Index and ETF

Salam Alaikum

I’ve been checking some ETFs such as SPUS and HLAL and they do have some non shariah compliant percentage , which would need to be purified.
Can the same be done with Nasdaq100, purifying the profits by donating the non compliant part to charity?

I’ve also researched a lot and there doesn’t seem to be a fatwa that directly addresses purifying ETFs or Indexes. They only addressed stocks and applied a 5% shariah compliance limit.

So, if for example the Nasdaq100 index or the SPUS ETF has 7% non shariah compliant income.
Can I just donate the 7% non shariah compliant profit to charity to purify the rest of my profits?

Basically, no. You need to stick to the Islamic funds such as SPUS and HLAL as they are available to you to invest in.

Sharing my response to this question from a different thread:

If you’re in the UK and don’t have access to M1 Finance, you can use Trading212 instead.

Thanks for your response, Saad.

I was able to get in touch with a Shariah scholar and they endorsed my approach.

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