State Street SPDR S&P 500 ETF T (SPY) - Not Halal (Non-Compliant)
State Street SPDR S&P 500 ETF T (SPY) 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
- SPY 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 State Street SPDR S&P 500 ETF T
The trust seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the index (the “Portfolio”), with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the index.
Frequently Asked Questions
Is State Street SPDR S&P 500 ETF T (SPY) stock halal to invest in?
According to AAOIFI Shariah screening standards, State Street SPDR S&P 500 ETF T (SPY) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does State Street SPDR S&P 500 ETF T have any interest income?
Interest income data for State Street SPDR S&P 500 ETF T is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if SPY stock is Shariah-compliant?
SPY 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 State Street SPDR S&P 500 ETF T stock reviewed for Shariah compliance?
State Street SPDR S&P 500 ETF T'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.