AAOIFI Shari'a screening · Reviewed July 20, 2026
Is QQQ halal in 2026?
No. Invesco QQQ fails Shariah screening: about 16.1% 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, roughly 16.1% of the basket by weight is non-compliant as of the July 2026 screening, more than three times the 5% tolerance scholars allow for funds. Screened alternatives such as SPTE and HLAL capture much of the same tech-heavy exposure and pass.
AAOIFI ratio breakdown
| Ratio | Value | Threshold | Verdict |
|---|---|---|---|
| Non-compliant holdings / basket weight | ~16.1% | <5% | Fail |
| Individually halal holdings / basket weight | ~82% | Pass |
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, but it still is not clean: in HalalScreener's July 2026 holdings screening about 82% of the basket by weight was individually halal, 2% doubtful, and 16% non-compliant. Failing names include companies with prohibited business lines or failed financial ratios; Walmart, for example, sits at about 3.4% of the fund and fails screening on its alcohol and tobacco retailing.
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 roughly 16.1%, 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 16% just as directly as the passing 84%.
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. About 16.1% of QQQ's Nasdaq-100 basket by weight is non-compliant as of July 2026, against the 5% tolerance for funds. 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 about 82% of QQQ, but the roughly 16% that fails (for example Walmart, at about 3.4% of the fund, on alcohol and tobacco retailing) 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: non-compliant weight far above the 5% tolerance.