XLU

Utilities Select Sector SPDR Fund

DOUBTFUL — DATA INCOMPLETEetf

Is XLU Halal?

Utilities — permissible service but extreme debt structure.

What You Should Know

XLU holds utility companies. State Street reported electric utilities at 65.15% and multi-utilities at 26.70% on 13 July 2026; the core service is permissible, while issuer leverage remains a concern.

⚠️ Concerns

  • Very high utility debt
  • Interest payments dominant
  • Not Sharia-screened

Current quantitative Sharia screen

Based on Daily issuer holdings and assets-under-management page figures for the period ended 2026-07-13; calculated 2026-07-14.

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

0 / 23,755.84

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

0 / 23,755.84

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

0 / 23,755.84

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; underlying issuer leverage and prohibited income are not universally classified.

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 utility leverage 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

XLU holds utility companies whose core electricity, gas and water services are generally permissible, but the existing qualitative review flags substantial conventional leverage and interest exposure. It is not Sharia-screened.

Limitation: The issuer discloses utility categories and holdings but no universal prohibited-revenue allocation or issuer-level debt convention for the whole fund.

Purification

XLU passes through distributions from underlying utilities; no scholar-approved purification percentage is disclosed.

Inputs, assumptions and primary sources
  • State Street reported USD 23,755.84 million in assets under management as of 13 July 2026.
  • The fund's industry allocation was electric utilities 65.15%, multi-utilities 26.70%, independent power and renewable producers 4.25%, gas utilities 2.10% and water utilities 1.80%; top holdings included NextEra, Southern, Duke and Constellation.
  • 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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