SMH

VanEck Semiconductor ETF

HALAL — DATA INCOMPLETEetf

Is SMH Halal?

Semiconductor ETF — same as SOXX. Permissible technology.

What You Should Know

SMH tracks leading semiconductor companies. VanEck reported Nvidia at 18.54%, TSMC at 8.97%, Broadcom at 5.61% and Micron at 5.46% on 23 June 2026; the portfolio is not Sharia-screened.

⚠️ Concerns

  • Not Sharia-screened
  • Minor defense applications
  • Concentrated large-cap technology exposure

Current quantitative Sharia screen

Based on Daily issuer holdings and net-assets page figures for the period ended 2026-06-24; calculated 2026-07-14.

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

0 / 71,600

Cash + interest-bearing securities / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 71,600

Receivables + cash / assets
0.00%Within limit
Below 50% under FTSE Yasaar

0 / 71,600

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

Reported fund-level proxy ratios are below the examined asset limits, but a comparable prohibited-income numerator is unavailable.

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

The available fund-level proxy ratios are below the examined MSCI asset limits; the underlying portfolio has no universal prohibited-income classification.

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

The available fund-level proxy ratios are below the examined Malaysia limits; look-through activity remains 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 fund-level prohibited-income convention are not stored.

Business-activity disclosure

SMH is a semiconductor pass-through ETF. Semiconductor production and equipment are generally permissible, but the portfolio is not Sharia-screened and some issuers have defense or mixed end uses.

Limitation: The issuer discloses sector exposure and fund size but no universal prohibited-revenue allocation across every underlying issuer.

Purification

SMH passes through distributions from underlying issuers; no scholar-approved purification percentage is disclosed.

Inputs, assumptions and primary sources
  • VanEck reported USD 71.60 billion in total net assets as of 24 June 2026.
  • Daily holdings included Nvidia 18.54%, TSMC 8.97%, Broadcom 5.61%, Micron 5.46% and AMD 5.32%; the portfolio was 99.99% information technology as of 31 May 2026.
  • The issuer page does not provide a school-neutral prohibited-revenue allocation or fund-level debt, cash and receivable lines; zeroes mean not separately reported, not that every underlying issuer has zero exposure.

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.

🧾
Own SMH? Purify your portfolio.
Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.
Order Your Report — $49 →
Track SMH and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →

Want to screen more assets?

Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.

Go to Halal Checker →