EEM

iShares MSCI Emerging Markets ETF

HARAM — DATA INCOMPLETEetf

Is EEM Halal?

Emerging markets ETF — heavily weighted in banks and tech conglomerates.

What You Should Know

EEM's February 28, 2026 report shows $31.455 billion of assets. Disclosed interest and securities-lending income is about 2.31% of investment income, while the fund's emerging-market holdings include Chinese technology conglomerates, banks and other conventional financials. The portfolio is not Sharia-screened and underlying issuers still require review.

⚠️ Concerns

  • Chinese banks and financials
  • Tencent/Alibaba exposure
  • No Sharia screening

Current quantitative Sharia screen

Based on N-CSR figures for the period ended 2026-02-28; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 31,455.319

Cash + interest-bearing securities / assets
2.12%Within limit
Below 33.333% under FTSE Yasaar

666.164 / 31,455.319

Receivables + cash / assets
2.17%Within limit
Below 50% under FTSE Yasaar

682.849 / 31,455.319

Non-compliant income / revenue
2.31%Within limit
No more than 5% under FTSE Yasaar

3.621 / 156.485

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt/assets is 0.00%, liquidity/assets is 2.12% and receivables plus cash/assets is 2.17%; disclosed incidental income is about 2.31%, while activity classification remains incomplete.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt/assets, liquidity/assets and receivables plus cash/assets are below the examined MSCI asset limits, but underlying issuer activity is not classified by a universal prohibited-revenue numerator.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt/assets and liquidity/assets are below the examined Malaysia limits; the pass-through portfolio remains qualitatively and methodologically incomplete.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A licensed historical market-cap series and a fund-level prohibited-income convention are not stored.

Business-activity disclosure

EEM is an emerging-market pass-through ETF. The portfolio includes Chinese technology conglomerates, banks, financial services and mixed activities that are not uniformly screened by the fund.

Limitation: The report provides holdings and income lines but no school-neutral prohibited-revenue allocation across every underlying issuer.

Purification

EEM discloses incidental interest and securities-lending income, but no scholar-approved purification percentage is inferred from the aggregate fund distribution.

Inputs, assumptions and primary sources
  • Amounts are USD millions from EEM's February 28, 2026 shareholder report.
  • The report shows USD 31,455.319 million of total assets, USD 39.123 million of cash and foreign currency, USD 627.041 million in money-market funds and USD 643.726 million of listed receivables.
  • Interest and securities-lending income totals USD 3.621 million against USD 156.485 million of investment income, or about 2.31%.
  • Chinese technology conglomerates, banks and other conventional financials are qualitative look-through observations, not a universal prohibited-revenue percentage.
  • ETF look-through ratios are not an official FTSE, MSCI or Malaysia classification.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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