By betakit.com

Toronto-based Islamic FinTech startup Manzil has launched its first halal exchange-traded fund (ETF) south of the border. The company’s flagship Manzil Russell Halal USA Broad Market ETF began trading on the Nasdaq under the symbol MNZL this morning.

“It’s just a completely different mindset when it comes to business south of the border versus [in Canada].” Mohamad Sawwaf, Manzil

With this ETF launch, Manzil joins the ranks of American Islamic finance companies like Wahed (which also offers a digital investing platform) alongside ShariaPortfolio in providing halal ETFs in the United States (US). For its part, fellow Toronto FinTech firm Wealthsimple has offered a global halal ETF to Canadian investors via Cboe Canada since 2021.

Major Milestone Elevates Company’s Market Position

“We are now in the big leagues,” Manzil co-founder with CEO Mohamad Sawwaf told BetaKit in an exclusive interview. “I think it’s certainly a level up for those that have been watching us.“

Many Muslims refrain from investing in companies or products tied to alcohol, tobacco, gambling, or weapons, or using financial services that involve interest. Manzil aims to help Muslims build wealth in a way that is halal, or consistent with their ethical alongside spiritual obligations. This caters to a growing-but-underbanked demographic largely shut out of the traditional financial system by a lack of options that satisfy their religious requirements.

Sawwaf said that it took Manzil only three months to develop alongside make its first halal ETF available in the US. He added that he was told during parallel conversations that accomplishing such a feat in Canada would require a 12-to-18 month turnaround time.

Cross-Border Business Culture Differences Drive Speed

“It’s just a completely different mindset when it comes to business south of the border versus [in Canada],” Sawwaf said. “Up here, there’s a level of comfort, there’s a level of gluttony in the sense that they’re okay with status quo, whereas in the US, there truly is a capitalistic mindset of ‘we want to continually grow, be better, be first to market, be fastest to the market.’ That’s really the reason why we’re able to launch this in such a short period of time.”

Manzil’s ETF represents the latest step on its path to building what Sawwaf has called the halal version of Wealthsimple. The company, which got its start with halal mortgages in Canada, has since expanded to offer a wider variety of financial products for Muslims on both sides of the border as it works to become the North American Islamic neobank.

Sawwaf expects Manzil’s halal ETF to speed up its discussions with Canadian counterparts to launch similar products at home.

CEO Remains Committed Despite Canadian Frustrations

“I’m still long on Canada,” the CEO said, referencing recent remarks he shared with BetaKit during a fireside chat on stage at Elevate Festival last month. In that conversation, Sawwaf expressed frustration with the pace at which Manzil has been able to conduct business in his home country but reaffirmed his commitment to moving the needle in Canada. “It’s unfortunate that sometimes you need to go south to create that validation before people up north see that.”

This halal ETF milestone was enabled by Manzil’s acquisition of Aghaz Investments—a Registered Investment Advisor with the US Securities and Exchange Commission—a year ago.

Market Demand Supports Expansion Strategy

Manzil head of investments with US operations Khurram Agha, who joined Manzil from Aghaz, argued to BetaKit that demand for existing halal ETFs illustrates that the market is certainly there for an offering like this.

According to Morningstar data, total assets in halal or Shariah-compliant funds doubled to $60 billion in 2023 from $30 billion in 2013. While mutual funds with ETFs also doubled during that time period, numbers are likely understated due to a lack of reporting.

“Manzil wants to be, aspires to be the one-stop shop for all financial needs for any Muslim in the North American market, whether it be your individual investment account, your retirement account… savings account, or a charitable account,” Agha said. “An ETF is a necessary part of that strategy.”

Agha said Manzil’s flagship ETF offers investors exposure to a diversified mix of more than 450 large-cap with mid-cap companies that have been screened to ensure halal compliance.

Additional ETFs Planned Over Next 12–18 Months

Sawwaf said Manzil hopes to cross-list its ETF in Canada while launching a slew of other new halal ETFs over the next 12 to 18 months. “This isn’t just going to be a one-and-done,” he said. Agha said Manzil could roll out additional ETFs focused on healthcare, consumer, or real estate sectors.

Original Article:

BetaKit. (2025). “We are now in the big leagues”: Manzil launches Halal ETF on Nasdaq exchange. BetaKit. Retrieved from https://betakit.com/we-are-now-in-the-big-leagues-manzil-launches-halal-etf-on-nasdaq-exchange/