LQD
iShares iBoxx Investment Grade Bond ETF
Is LQD Halal?
Corporate bond ETF — riba.
What You Should Know
BlackRock's February 28, 2026 statements report $31.328 billion of unaffiliated corporate bonds, $3.026 billion of affiliated money-market investments and $1.372 billion of unaffiliated interest income. Conventional bond coupons are riba, so the quantitative and qualitative screens fail.
⚠️ Concerns
- •Corporate interest-bearing bonds
- •Riba
- •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 / 35,119.783
34,393.844 / 35,119.783
765.366 / 35,119.783
1,371.924 / 1,391.181
- Financial
- Fails
- Overall
- Fails
Interest-bearing securities/assets are 97.93% and disclosed interest income is 98.62% 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
LQD's core activity is owning conventional investment-grade corporate bonds and earning contractual interest.
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 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.
- LQD reports $31,328.167512 million of unaffiliated corporate bonds, $3,026.249547 million of affiliated money-market investments, $39.426599 million of cash and $725.939309 million of receivables against $35,119.782967 million of total assets.
- Total investment income is $1,391.180864 million, including $1,371.923792 million of unaffiliated interest; the conservative prohibited-revenue input treats the 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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