Vanguard Morningstar Growth ETF

VUG: Is Vanguard Morningstar Growth ETF Halal?

Vanguard Morningstar Growth ETF

AMEXFinancial ServicesUS

$89.73

+0.97%

Market Cap: 399.4B

Compliance Status

Not Halal

Screened on Aug 14, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

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

Basket rule

Over the limit

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

5.3% of 5.0% limit

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

About Vanguard Morningstar Growth ETF

This exchange-traded fund (ETF) is designed to mirror the investment performance of the CRSP US Large Cap Growth Index. It provides investors with a straightforward avenue to gain exposure to a broad spectrum of America's leading growth-oriented enterprises. The fund operates on a passively managed basis, utilizing a full-replication methodology to meticulously track its benchmark index. For approximately 75% of its total holdings, the fund adheres to strict concentration guidelines: it is generally prohibited from purchasing more than 10% of the voting shares of any single issuer or allowing its investment in any one issuer to exceed 5% of its overall assets. However, these limits may be adjusted if necessary to closely match the composition of its target index, and they do not apply to securities issued by the U.S. government or its associated agencies.

Sector: Financial Services · Industry: Asset Management

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 14, 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% (5.3%)

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.

93%
Halal93%
Doubtful1%
Not Halal5%
Unknown1%

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

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

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 Morningstar Growth ETF (VUG) halal to invest in?
Vanguard Morningstar Growth ETF (VUG) 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 Morningstar Growth ETF get a F compliance rating?
Vanguard Morningstar Growth 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 Morningstar Growth ETF's Shariah verdict?
Vanguard Morningstar Growth 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 Morningstar Growth ETF re-screened for Shariah compliance?
Vanguard Morningstar Growth ETF (VUG) 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: Aug 14, 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.