Stocks and other assets

Is investing in the S&P 500 halal?

Answered by the ShariaQuant team

A plain S&P 500 fund is not. It holds every company in the index, banks and insurers included, along with companies that fail the debt and interest ratios, so you own the prohibited businesses alongside the permitted ones. A fund that tracks a Shariah version of the index, built only from companies that pass, can be held, with purification still owed on the small share of income they earn from interest.

The rules an Islamic fund must follow

This is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.

More on stocks and other assets

Are stocks halal?What are the AAOIFI screening ratios?Do I need to purify my stock dividends?Are ETFs halal?

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