VWO

Vanguard FTSE Emerging Markets ETF

HARAM — DATA INCOMPLETEetf

Is VWO Halal?

EM ETF — similar to EEM with heavy bank exposure.

What You Should Know

VWO is not Sharia-screened. Vanguard's latest holdings data included TSMC, Tencent and Alibaba, alongside financial-sector exposure that requires issuer-level review.

⚠️ Concerns

  • Underlying financial institutions require screening
  • Mixed emerging-market activities
  • No Sharia screening

Current quantitative Sharia screen

Based on Issuer product page and holdings report figures for the period ended 2026-06-30; calculated 2026-07-14.

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

0 / 163,300

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

0 / 163,300

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

0 / 163,300

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

VWO is a broad emerging-markets pass-through ETF, not a Sharia-screened vehicle. Its current portfolio includes financial-sector and mixed-activity issuers across emerging markets.

Limitation: The issuer discloses holdings and fund size but no universal prohibited-revenue allocation across the underlying issuers.

Purification

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

Inputs, assumptions and primary sources
  • Vanguard reported approximately USD 163.3 billion in total net assets as of 30 June 2026.
  • Vanguard's holdings page showed TSMC 14.64%, Tencent 2.74%, Alibaba 2.26%, MediaTek 1.62% and Delta Electronics 1.20% as of 31 May 2026; these are look-through observations, not a fund-level Sharia classification.
  • 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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