WTW: Faith-Based Investing Is Entering a New Era
For decades, investing in line with your faith meant accepting compromises — on diversification, cost, quality, or performance. According to new research from consultancy WTW, published September 18, that trade-off is fading: faith-based investing is evolving from a niche concept into a sophisticated segment of the institutional market.
Key facts
- Source: WTW research note, “A new paradigm for faith-based investing,” September 18, 2026.
- The thesis: the winners won’t be those who merely screen out the prohibited, but those who engineer portfolios with institutional-grade rigour, diversification, and cost discipline — while staying fully consistent with faith.
- The numbers: global Islamic finance assets hit $5,985 billion in 2024 and are projected to reach $9,719 billion by 2029 (ICD–LSEG Islamic Finance Development Report 2025).
- The landscape: Christian and Shariah-based funds dominate faith-based investing, with Islamic funds the largest and most institutional segment.
From screening to engineering
WTW’s core argument is a shift in ambition: early faith-based products were defined by what they excluded. The next generation is defined by what they build — portfolios spanning public equities, fixed income, private markets, and impact investments, pursuing financial objectives and values alignment together. Modern Shariah funds increasingly look, behave, and price like their conventional institutional peers.
What it means for Canadian investors
This is the institutional tailwind behind the products appearing on this site’s radar — from new Shariah ETFs to the gradual arrival of halal fixed-income options (see our halal ETF comparison and halal fixed income guide). The practical takeaway for DIY investors: the menu of faith-aligned building blocks keeps getting deeper, which makes portfolio construction — not product availability — the binding constraint. That’s exactly what our portfolio builder is for.
Source
Reported by WTW. Figures and quotes above are from the original reporting; anything not confirmed there is marked as unknown.
FAQ
What did the WTW research conclude?
That faith-based investing is evolving from a niche into a sophisticated institutional segment, and the old trade-off between values alignment and diversification, cost, or performance is fading.
How big is Islamic finance now?
Citing ICD–LSEG data, WTW puts global Islamic finance assets at $5,985 billion in 2024, projected to reach $9,719 billion by 2029.