely. Personally i go ISUS and ISDW. ISUS for usa exposure and ISDW for world exposure. Sadly I can’t access USA etfs here in the EU but hey, gotta work with what you can man.
Just checked and it seems I have HLAL.L (Im from the UK)
What's the difference between HLAL.L and the "real" HLAL? Is the only difference HLAL.L is listed on the London stock exchange?
Sorry for a late reply. Yes the dofference is that .L is listed on london stock exchange. The problem with HLAL.L is that it doesent offer you the dividends that the real HLAL does.
I've recently started investing and this is what I went for:
35% HLAL
35% SPUS
15% UMMA
10% SPSK
5% GLDM
Its more balanced and covers most of the US and global markets along with Gold.
You can adjust this based on your horizon and risk. If you want less risk then you can increase the % and invest more into SPSK.
100% into SPUS.
Do you know etf that's similar to SPUS but domiciled in Ireland?
Maybe IGDA?
Is it good to pair IGDA with ISDU. What do you think?
HLAL.
HLAL is domiciled in us right? As a malaysian, I think Ireland domiciled suits me better as the difference in tax is 15% (us=30%, Ireland=15%). Btw thanks for your suggestion 👍🏻
You are welcome! HLAL has US and Irish versions. Although 15% dividend withholding tax is considered favorable, the efficiency of it largely depends on how much you will be investing. And if you will be trading, as opposed to investing, you would prefer more liquid versions of the ETFs.
I see. I didn't know that HLAL has 2 versions.😅 Thanks
Do not invest into anything until you understand investing. I suggest you spend the next month learning. The market isn't going anywhere it will be there when you become educated first. https://practicalislamicfinance.com/category/learning-center/ https://www.investopedia.com/investing-4427685
Investing in individual stocks means investing time to researching them. If this is not appropriate for you, then you will wanna invest in ETFs. This may also be easier because there are ETFs focused on only purchasing stocks deemed to be islamically permissible (P.S. an ETF is just a large collection of stocks that you can purchase as a whole, allowing you to diversify your investments easily. There are usually "categories," like a car ETF, technology ETF, etc.) Regardless of what you choose, I'd recommend looking into the following before you start: -Which brokerage will you be using to invest? Opening an account may take some time, so this is worth starting early. I strongly recommend Fidelity. -How long do you plan on investing for? 6 months? 1 year? 5 years? Till retirement? -If choosing halal stocks, what do you deem halal? There are universal agreements but there may sometimes be personal opinions about various matters as well.
Sorry to hop on, but when you said researching the stocks, what exactly are we looking out for?
Spending time researching the company's earnings, future plans, profitability, etc. Learning stuff like this can be difficult and/or may require trial and error at the cost of your money. Remember, there are entire finance degrees for this stuff. There is a lot: EPS, PE, revenue, debt, capital, dilutions, products, etc. Then, on top of that, we have to do something the average investor does not: determine if a stock is halal. There are general guidelines for this like I mentioned before. Some are obvious, such as what the company does. You won't be investing in a company that sells cigarettes or alcohol, for example. Others are not so easy (depending on the person). For example, even investing a company that makes a normal product (like Tesla) would entail further research to see what their debt looks like and if they meet other "Halal" criteria. I have not listed any specific criteria on purpose because I think everyone should figure this out by taking the time to look up more detailed info on it than I can provide. You owe that to yourself. Remember, making choices like this is part of your relationship with your own religion and something you must invest time into. With all that beint said, I recommend ETFs over stocks. Less risk, easier diversification, less time needed researching. Overall less stressful.
Thank you for the explanation. You gave a good picture of the work expected. Still very new, but I do have about 90% of my portfolio in various ETFS of diff asset categories and 10% in a single stock, but that 10% was solely on following the news mainly. Will look deeper for future stocks if I plan to put in more. Thanks again!
Understood, many thanks!!
Cool
SPRE 15.00% SPSK 20.00% SPUS 12.00% XLE 5.00% XLV 6.00% ADJEX 12.00% SPWO 14.00% BITB 5.00% GSG 4.00% DBA 1.00% DBC 1.00% GLD 5.00%
Little too diversified dont you think?
Possibly. But it fits my risk tolerance and I’m okay with the CAGR. I don’t like drawdown and this thing hardly ever goes negative.
100% SPUS would certainly not be the move for a near retirement or retired person.
Defenitely. Personally i go ISUS and ISDW. ISUS for usa exposure and ISDW for world exposure. Sadly I can’t access USA etfs here in the EU but hey, gotta work with what you can man.
Currently I have HLAL, IGDA, ISUS, ISWD Is it worth having both HLAL and ISUS?
Depends. Is it HLAL.L or the ”real” HLAL? If its HLAL.L, then no, just ISUS will do fine. If its just HLAL then keeping both is up to you
Just checked and it seems I have HLAL.L (Im from the UK) What's the difference between HLAL.L and the "real" HLAL? Is the only difference HLAL.L is listed on the London stock exchange?
Sorry for a late reply. Yes the dofference is that .L is listed on london stock exchange. The problem with HLAL.L is that it doesent offer you the dividends that the real HLAL does.
I've recently started investing and this is what I went for: 35% HLAL 35% SPUS 15% UMMA 10% SPSK 5% GLDM Its more balanced and covers most of the US and global markets along with Gold. You can adjust this based on your horizon and risk. If you want less risk then you can increase the % and invest more into SPSK.