InvestingAugust 21, 20261 min read

Is a Robo-Advisor Halal? Wealthfront, Betterment & Cash Sweep

Robo-advisors often auto-invest in unscreened ETFs and pay interest on cash. Shariah issues with Wealthfront, Betterment, and similar apps.

Short answer: Default robo-advisor portfolios are usually unscreened index ETFs plus a cash sweep that may earn riba. That inherits index fund problems. A robo that only buys Islamic ETFs and pays no interest on cash is a different product. Not a fatwa.

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This article is educational and not a fatwa. Consult a certified Islamic scholar.