Direxion Daily MSFT Bull 2X ETF (MSFU) - Not Halal (Non-Compliant)
Direxion Daily MSFT Bull 2X ETF (MSFU) is classified as Not Halal (Non-Compliant) according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.
Business Activity Screen
- Sector
- ETF
- Industry
- Exchange-Traded Fund
- Result
- Fail
- Reason
- MSFU appears to be a leveraged, inverse, or short ETF. These funds use derivatives and/or short-selling strategies which are not permissible under Shariah.
Financial Ratios
About Direxion Daily MSFT Bull 2X ETF
The fund will enter into one or more swap agreements with major global financial institutions whereby the fund and the global financial institution will agree to exchange the return earned on an investment by the fund invests in MSFT that is equal, on a daily basis, to 200% of the value of the fund's net assets. It is non-diversified.
Frequently Asked Questions
Is Direxion Daily MSFT Bull 2X ETF (MSFU) stock halal to invest in?
According to AAOIFI Shariah screening standards, Direxion Daily MSFT Bull 2X ETF (MSFU) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Direxion Daily MSFT Bull 2X ETF have any interest income?
Interest income data for Direxion Daily MSFT Bull 2X ETF is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if MSFU stock is Shariah-compliant?
MSFU is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.
How often is Direxion Daily MSFT Bull 2X ETF stock reviewed for Shariah compliance?
Direxion Daily MSFT Bull 2X ETF's compliance status is reviewed whenever new financial data becomes available, typically after quarterly or annual earnings reports. Market cap changes can also affect financial ratio screening results. Mizaan refreshes screening data periodically to reflect the latest filings.