Direxion Daily Semiconductor Bu (SOXL) - Not Halal (Non-Compliant)
Direxion Daily Semiconductor Bu (SOXL) 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
- SOXL 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 Semiconductor Bu
The fund invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index, that, in combination, provide 3X daily leveraged exposure to the index, consistent with the fund's investment objective. The index is a rules-based, modified float-adjusted market capitalization-weighted index that tracks the performance of the thirty largest U.S. listed semiconductor companies. The fund is non-diversified.
Frequently Asked Questions
Is Direxion Daily Semiconductor Bu (SOXL) stock halal to invest in?
According to AAOIFI Shariah screening standards, Direxion Daily Semiconductor Bu (SOXL) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Direxion Daily Semiconductor Bu have any interest income?
Interest income data for Direxion Daily Semiconductor Bu is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if SOXL stock is Shariah-compliant?
SOXL 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 Semiconductor Bu stock reviewed for Shariah compliance?
Direxion Daily Semiconductor Bu'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.