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ETF Holdings, Replication and Purification Evidence Checklist

October 30, 2026•2 min read

An ETF is a listed wrapper, not a Shariah conclusion. Investors need evidence about the index, holdings, replication, cash, securities lending, derivatives, purification and trade process before approving the exact fund.

Educational information only: This is not investment, tax or Shariah advice. Verify current fund documents and obtain personalised professional review.

1. Identify the exact ETF

Record full name, ticker, exchange, issuer, fund domicile and identifier. Avoid relying on a similar marketing name.

2. Verify the listed instrument

Confirm the exchange listing, trading currency and local or foreign access route. Record the broker and account used.

3. Read the mandate

Capture investment objective, asset classes, concentration rules and permitted instruments from the current fund documents.

4. Review the tracked index

Record index provider, methodology, review frequency and rules for additions and removals.

5. Inspect current holdings

Save the holdings file and date. An index label does not prove every constituent or weight remains unchanged.

6. Understand replication

Document physical, sampled or synthetic replication. Identify swaps, futures and collateral where used.

7. Examine cash treatment

Record cash balances, counterparties and the treatment of any income. Refer unresolved amounts for Shariah review.

8. Check securities lending

Identify whether lending is permitted, revenue allocation, collateral and controls. Confirm that the Shariah evidence covers the practice.

9. Review distributions

Record accumulating or distributing treatment, frequency, withholding and reinvestment. Reconcile provider notices to account credits.

10. Document purification

Capture the approved method, data source, calculation and payment evidence. Do not assume the broker completes the investor’s record.

11. Assess liquidity and spreads

Record market-maker arrangements, trading volume and bid-offer spread. An underlying liquid portfolio does not eliminate exchange trading costs.

12. Reconcile all fees

Separate fund cost, platform, brokerage, custody, foreign exchange and tax. Compare total costs on a consistent basis.

13. Collect Shariah evidence

Retain the current certificate or report, standard, reviewer, scope and exceptions. Check whether it covers the index and fund implementation.

14. Prepare tax and estate records

Keep acquisition cost, distributions and disposal records for a tax practitioner. Record account ownership and provider death procedures.

15. Maintain the ETF register

ETF, index and provider
Mandate, holdings and replication
Cash, lending and derivatives
Fees, liquidity and distributions
Shariah and purification evidence

Useful official starting points include the FSCA, the JSE instrument information and the issuer’s current statutory documents.

The completed file should show what the ETF owns, how it obtains exposure, which additional activities occur and what the Shariah review actually covered.

are ETFs halal South Africa

Mogamat Ali Salie

With a strong foundation in Information Technology and an M.C.S.E. certification, my journey took an unexpected turn after winning a free trip on a South African TV game show that brought me to the USA. During the dot-com bubble in 2001, I shifted my college major to Finance while working as a Junior Network Administrator — and discovered my true passion: helping people grow and protect their wealth. I began my banking career with Comerica Bank in Michigan while completing my Bachelor’s degree in Finance, then moved to Los Angeles to join Wells Fargo Bank. There, I quickly advanced through multiple roles, participated in extensive Fortune 500 training, and developed a diverse skill set in wealth management, client relations, and financial strategy. After 11 years abroad, I returned to South Africa to be closer to family, working as a Financial Adviser with Old Mutual, then Liberty Life, before being headhunted by Absa Wealth / Barclays Wealth in 2013. Since 2018, I’ve been with FNB Wealth & Investment, focusing on Ultra High Net Worth (UHNW) clients, helping them navigate complex financial and investment landscapes. 🌍 My competitive advantage comes from deeply profiling clients, understanding their goals, and leveraging international experience across the USA, UK, and South Africa. This perspective allows me to provide insight into offshore investment opportunities, global regulatory environments, and bespoke solutions that align with clients’ values and objectives. 💡 Building on this journey, as the Founder of MuslimFin Family Office — a hybrid model combining a Virtual Family Office (VFO) with a Boutique Family Office. We provide families and entrepreneurs with Islamic values-driven wealth stewardship, tailored advice, and innovative solutions that honour faith, legacy and growth. 🏃‍♂️ Beyond finance, I am passionate about running and endurance challenges. I proudly completed the Comrades Down Run in 2023 and the Comrades Up Run in 2024. As a member of the running, cycling and swimming fraternity, I'm also fortunate to be part of and participate in community initiatives and charitable causes, because true success is measured not just by what we achieve, but by how we give back.

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