ProShares UltraPro QQQ (TQQQ) - Not Halal (Non-Compliant)
ProShares UltraPro QQQ (TQQQ) 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
- TQQQ 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 ProShares UltraPro QQQ
The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The index is designed to measure the performance of 100 of the largest Nasdaq-listed non-financial companies. Under normal circumstances, the fund will obtain leveraged exposure to at least 80% of its total assets in components of the index or in instruments with similar economic characteristics. The fund is non-diversified.
Frequently Asked Questions
Is ProShares UltraPro QQQ (TQQQ) stock halal to invest in?
According to AAOIFI Shariah screening standards, ProShares UltraPro QQQ (TQQQ) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does ProShares UltraPro QQQ have any interest income?
Interest income data for ProShares UltraPro QQQ is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if TQQQ stock is Shariah-compliant?
TQQQ 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 ProShares UltraPro QQQ stock reviewed for Shariah compliance?
ProShares UltraPro QQQ'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.