Tradr 2X Short TSLA Daily ETF (TSLQ) - Not Halal (Non-Compliant)
Tradr 2X Short TSLA Daily ETF (TSLQ) 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
- TSLQ 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 Tradr 2X Short TSLA Daily ETF
Under normal market circumstances, the fund will maintain at least 80% exposure to financial instruments that provide inverse exposure to two times the daily performance of TSLA. It is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve on a daily basis, before fees and expenses, -200% performance of TSLA for a single day, not for any other period, by entering into one or more swaps on TSLA. The fund is non-diversified.
Frequently Asked Questions
Is Tradr 2X Short TSLA Daily ETF (TSLQ) stock halal to invest in?
According to AAOIFI Shariah screening standards, Tradr 2X Short TSLA Daily ETF (TSLQ) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Tradr 2X Short TSLA Daily ETF have any interest income?
Interest income data for Tradr 2X Short TSLA Daily ETF is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if TSLQ stock is Shariah-compliant?
TSLQ 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 Tradr 2X Short TSLA Daily ETF stock reviewed for Shariah compliance?
Tradr 2X Short TSLA Daily 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.
