Canada’s Manzil leveraging on US markets to catalyze Shariah growth strategy

With the November 2025 launch of its first ETF on the US Nasdaq, Toronto-based fintech Manzil was executing a clear vision to scale rapidly, access institutional capital and broaden investor reach – crystalizing plans made possible in the year after buying its US peer Aghaz Investments.

Launching the Manzil Russell Halal USA Broad Market ETF, with an additional ethical overlay, reflects a calculated strategy to tap the world’s deepest ETF market, Investments and USA Operations Head Khurram Agha told IFN Investor.

“The US provides both depth and credibility. Local Canadian markets are growing, but they often lack the investor density and infrastructure required for rapid expansion. Being in the US allows us to access liquidity, visibility and institutional relationships that are difficult to replicate elsewhere.”

Early traction suggests the strategy is paying off. Despite launching just ahead of the holiday season, the Manzil Russell Shariah ETF reached nearly US$2 million in AuM within its first month and is targeting to reach US$10-15 million in the first quarter of 2026.

While Canadian investors can already access this ETF via Nasdaq, Khurram said cross-border considerations and currency impact can limit the Canadian home-market growth. Manzil is exploring a potential Toronto Stock Exchange listing in 2026, though no formal plans have been announced.

For the ETF specifically, a dual screening methodology excludes several tech names like NVIDIA, Google and Microsoft – corporates with services which have been either seen to be abused by or linked to various warring regimes.

“We want customers to invest in companies that are both Shariah compliant and ethically responsible. Some stocks may meet Shariah criteria but may be linked to practices or conflicts certain investors prefer to avoid,” explained Khurram.

Starting with the Russell 1000 index, the ETF identifies Shariah compliant securities using Ideal Ratings – then applies an additional ethical filter assessing human rights, occupational practices and corporate responsibility. This screening removed roughly 20 stocks from the initial 470, leaving a diversified portfolio of about 450 equities.

Sector exposure is broad, with IT accounting for roughly 20% and only two or three holdings exceeding 10% each. Despite excluding high-return tech names, Khurram said the ETF has tracked market performance while providing enhanced downside protection through diversification.

Institutional access adds another strategic advantage with the US focus. Khurram said conversations are underway with major platforms such as Chase and Fidelity, opportunities that would be difficult to secure in smaller markets.

Distribution relies on content-driven engagement rather than conventional marketing, in line with US regulatory restrictions. Initial outreach has targeted North America via conferences, Nasdaq events and content partnerships.