Vanguard Morningstar Value ETF (VTV) - Not Halal (Non-Compliant)
Vanguard Morningstar Value ETF (VTV) 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
- VTV 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 Morningstar Value ETF
The fund manager employs an indexing investment approach designed to track the target index, a broadly diversified index made up of the value stocks of large U.S. companies, as determined by the index provider. Under normal circumstances, it invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the stocks that make up the target index.
Frequently Asked Questions
Is Vanguard Morningstar Value ETF (VTV) stock halal to invest in?
According to AAOIFI Shariah screening standards, Vanguard Morningstar Value ETF (VTV) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does Vanguard Morningstar Value ETF have any interest income?
Interest income data for Vanguard Morningstar Value ETF is factored into the financial ratio screening under AAOIFI standards.
What guidelines are used to determine if VTV stock is Shariah-compliant?
VTV 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 Morningstar Value ETF stock reviewed for Shariah compliance?
Vanguard Morningstar Value 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.