Invesco S&P 500 Momentum ETF (SPMO) - Questionable
Invesco S&P 500 Momentum ETF (SPMO) is classified as Questionable 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
- Doubtful
- Reason
- SPMO is an ETF. Individual stock screening does not apply to ETFs — review the fund's underlying holdings for Shariah compliance.
Financial Ratios
About Invesco S&P 500 Momentum ETF
The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is designed to measure the performance of approximately 100 stocks in the S&P 500® Index that have the highest "momentum score." In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a "momentum style" of investing emphasizes investing in securities that have had better recent performance compared to other securities. It is non-diversified.
Frequently Asked Questions
Is Invesco S&P 500 Momentum ETF (SPMO) stock halal to invest in?
According to AAOIFI Shariah screening standards, Invesco S&P 500 Momentum ETF (SPMO) is currently classified as Questionable. This is based on both business activity and financial ratio screening.
Does Invesco S&P 500 Momentum ETF have any interest income?
Interest income data for Invesco S&P 500 Momentum ETF is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if SPMO stock is Shariah-compliant?
SPMO 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 S&P 500 Momentum ETF stock reviewed for Shariah compliance?
Invesco S&P 500 Momentum 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.