US Islamic ETFs clock strong performance in Q2 2025

GLOBAL: Islamic ETF funds in the US delivered the strongest performance in Q2 2025, compared to global counterparts, based on tracking by the IFN Investor Funds Database. The AuM of US-based Islamic funds rose US$40 million in total value, from US$2.59 billion to US$2.63 billion, while charting an average three-month return of 10.31% in this quarter.

In terms of returns, Indonesia posted the highest for Q2 2025 at 12.96%, while its total Islamic funds AuM remained stable at US$15.15 million. Turkiye followed with a 12.09% three-month return, despite a slight decrease in AuM from US$2.38 billion to US$2.36 billion.

Other key Islamic ETF markets were largely unchanged in terms of assets over the quarter, while maintaining moderate returns. ETFs in Malaysia delivered a quarterly return of 6.22%, with total AuM holding at US$151.16 million. The UAE and Saudi Arabia saw quarterly returns of 5.57% and 4.36% respectively, with total assets at US$111.64 million and US$1.53 billion. The Republic of Ireland posted a quarterly return of 6.09% return on US$3.21 billion in assets.

Australia and Pakistan both posted negative returns at -1.23% and -1.24% with asset levels declining over the quarter. Australia’s ETF total AuM dropped from US$21.6 million to US$21.33 million, while Pakistan’s AuM declined from US$2.3 million to US$2.25 million.