The MSCI World Islamic is the Sharia-compliant version of the MSCI World index: it removes companies that earn more than 5% of their revenue from prohibited activities, and those whose debt, interest-bearing cash or receivables exceed one third of their total assets. The best-known ETF that tracks it is the iShares MSCI World Islamic (ISIN IE00B27YCN58, fees of 0.30% a year, dividends paid out). Its line on the Swiss stock exchange, SIX, is due to be withdrawn on or around 15 December 2026; other global Islamic ETFs remain listed there.
When you look for a global halal ETF, the same name comes up almost every time: iShares MSCI World Islamic, often referred to by its ticker, ISWD. The fund has existed since 2007, it is the largest in its category in Europe, and for a long time it was the simplest one to buy from Switzerland. Whether you choose it or look for a replacement, you first need to understand what the MSCI World Islamic index does and what the fund adds on its own side.
This page describes MSCI's screening method, sets out the fund's main details from its official documents, explains what the withdrawal of its SIX line changes and compares the other global Islamic ETFs listed in Switzerland. The figures are as at 3 November 2026 and are given without any recommendation to buy.
What is the MSCI World Islamic index?
The MSCI World is the benchmark index for shares in developed markets: it covers the large and mid-sized companies of 23 countries, and the United States carries by far the largest weight. The MSCI World Islamic starts from this universe and keeps only the companies that meet the MSCI Islamic Index Series methodology, which has been approved by MSCI's committee of Sharia advisers.
The composition is reviewed every quarter. A company that no longer meets the criteria is removed at the following review, and one that meets them again can be added back. Like the standard index, the MSCI World Islamic weights companies by their market capitalisation, so the largest ones count for the most.
How does MSCI screen companies?
The first screen looks at business activity. A company is excluded if more than 5% of its revenue, interest included, comes from activities that the methodology treats as non-compliant: alcohol, tobacco and cannabis, pork, conventional finance, weapons, gambling, music, hotels, cinema, adult entertainment and dating sites.
The second screen looks at the balance sheet. MSCI calculates three ratios, each measured against the company's total assets: total debt; cash and interest-bearing securities; receivables and cash. A company can enter the index if each ratio is below 30%, and it leaves if any of them goes above 33.33%. This gap between the entry threshold and the exit threshold stops a company from moving in and out at every review because of a few tenths of a percentage point.
Using total assets as the denominator sets MSCI apart from the Dow Jones Islamic Market and S&P Shariah indices, which calculate their ratios on average market capitalisation. The thresholds are published in the MSCI Islamic Index Series methodology (October 2024 version); the comparison with the other index providers is in our guide to halal ETFs.
The iShares MSCI World Islamic ETF in detail
The table below is based on the fund's Swiss factsheet (September 2026), the iShares II plc prospectus dated 21 September 2026 and the SIX reference data:
| Feature | iShares MSCI World Islamic UCITS ETF |
|---|---|
| ISIN, domicile | IE00B27YCN58, Ireland (iShares II plc, BlackRock group) |
| Index | MSCI World Islamic (official name: “MSCI Developed World Islamic Index”) |
| Launch | 7 December 2007 |
| Ongoing charges (TER) | 0.30% a year |
| Replication | Physical: the fund buys the shares in the index |
| Dividends | Paid out twice a year |
| Base currency, fund size | US dollar; 1'692.51 million USD as at 30 September 2026 |
| Listings | SIX: ISWD (USD), due to be delisted on or around 15 December 2026. London: ISWD (GBP) and ISDW (USD). Xetra: IUSD (EUR) |
| Sharia oversight | Index: MSCI's Sharia committee. Fund: a panel of scholars appointed by iShares (Dr Mohamed Elgari, Sheikh Nizam Yaquby, Dr Mohd Daud Bakar) |
| Purification | Carried out by the fund since 1 January 2026: the impure portion of the dividends, calculated by MSCI, is given to charities approved by the panel |
| Representative in Switzerland | BlackRock Asset Management Schweiz AG |
Every month, the fund's Swiss factsheet gives the ten largest holdings and the breakdown by country and by sector. That is where to check the actual concentration of the fund before you buy.
What does the withdrawal of the SIX line change?
In its letter to shareholders of 15 September 2026, iShares announces that the ISWD line will be delisted from SIX on or around 15 December 2026. The fund is neither closed nor wound up: it remains listed in London and Frankfurt, and the units you hold do not change.
For an investor in Switzerland, the consequence is a practical one. After the delisting, buying or selling these units will have to go through a foreign exchange, which usually means higher market access fees than on SIX. If you hold units bought on SIX, ask your bank how it will handle your position and on what terms you will be able to sell it later. Our guide on how to buy a halal ETF sets out the costs of an order placed on a foreign exchange.
Which alternatives remain listed on SIX?
As at 3 November 2026, three other global Islamic ETFs are listed on SIX. They do not track exactly the same index as ISWD, so their holdings differ slightly:
| Fund and SIX ticker | What sets it apart |
|---|---|
| HSBC MSCI World Islamic ScreenedHIWO (USD) · IE000X9FTI22 | MSCI World Islamic Universal Screened Select index: the same universe, with additional exclusion screens. Fees 0.30%, dividends reinvested (accumulating), purification carried out by the fund. |
| Invesco MSCI ACWI Islamic M-SeriesMWIM (CHF) · IE000LFC57H7 | MSCI ACWI Islamic M-Series index: developed and emerging markets, ratios calculated on 36-month average market capitalisation, a 5% cap per issuer. Fees 0.35%, accumulating, traded in Swiss francs. How purification is handled has not been verified. |
| Invesco Dow Jones Islamic Global Developed MarketsIGDA (USD) · IE000UOXRAM8 | Dow Jones Islamic Market Developed Markets index, from a different provider (S&P Dow Jones Indices). Fees 0.40%, accumulating. The fund does not purify the income it reinvests: that is left to the investor. |
None of these funds is a like-for-like replacement for ISWD. The choice depends on what you want to hold (developed markets only, or emerging markets as well), on the trading currency, on whether dividends are paid out and on how purification is handled. The full list of UCITS Islamic ETFs is in our guide to halal ETFs.
Distributing or accumulating: what it changes
ISWD pays out its dividends twice a year. They are credited to your account and you declare them as income. The HSBC and Invesco funds listed above reinvest them instead: you receive nothing, but the reinvested income is still taxable every year, at the amount published in the price list of the Federal Tax Administration. In both cases the value of your units counts towards your taxable wealth, and a gain made when you sell is not taxed for a private investor.
For compliance, the difference lies mainly in purification. When the fund purifies its own income, you are spared the calculation. Otherwise the calculation falls to you, whether the fund distributes or accumulates. The details for each issuer are in our guide to purifying your dividends.
The index's limitations
- Concentration. The index is still dominated by large US companies, and leaving out banks and insurers gives more weight to technology and healthcare. The portfolio is therefore less diversified than its name suggests.
- Currency. The companies held are American, European or Japanese. For someone whose everyday currency is the Swiss franc, exchange rate movements come on top of share price movements, whichever trading currency you choose.
- The religious debate. The one-third thresholds rest on the view that tolerates a small proportion of debt and of interest income. Other scholars reject this principle: we present both positions on our page Are halal ETFs halal?.
- Past returns. The performance gap between the MSCI World Islamic and the standard MSCI World has varied from one period to another, in both directions. Past performance is not a reliable indicator of future performance.
This content is provided for educational purposes and does not constitute a fatwa: as questions of compliance involve differences between schools of jurisprudence, it is for each person to refer to a competent religious authority for their own situation. Nor does it constitute a recommendation to buy or sell, or investment advice within the meaning of the Financial Services Act (LSFin).