Confusing myself with ETFs and Zakat’s

Salaam, before I start I’m well aware nothing on here is to be taken as fatwa and I should be in contact with a mufti if needed, I just need some advice and think this is the perfect place for it

Currently most of my money is in an S&S ISA which is invested in an iShares Shariah Compliant ETF. Can anyone tell me what amount of Zakat I should be paying on this? If I have say £10,000 would it just be 2.5% of that so £250 or anything else I need to calculate

Jazakallah in advance

Assalaamu alaykum,

If you are trading the ETF where you are simply buying to resell with profit, and not holding as a long term investment, then Zakat is due on the full value.

If you are holding it for long term and to resell, then we are almost certain that Zakat is not due on the full amount as equities are composed of several non-zakatable assets too.

You may consider a proxy. Some have stated 26%, some have stated 30%.

Just to be extra cautious, perhaps take 40% as a proxy and pay on that, that should cover your Zakat liability Insha’Allah.

Allah knows best