XLE
Energy Select Sector SPDR Fund
Is XLE Halal?
Energy sector ETF — oil and gas businesses with environmental concerns.
What You Should Know
XLE is an energy-sector pass-through ETF. Its March 31, 2026 report shows $43.762 billion of assets and disclosed incidental interest/securities-lending income of about 0.06% of fund investment income. Energy activity is generally permissible, but underlying issuers and environmental stewardship require separate review; it is not Sharia-screened.
⚠️ Concerns
- •Environmental ethics concerns
- •Minor interest income across holdings
Current quantitative Sharia screen
Based on Semiannual Shareholder Report figures for the period ended 2026-03-31; calculated 2026-07-14.
0 / 43,761.56
47.065 / 43,761.56
17.835 / 43,761.56
0.281 / 495.453
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 0.00%, liquidity/assets is 0.11%, receivables-plus-cash/assets is 0.04% and disclosed incidental non-compliant income is 0.06%; issuer activity remains incomplete at fund level.
- Financial
- Pass
- Overall
- Incomplete
Fund-level debt, liquidity and receivables-plus-cash are below examined MSCI asset limits, but a universal underlying prohibited-revenue numerator is unavailable.
- Financial
- Pass
- Overall
- Incomplete
Fund-level financial ratios are below the examined Malaysia limits; the pass-through portfolio remains qualitatively incomplete.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series and fund-level prohibited-income convention are not stored.
Business-activity disclosure
XLE is a pass-through energy-sector ETF holding oil, gas and energy companies. Energy production is generally permissible, but the fund does not provide a school-neutral prohibited-revenue allocation for every underlying issuer.
Limitation: The report provides fund-level holdings and income, not a universal prohibited-revenue allocation across all issuers.
Purification
The fund discloses only aggregate incidental interest and securities-lending income; no scholar-approved purification percentage is inferred for underlying issuer dividends.
Inputs, assumptions and primary sources
- Amounts are USD millions converted from XLE's unaudited March 31, 2026 semiannual statements.
- The fund reports USD 43,761.560217 million of total assets, USD 47.065001 million of affiliated investments, and USD 17.835304 million of dividends, securities-lending and sale receivables.
- Six-month investment income totals USD 495.452553 million. Disclosed interest and securities-lending income of USD 0.280755 million is used as the incidental non-compliant-income numerator; the underlying sector revenue mix is not allocated by the fund.
- 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.
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