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Permissibility Of Gold ETF GLD

Is the gold ETF GLD traded on the New York stock exchange Shariah-compliant?

More details about the specific documentation of the fund is required for an accurate answer. However, for your information, exchange-traded funds that invest in commodities, or exchangetraded commodities,track the performance of an index and their prices rise and fall like a stock. The entity investing on behalf may own the commodity, but the investor in the entity's shares does not directly own anything except a share that tracks the index. It is a condition for an Islamic investment to be Shariah-compliant that the investor have direct ownership in the asset or service. For example, a stock in a permissible company provides direct ownership in that company, whereas a stock in an exchange-traded commodity only provides ownership in a share that tracks, not owns, the asset.

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