USO
United States Oil Fund
Is USO Halal?
Oil futures ETF — uses futures contracts which involve gharar.
What You Should Know
USO's March 31, 2026 report shows $2.744 billion of assets and very high cash/collateral ratios because the fund is a commodity pool. Oil is a permissible commodity in many treatments, but USO's futures and swaps introduce gharar, leverage, settlement and speculation questions; the examined asset screens fail and scholar views differ.
⚠️ Concerns
- •Futures contracts involve gharar
- •Speculative mechanism
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
0 / 2,744.085
3,820.218 / 2,744.085
2,400.225 / 2,744.085
12.007 / 986.39
- Financial
- Fails
- Overall
- Fails
Debt/assets is 0.00%, liquidity/assets is 139.22% and receivables plus cash/assets is 87.47%; these exceed the examined asset limits even though incidental income is about 1.22%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 139.22% and receivables plus cash/assets is 87.47%, above the examined MSCI total-assets limits; the derivative structure is separately qualitative.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 139.22%, above the examined Malaysia limit; this is not an official SAC classification of a commodity pool.
- Financial
- Not calculated
- Overall
- Fails
Market-cap denominator methods do not apply cleanly to a commodity pool whose exposure is obtained through futures and swaps.
Business-activity disclosure
USO is a commodity pool that obtains crude-oil exposure through futures and over-the-counter swaps rather than owning operating oil companies. Oil is a permissible commodity in many treatments, but derivative contract form, settlement, leverage, speculation and gharar require scholar-level review.
Limitation: The filing reports derivatives, collateral and trading gains rather than operating-business revenue; it does not provide a school-neutral contract-compliance conclusion.
Purification
USO discloses interest and money-market dividend income, but no scholar-approved purification percentage is inferred from a commodity-pool income statement.
Inputs, assumptions and primary sources
- Amounts are USD millions from USO's March 31, 2026 Form 10-Q.
- The report shows USD 2,744.085 million of total assets, USD 2,300.218 million of cash and trading-account cash, USD 1,520.000 million of money-market funds and USD 100.007 million of broker, share-sale, dividend, interest and transaction-fee receivables.
- The three-month income statement reports USD 986.390 million of total income, including USD 4.482 million of interest and USD 7.525 million of dividend income; both are treated as incidental/non-compliant income for this conservative fund-level calculation.
- USO obtains crude-oil exposure through futures and swaps; contract form, delivery, leverage and gharar concerns remain qualitative and methodology-dependent.
- 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.
Similar ETFs
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →