Vanguard Information Tech ETF (VGT) - Questionable
Vanguard Information Tech ETF (VGT) 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
- VGT is an ETF. Individual stock screening does not apply to ETFs — review the fund's underlying holdings for Shariah compliance.
Financial Ratios
About Vanguard Information Tech ETF
The fund employs an indexing investment approach designed to track the performance of the index, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. It is non-diversified.
Frequently Asked Questions
Is Vanguard Information Tech ETF (VGT) stock halal to invest in?
According to AAOIFI Shariah screening standards, Vanguard Information Tech ETF (VGT) is currently classified as Questionable. This is based on both business activity and financial ratio screening.
Does Vanguard Information Tech ETF have any interest income?
Interest income data for Vanguard Information Tech ETF is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if VGT stock is Shariah-compliant?
VGT 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 Vanguard Information Tech ETF stock reviewed for Shariah compliance?
Vanguard Information Tech 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.