IWM
iShares Russell 2000 ETF
Is IWM Halal?
Small-cap ETF — heavy financial sector exposure among small caps.
What You Should Know
IWM's March 31, 2026 report shows $81.583 billion of assets. Disclosed interest and securities-lending income is about 8.07% of fund investment income, which fails the examined FTSE-style 5% income test; its broad small-cap universe also contains many conventional banks and financial businesses. This is a fund-level analysis, not an official index classification.
⚠️ Concerns
- •Heavy bank/financial exposure in small caps
- •No Sharia screening
Current quantitative Sharia screen
Based on N-CSR figures for the period ended 2026-03-31; calculated 2026-07-14.
0 / 81,583.091
788.002 / 81,583.091
127.512 / 81,583.091
71.032 / 880.388
- Financial
- Fails
- Overall
- Fails
Debt/assets is 0.00%, liquidity/assets is 0.97% and receivables plus cash/assets is 0.16%; disclosed incidental income is about 8.07%, above the examined 5% limit.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables plus cash/assets are below the examined MSCI asset limits, but the underlying portfolio is not classified by a universal prohibited-revenue numerator.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and liquidity/assets are below the examined Malaysia limits; the pass-through portfolio remains qualitatively and methodologically incomplete.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series and a fund-level prohibited-income convention are not stored.
Business-activity disclosure
IWM is a broad Russell 2000 pass-through ETF. Small-cap constituents include conventional banks, financial services, insurance and other 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
IWM discloses securities-lending and interest income, but no scholar-approved purification percentage is inferred from the aggregate fund distribution.
Inputs, assumptions and primary sources
- Amounts are USD millions from IWM's March 31, 2026 annual report.
- The report shows USD 81,583.091 million of total assets, USD 14.387 million of cash and foreign currency, USD 773.615 million in money-market funds and USD 113.125 million of listed receivables.
- Interest and securities-lending income totals USD 71.032 million against USD 880.388 million of investment income, or about 8.07%.
- The FTSE-style income result is a fund-level calculation, not an official index classification; underlying small-cap business activity remains incomplete.
- 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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