Vanguard Energy ETF

VDE: Is Vanguard Energy ETF Halal?

Vanguard Energy ETF

AMEXFinancial ServicesUS

$180.17

+2.04%

Market Cap: 11.9B

Compliance Status

Not Halal

Screened on Sep 1, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Vanguard Energy ETF (VDE) halal? Not Halal. Based on AAOIFI screening, Vanguard Energy ETF has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Vanguard Energy ETF (VDE) Not Halal, 0/100, grade F under AAOIFI Standard 21 look-through, screened Sep 1, 2026. Source: https://halalscreener.app/en/stock/VDE

Basket rule

Over the limit

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

19.3% of 5.0% limit

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

About Vanguard Energy ETF

Vanguard World Fund - Vanguard Energy ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets of the United States. It invests in stocks of companies operating across energy sectors. The fund invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the MSCI US Investable Market Index (IMI)/Energy 25/50, by using full replication technique. Vanguard World Fund - Vanguard Energy ETF was formed on September 23, 2004 and is domiciled in the United States.

Sector: Financial Services · Industry: Asset Management

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 1, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

  • Basket-weighted haram holdings exceed 5% (19.3%)

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.

72%
19%
Halal72%
Doubtful7%
Not Halal19%
Unknown2%
Fiscal: N/AData source: FMP-LOOKTHROUGH

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Vanguard Energy ETF (VDE) halal to invest in?
Vanguard Energy ETF (VDE) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Vanguard Energy ETF get a F compliance rating?
Vanguard Energy 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 Vanguard Energy ETF's Shariah verdict?
Vanguard Energy 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 Vanguard Energy ETF re-screened for Shariah compliance?
Vanguard Energy ETF (VDE) 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: Sep 1, 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.