Direxion Daily ORCL Bull 2X ETF (ORCU) - Not Halal (Non-Compliant)
Direxion Daily ORCL Bull 2X ETF (ORCU) 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
- ORCU 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 ORCL Bull 2X ETF
The fund, under normal circumstances, invests at least 80% of its net assets (plus any borrowings for investment purposes) in the securities of ORCL and financial instruments, such as swap agreements and options, that, in combination, provide 2X daily leveraged exposure to ORCL, consistent with the fund’s investment objective. The fund is non-diversified.
Frequently Asked Questions
Is Direxion Daily ORCL Bull 2X ETF (ORCU) stock halal to invest in?
According to AAOIFI Shariah screening standards, Direxion Daily ORCL Bull 2X ETF (ORCU) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Direxion Daily ORCL Bull 2X ETF have any interest income?
Interest income data for Direxion Daily ORCL Bull 2X ETF is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if ORCU stock is Shariah-compliant?
ORCU 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 ORCL Bull 2X ETF stock reviewed for Shariah compliance?
Direxion Daily ORCL 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.