AdvisorShares MSOS Daily Levera (MSOX) - Not Halal (Non-Compliant)
AdvisorShares MSOS Daily Levera (MSOX) 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
- MSOX 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 AdvisorShares MSOS Daily Levera
The fund will enter into one or more swap agreements intended to produce economically-leveraged investment results relative to the returns of the U.S. Cannabis ETF. The U.S. Cannabis ETF primarily invests in exchange-listed equity securities, including common and preferred stock, of mid- and small-capitalization companies, and in total return swaps intended to provide exposure to such companies. The fund is non-diversified.
Frequently Asked Questions
Is AdvisorShares MSOS Daily Levera (MSOX) stock halal to invest in?
According to AAOIFI Shariah screening standards, AdvisorShares MSOS Daily Levera (MSOX) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does AdvisorShares MSOS Daily Levera have any interest income?
Interest income data for AdvisorShares MSOS Daily Levera is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if MSOX stock is Shariah-compliant?
MSOX 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 AdvisorShares MSOS Daily Levera stock reviewed for Shariah compliance?
AdvisorShares MSOS Daily Levera'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.