Salams. I wanted to ask if we can invest with Vanguard UK in their pre-made portfolios-the Lifestrategy portfolios. If not-can we still invest by creating our own portfolio of companies that are shariah compliant?
Most of the investments listed on the IFF require substantial income input and / or the fees are too high.
Has anyone else on the forum done anything similar with Vanguard investments?
Salaams
I too think the Vanguard Life Strategy Funds are one of the âbestâ out there, highly regarded by financial advisors and consumer advice groups.
BUT they are not Sharia compliant so I have not invested in them.
In my opinion one of the key reasons why Vanguard is attractive is because of the super low charges for the platform and funds.
Trying to replicate these funds elsewhere will negate the low charges and so the advantages of using Vanguard will be lost.
In my opinion the Funds themselves consist of equities/assets that are available elsewhere, maybe slightly different proportions, so no real advantage there. It is the low charges that make the difference.
I am waiting to see if over time, they offer Sharia compliant Funds for the UK (like they do in Malaysia) or maybe another company will offer something. I am with Wahed while I wait but when I showed my non Muslim friends my charges, they felt it was quite high. Maybe Wahed will reduce their charges going forward too.
I think it is better to at least start investing now with Shariah compliant providers, like Wahed, even if things are not perfect and look at any options as they come about in future. Happy enough to support Wahed with my custom at this moment in time, at least it is a halal option where there were none just a few years ago.
Any thoughts from anyone else?
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Salaams,
From what I understand, the Vanguard funds are composed of passive funds. Could you do a DIY approach - for example, for the stocks proportion invest in âiShares MSCI World Islamic UCITS ETF GBPâ?
The Bonds proportion is more tricky: you could continue with Wahed for this part, or try a different diversifying asset class such as gold, property, infrastructure etc?