What is VanEck Semiconductor ETF's Shariah compliance score?

VanEck Semiconductor ETF (SMH) has a Shariah compliance score of 87/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does VanEck Semiconductor ETF pass AAOIFI screening?

VanEck Semiconductor ETF (SMH) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (SMH: 0.0%), (3) interest-bearing deposits below 30% (SMH: 0.0%), and (4) prohibited income below 5% (SMH: 1.9%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for VanEck Semiconductor ETF stock?

VanEck Semiconductor ETF (SMH) has a non-permissible income ratio of 1.90%. Muslim investors should purify this percentage of any dividends received and capital gains realized from SMH shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen VanEck Semiconductor ETF for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for VanEck Semiconductor ETF (SMH) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about SMH's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

SMH: Is VanEck Semiconductor ETF Halal?

VanEck Semiconductor ETF

NASDAQETFUS

$556.53

-0.46%

Market Cap: 67.0B

Compliance Status

Halal

Screened on Jul 17, 2026 · AAOIFI Standard 21

Very Good

87Score

Is VanEck Semiconductor ETF (SMH) halal? Halal. Based on AAOIFI screening, VanEck Semiconductor ETF passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 87/100 (Grade: A).

Basket rule

Well clear of the limit

An ETF is halal when non-compliant holdings stay under 5% of the basket by weight.

2.4% of 5.0% limit

99% of the basket's holdings were screened individually.

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 17, 2026

Basket Composition

99% of basket screened

ETFs are baskets of many stocks. AAOIFI-aligned rule: basket is halal when haram weight is under 5%. The purification share is the weighted prohibited-income contribution of the underlying holdings.

96%

Halal96%

Doubtful0%

Not Halal2%

Unknown2%

Top Holdings

NVDANVIDIA CorpHalal19.64%TSMTaiwan Semiconductor Manufacturing Co LtdHalal11.84%AVGOBroadcom IncHalal7.79%ASMLASML Holding NVHalal4.99%KLACKLA CorpHalal4.74%ADIAnalog Devices IncHalal4.70%AMDAdvanced Micro Devices IncHalal4.68%TXNTexas Instruments IncHalal4.61%LRCXLam Research CorpHalal4.60%AMATApplied Materials IncHalal4.59%

Compliance History

Halalnow
since Jun 2026
Not Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: N/AData source: FMP-LOOKTHROUGH

Purify Your SMH Dividends

1.9% non-compliant income

SMH has 1.9% prohibited income. Calculate exactly how much of your dividends to donate.

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Frequently Asked Questions

Is VanEck Semiconductor ETF (SMH) halal to invest in?

Based on AAOIFI Standard 21 screening, VanEck Semiconductor ETF (SMH) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did VanEck Semiconductor ETF get a A compliance rating?

VanEck Semiconductor ETF's compliance grade is determined by AAOIFI Standard 21 screening, a two-step process: (1) qualitative screen for prohibited business activities and (2) quantitative check of debt, interest deposits, and prohibited income ratios. Scroll up to see the detailed ratio breakdown.

What could change VanEck Semiconductor ETF's Shariah verdict?

VanEck Semiconductor ETF's verdict is recalculated whenever the fund rebalances or holdings change materially. If the haram-weight of underlying holdings crosses 5% (the AAOIFI threshold for fund look-through), the verdict will flip to Not Halal. HalalScreener rescreens ETFs at each rebalance cycle.

How often is VanEck Semiconductor ETF re-screened for Shariah compliance?

VanEck Semiconductor ETF (SMH) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.