🎉 Commission-free investing is coming to Zoya! Get Early Access

ETFs or individual stocks?

As a new investor, should I hand pick my stocks or should I go for ETFs? From what I’ve read there are halal ETFs like SPUS, SPRE, HLAL however I recently opened an online broker account and when I search for these on their website I don’t get any results. They have Vanguard S&P 500 and a lot of other ETFs but not everything on there is halal so what to do?

Also, if there are any books or videos that you recommend to someone new to investing feel free to suggest them. Any other help and advice would be appreciated. Thanks!

Edit: just want to point out that I have taken a course and I’ve watched videos on YT but I feel like I still need to learn more.

By periodically investing in an index fund, the know-nothing investor can actually out-perform most investment professionals.” – Warren Buffett

If Buffett recommends index funds, who are we to disagree? :wink:

Investing in individual stocks, while more risky, allows you to bet on companies that you personally believe in for a chance to take home significantly higher returns. On the other hand, index funds are great for broad exposure, instant diversification, and if you prefer a more hands-off approach to investing

Luckily, you don’t have to choose one over the other. It’s completely fine if you want to put, say, 80% of your portfolio into an index fund and then use the remaining 20% to experiment with your own picks. You can adjust the split as you become more comfortable over time.

Regarding the specific ETFs that you mentioned—if they’re unavailable through your current broker (and assuming you’re located outside the US), consider switching to something like Interactive Brokers. Alternatively, if you prefer to stick with your current broker, you can use Zoya’s new fund screener feature to filter down to the shariah compliant holdings of an ETF or mutual fund and then invest in them individually.

Check out this thread for some suggestions:

1 Like

Thank you for responding! I’m in the UAE and I opened an account with eToro. I’ve researched for the best online brokers available in the UAE and eToro was always recommended. They have the option to deposit using debit/credit cards which I prefer and with no charges. It’s also minimal and easy to use for beginner investors and I like the social aspect of it so I don’t know if I want to switch tbh. I have to say though I’m really excited for this new feature, I saw your thread yesterday about it and I’m going to be a Pro subscriber, even though I’m new here the app is clearly worth it and the updates you release are great and helpful.

Going to check out that thread you linked for some book suggestions. Thanks :slight_smile:

1 Like