AAOIFI Shari'a screening · Reviewed September 27, 2026
Is QQQ halal in 2026?
No. Invesco QQQ fails Shariah screening: 6.8% of the Nasdaq-100 basket by weight is non-compliant against a 5% tolerance, even though its top tech holdings are individually halal. The data and the halal tech alternatives.
No. The Invesco QQQ Trust is not halal. QQQ tracks the Nasdaq-100, and while its biggest holdings (NVIDIA, Apple, Microsoft) are individually halal, 6.8% of the basket by weight is non-compliant on the holdings screen dated October 19, 2026, well above the 5% tolerance scholars allow for funds, so HalalScreener rates it Not Halal. Screened alternatives such as SPTE and HLAL capture much of the same tech-heavy exposure and pass.
Live screen
| Verdict | Not Halal |
| Score | 0/100 |
| Grade | F |
| Non-compliant holdings (basket weight) | 6.8% (< 5%) |
| Basket screened individually | 98% |
| Screened | October 19, 2026 |
QQQ owns the 100 largest non-financial companies on Nasdaq. That filter keeps out the big banks, which is why QQQ screens cleaner than an S&P 500 fund such as VOO (20.3% non-compliant), but it still is not clean: in HalalScreener's October 2026 holdings screening, 98% of the basket by weight was screened company by company, and 6.8% of the basket was non-compliant. Most of the failing names are ordinary businesses that borrow too much. T-Mobile is one: nothing wrong with selling phone plans, but its interest-bearing debt is 51.5% of market capitalization against a 30% ceiling.
The 5% basket rule decides the verdict. A diversified fund can carry a small incidental share of non-compliant holdings, under 5% by weight, with the related income purified. At 6.8%, QQQ is well past that tolerance, so the fund fails even though most of what it holds would pass individually. Buying QQQ means owning the failing share just as directly as the passing majority.
If you want tech-heavy halal exposure, you have real options. SPTE (SP Funds S&P Global Technology ETF) offers screened technology exposure; HLAL (Wahed FTSE USA Shariah ETF) is US large-cap with a strong tech tilt after banks are excluded; and building a direct basket of the individually halal mega-caps (NVDA, AAPL, MSFT and the like) replicates most of QQQ's return profile with full control. HalalScreener screens each of these tickers and any US-listed ETF basket free, so verify before you buy.
Methodology
Verdict applies the methodology of AAOIFI Shari'a Standard No. 21: Financial Papers (Shares and Bonds): qualitative screening for prohibited business activities, plus three quantitative caps. Interest-bearing debt < 30% of market cap, interest-bearing securities < 30%, and non-permissible income < 5% of revenue.
Sources and scholars
- AAOIFI Shari'a Standard No. 21: Financial Papers (Shares and Bonds)
- Contemporary Shariah boards on the 5% basket tolerance for funds
- SP Funds Shari'a Board (SPTE) and Wahed Invest Shari'a Supervisory Board (HLAL) for the screened alternatives
Frequently asked
Is QQQ halal in 2026?
No. 6.8% of QQQ's Nasdaq-100 basket by weight is non-compliant as of October 2026, against the 5% tolerance for funds, so HalalScreener rates it Not Halal. The fund fails even though its largest tech holdings are individually halal.
Why does QQQ fail if Apple, Microsoft, and NVIDIA are halal?
Because a fund is judged on its whole basket. The individually halal names make up most of QQQ, but the 6.8% that fails (T-Mobile, for example, on its debt) is far beyond the 5% incidental tolerance. Owning the fund means owning those names too.
What is the halal alternative to QQQ?
For screened tech exposure, SPTE (SP Funds S&P Global Technology ETF) is the closest thematic fit, and HLAL provides US large-cap exposure with a natural tech tilt. Holding the individually halal mega-caps directly is the third route. Screen whichever you choose before buying.
Is QQQM halal?
No. QQQM tracks the same Nasdaq-100 index as QQQ with a lower fee, so its basket and its verdict are the same: Not Halal, with non-compliant weight of 8.3%, far above the 5% tolerance.
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