Vanguard S&P 500 ETF (VOO) - Not Halal (Non-Compliant)
Vanguard S&P 500 ETF (VOO) 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
- VOO 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 Vanguard S&P 500 ETF
The fund manager employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.
Frequently Asked Questions
Is Vanguard S&P 500 ETF (VOO) stock halal to invest in?
According to AAOIFI Shariah screening standards, Vanguard S&P 500 ETF (VOO) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Vanguard S&P 500 ETF have any interest income?
Interest income data for Vanguard S&P 500 ETF is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if VOO stock is Shariah-compliant?
VOO 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 S&P 500 ETF stock reviewed for Shariah compliance?
Vanguard S&P 500 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.