Defiance Daily Target 2X Long S (SMCX) - Not Halal (Non-Compliant)
Defiance Daily Target 2X Long S (SMCX) 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
- SMCX 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 Defiance Daily Target 2X Long S
The fund is an actively managed exchange traded fund (“ETF”) that attempts to achieve two times (200%) the daily percentage change in the share price of the underlying security by employing derivatives, namely swap agreements and/or listed options contracts. The fund is non-diversified.
Frequently Asked Questions
Is Defiance Daily Target 2X Long S (SMCX) stock halal to invest in?
According to AAOIFI Shariah screening standards, Defiance Daily Target 2X Long S (SMCX) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Defiance Daily Target 2X Long S have any interest income?
Interest income data for Defiance Daily Target 2X Long S is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if SMCX stock is Shariah-compliant?
SMCX 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 Defiance Daily Target 2X Long S stock reviewed for Shariah compliance?
Defiance Daily Target 2X Long S'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.