Advice [on Shariah compliant investment products]

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dl7848
Posts: 440
Joined: Tue Mar 25, 2014 12:46 am

Re: Advice for [Religious Investor]

Post by dl7848 »

d0gerz wrote:
Blue wrote:Would mention zero coupon bonds to your friend.
I think for the purposes of the OP this wouldn't work either. The only difference between a regular bond and a zero coupon bond is the timing of interest payments.

Though I wonder if it is acceptable to keep bonds in the portfolio but then just donate the interest earned to charity?
I doubt that would work...at least if the fund chosen was Vanguard's EDV. I've read a number of people complaining that EDV is involved in Securities Lending. IOW, a customer's shares are lent to someone who wants to short the index and Vanguard receives interest in return. That doesn't seem in the spirit of "plain vanilla" lending. Vanguard is basically helping speculators bet against the credit of the United States.
Nomadix
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Re: Advice for [Religious Investor]

Post by Nomadix »

bUU wrote:For what specific investment objectives, and under what specific conditions? It seems to me that the answer to that question would necessarily need to follow from a scenario presented as per http://www.bogleheads.org/forum/viewtop ... f=1&t=6212
Just with regards to using the below funds to gain as broad an exposure as possible with lowest possible fees for equity portion of portfolio. Assume these will compose entirety of equity portfolio:

AMAGX (Growth) ER 1.13%
AMANX (Income) ER 1.20%
AMDWX (Developing) ER 1.61%
ADJEX ER 0.98%
IMANX ER 1.59
clubby
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Re: Advice for [Religious Investor]

Post by clubby »

off topic comment deleted by admin alex
Leeraar
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Re: Advice for [Religious Investor]

Post by Leeraar »

I'll try to be careful here:

Many people put constraints on their investments based on their personal beliefs, religious or otherwise. Which is fine, it just restricts choices and makes decisions more difficult.

Prompted by the question, "How do others deal with this issue?" i googled to find this:

http://www.nytimes.com/2012/01/26/world ... .html?_r=0

Are these "sukuks" not an acceptable investment?

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")
Alex Frakt
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Re: Advice [on Shariah compliant investment products]

Post by Alex Frakt »

admin note - thread title edited for clarity. Also, please stick to the investing issues in your responses.
Nomadix
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Re: Advice [on Shariah compliant investment products]

Post by Nomadix »

Ok, as an aside, does anyone know a broker that allows purchase of funds sold on foriegn exchanges into a retirment account (ex ROTH IRA)?

Specificaly looking at funds below on London exchange:

iShares MSCI World Islamic (ISWD.L) ER 0.6%
iShares MSCI USA Islamic (ISUS.L) ER 0.5%
iShares MSCI Emerging Markets Islamic (ISEM.L) ER 0.85%
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Munir
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Re: Advice [on Shariah compliant investment products]

Post by Munir »

As mentioned previously, there are different schools of thought within the religion under discussion. Giving genric advice may not solve the issue for the invidual asking the questions. I recommend that this individual should seek guidance in these issues from their own spiritual leader/guide whom he/she follows and trusts before embarking on any of the well-intended suggestions mentioned in this conversation. Presentation of the ideas discussed here could be part of the consultation.
HurdyGurdy
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Re: Advice [on Shariah compliant investment products]

Post by HurdyGurdy »

There may be some interesting ideas in a related (and very good ) thread. http://www.bogleheads.org/forum/viewtop ... 0#p2043120

Basically, it would be possible to compile a list of acceptable companies, from either the Dow Jones Islamic indices or from the holdings of the Amana Funds (like http://www.amanafunds.com/retail/amagx_ ... onth.shtml), or from other screens (discussing it with your religious authorities, etc) and then use a tool like motifinvesting or http://www.folioinvesting.com to make a portfolio of them (hey, here is one" https://www.motifinvesting.com/motifs/e ... #/overview)
countdown
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Re: Advice [on Shariah compliant investment products]

Post by countdown »

[off topic comments deleted by admin alex]
Nomadix
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Joined: Sun Apr 28, 2013 1:12 pm

Re: Advice [on Shariah compliant investment products]

Post by Nomadix »

Worth taking a look at this discussion:

http://www.bogleheads.org/forum/viewtop ... st=2048707
JTravers
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Re: Advice [on Shariah compliant investment products]

Post by JTravers »

Nomadix wrote:Ok, as an aside, does anyone know a broker that allows purchase of funds sold on foriegn exchanges into a retirment account (ex ROTH IRA)?

Specificaly looking at funds below on London exchange:

iShares MSCI World Islamic (ISWD.L) ER 0.6%
iShares MSCI USA Islamic (ISUS.L) ER 0.5%
iShares MSCI Emerging Markets Islamic (ISEM.L) ER 0.85%
Interactive Brokers.
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