HSBC Islamic Global Equity Index Fund: its index is removing defence and weapons companies

If you hold the HSBC Islamic Global Equity Index Fund, one of the most popular halal funds on UK platforms, its index is changing this month. In short: defence and weapons companies are being removed, along with hotels, resorts and cruise lines.

Which index, and which fund?

The UK version of the HSBC Islamic Global Equity Index Fund aims to track the S&P Global 1200 Shariah Select Index. That index starts with the Shariah compliant companies in the S&P Global 1200 (large companies across the US, Europe, Japan, Canada, Australia, Asia and Latin America) and keeps those listed in the bigger markets.

On 2 November 2026, S&P Dow Jones Indices announced changes to how the index picks its companies. They take effect before the market opens on Monday 23 November 2026.

What is changing

From 23 November the index will exclude:

• The whole Aerospace & Defense industry. Companies classed in this industry are out, whatever their other business.
• Hotels, Resorts & Cruise Lines. This sub-industry is removed too.
• Companies with weapons and military involvement. Any company earning 5% or more of its revenue, in total, from military contracting, small arms, nuclear weapons, cluster munitions, anti-personnel mines, biological and chemical weapons, depleted uranium, incendiary weapons or blinding laser weapons is excluded.
• Riot control weapons. Companies earning 5% or more of revenue from these are excluded.
• Companies the screening data does not cover. If S&P has no data on a company's involvement, it is left out rather than given the benefit of the doubt.

These screens sit on top of the usual Shariah screens (no interest based finance, alcohol, gambling and so on, plus the limits on debt and interest income), which are unchanged.

Why it matters

Being Shariah compliant has always been about more than avoiding interest. Many Muslim investors have been uncomfortable that a "halal" fund could own companies whose main business is making weapons. This change addresses that directly, at the index level, so the fund should follow it without you having to do anything.

S&P describes the aim as improving the index's coverage and operational efficiency. Whatever the reason, the result is a cleaner index from an ethical point of view.

What should you do?

• Nothing urgent. If you hold the fund, the changes happen inside it. You do not need to sell or switch.
• Expect a small shift in holdings. Defence companies are a small part of a global index, so the overall effect on returns should be modest, but the fund will look slightly different after 23 November.
• Check which version you hold. HSBC runs more than one Islamic equity fund. Some versions, mostly sold outside the UK, track a different index (the Dow Jones Islamic Market Titans 100). Your platform's fund page or the factsheet tells you the benchmark.
• Keep reviewing your funds' ethics. Shariah screening is a floor, not a ceiling. It is worth knowing what your fund holds and how it is screened, which is exactly what we cover in the Academy.

Compare halal funds

You can compare the main Shariah compliant funds available in the UK, with their costs and factsheets, on our halal funds page.

Want to understand how Shariah screening works and how to choose funds with confidence? Join our free online session, An Introduction to Halal Investing, on Sunday 6 December at 8pm.

Source: S&P Dow Jones Indices, "S&P Global 1200 Shariah Select Index Methodology Update", 2 November 2026; HSBC Asset Management fund documents. This article is for education only and is not personal financial advice. The value of investments can go down as well as up.