Invesco QQQ Trust, Series 1 (QQQ) - Not Halal (Non-Compliant)
Invesco QQQ Trust, Series 1 (QQQ) 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
- QQQ is a conventional ETF with significant exposure to interest-bearing securities, financial institutions, or other non-permissible sectors. Consider Shariah-compliant ETF alternatives.
Financial Ratios
About Invesco QQQ Trust, Series 1
To maintain the correspondence between the composition and weights of the securities in the trust (the "securities") and the stocks in the NASDAQ-100 Index®, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.
Frequently Asked Questions
Is Invesco QQQ Trust, Series 1 (QQQ) stock halal to invest in?
According to AAOIFI Shariah screening standards, Invesco QQQ Trust, Series 1 (QQQ) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Invesco QQQ Trust, Series 1 have any interest income?
Interest income data for Invesco QQQ Trust, Series 1 is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if QQQ stock is Shariah-compliant?
QQQ 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 Invesco QQQ Trust, Series 1 stock reviewed for Shariah compliance?
Invesco QQQ Trust, Series 1'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.