HYG
iShares iBoxx High Yield Bond ETF
Is HYG Halal?
High-yield (junk) bond ETF — riba with added speculative risk.
What You Should Know
BlackRock's February 28, 2026 statements report $16.312 billion of unaffiliated high-yield corporate bonds, $2.772 billion of affiliated money-market investments and $1.057 billion of unaffiliated interest income. Riba and elevated credit risk make the quantitative and qualitative screens fail.
⚠️ Concerns
- •High-yield bond interest (riba)
- •Speculative and default risk
- •Money-market and securities-lending exposure
Current quantitative Sharia screen
Based on Annual Financial Statements figures for the period ended 2026-02-28; calculated 2026-07-14.
0 / 19,446.366
19,088.258 / 19,446.366
362 / 19,446.366
1,057.192 / 1,083.54
- Financial
- Fails
- Overall
- Fails
Interest-bearing securities/assets are 98.16% and disclosed interest income is 97.57% of investment income, while the core activity is conventional debt.
- Financial
- Fails
- Overall
- Fails
Liquidity and interest-bearing investments are far above the examined 33.33% total-assets limit; the core activity is conventional corporate debt.
- Financial
- Fails
- Overall
- Fails
Interest-bearing investments are above the examined Malaysia financial limits and the fund's core activity is conventional lending.
- Financial
- Not calculated
- Overall
- Fails
Market-cap methods are not applicable to a bond fund; total-assets screens already fail on core conventional debt exposure.
Business-activity disclosure
HYG's core activity is owning below-investment-grade corporate bonds and earning contractual interest, with additional credit and speculative risk.
Limitation: None material for the core conventional-bond conclusion; secondary activities such as securities lending do not alter it.
Purification
The filing discloses substantial interest income from the fund's core holdings; purification does not convert a conventional high-yield bond ETF into a permissible investment.
Inputs, assumptions and primary sources
- Amounts are USD millions converted from the February 28, 2026 iShares iBoxx annual statements.
- HYG reports $16,311.952934 million of unaffiliated corporate bonds, $2,772.355622 million of affiliated money-market investments, $3.949669 million of cash and $358.050218 million of receivables against $19,446.365771 million of total assets.
- Total investment income is $1,083.539652 million, including $1,057.191721 million of unaffiliated interest; the conservative prohibited-revenue input treats high-yield bond-fund income as non-compliant core activity.
- Collateral on securities lending is a fund liability but is not treated as interest-bearing investment debt in this screen.
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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