I agree with you, Saad. The goal is not to be in and out of ETFs on a daily basis, since this defeats the purpose of holding ETFs as they are less volatile than stocks. However, when looking at the ETFs basket, there are many categories and the ones I am personally interested in are the sectors ETFs ( aka the XLs), the index ETFs: SPY+IWM, and the Qs ( QQQ and to some extent QQQJ).
XLF is straight non-compliant, XLK and XLC is a question mark to me personally: do I - as a Muslim- want to hold shares of Facebook and the like?? XLI is to me a mathematical issue: how much of the XLI revenue is made out of Defense-related companies (LMCO and the like)? Is it low enough that I can purify the income over a long period of time? The XLE is straight if you look past the debt/valuation ratio when you are buying in times of distress.
Same question actually for the Qs, IWM and the SPY: does it make sense to “buy, hold and purify”? That is the million dollar question you are well positioned to answer at Zoya.
I would humbly recommend to start with the major ETFs and get a starting point determination on them, as they do not swing between stocks too frequently, and 50% of their holdings are in 10 to 15 stocks anyways, which will ensure a compliance stability over multiple quarters, and all boils down to a Pareto law at the end. There is going to be some learning, tweaking and course-correction, but that is very fine.
Give me a buzz if you need a beta-tester or someone to bounce ideas with. I am sure there are other fellows in the community who can also be interested.