SMH
VanEck Semiconductor ETF
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.
0 / 71,600
0 / 71,600
0 / 71,600
- Financial
- Incomplete
- Overall
- Incomplete
Reported fund-level proxy ratios are below the examined asset limits, but a comparable prohibited-income numerator is unavailable.
- 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.
- Financial
- Pass
- Overall
- Incomplete
The available fund-level proxy ratios are below the examined Malaysia limits; look-through activity remains incomplete.
- 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.
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