Is XLV (Health Care Select Sector SPDR Fund) halal?

Q: Is XLV (Health Care Select Sector SPDR Fund) halal?

HALAL: Healthcare sector ETF — generally permissible with some insurance exposure. XLV is a healthcare-sector pass-through ETF. Its March 31, 2026 report shows $38.933 billion of assets and disclosed incidental interest/securities-lending income of about 0.10% of fund investment income. Core healthcare activity is generally permissible, but health-insurance and other holdings require issuer-level review; it is not Sharia-certified.

← Back to Halal Checker

XLV

Health Care Select Sector SPDR Fund

HALAL — DATA INCOMPLETEetf

Is XLV Halal?

Healthcare sector ETF — generally permissible with some insurance exposure.

What You Should Know

XLV is a healthcare-sector pass-through ETF. Its March 31, 2026 report shows $38.933 billion of assets and disclosed incidental interest/securities-lending income of about 0.10% of fund investment income. Core healthcare activity is generally permissible, but health-insurance and other holdings require issuer-level review; it is not Sharia-certified.

⚠️ Concerns

•Includes health insurance companies (gharar)
•Not Sharia-certified
•Minor interest income

Current quantitative Sharia screen

Based on Semiannual Shareholder Report figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions

Interest-bearing debt / assets

0.00%Within limit

Below 33.333% under FTSE Yasaar

0 / 38,933.114

Cash + interest-bearing securities / assets

0.57%Within limit

Below 33.333% under FTSE Yasaar

220.317 / 38,933.114

Receivables + cash / assets

0.10%Within limit

Below 50% under FTSE Yasaar

38.122 / 38,933.114

Non-compliant income / revenue

0.10%Within limit

No more than 5% under FTSE Yasaar

0.34 / 341.022

Methodology	Financial	Overall	What drives it
FTSE Yasaar v4.6, February 2026	Pass	Incomplete	Debt/assets is 0.00%, liquidity/assets is 0.54%, receivables-plus-cash/assets is 0.10% and disclosed incidental non-compliant income is 0.10%; issuer activity remains incomplete at fund level.
MSCI Islamic (total-assets series) October 2024 methodology	Pass	Incomplete	Fund-level debt, liquidity and receivables-plus-cash are below examined MSCI asset limits, but a universal underlying prohibited-revenue numerator is unavailable.
Malaysia SAC financial ratios single 5% activity benchmark adopted November 2025	Pass	Incomplete	Fund-level financial ratios are below the examined Malaysia limits; the pass-through portfolio remains qualitatively incomplete.
Market-cap denominator methods MSCI M-Series, S&P and Dow Jones methods differ	Not calculated	Incomplete	A licensed historical market-cap series and fund-level prohibited-income convention are not stored.

FTSE Yasaar

v4.6, February 2026

Financial: Pass
Overall: Incomplete

Debt/assets is 0.00%, liquidity/assets is 0.54%, receivables-plus-cash/assets is 0.10% and disclosed incidental non-compliant income is 0.10%; issuer activity remains incomplete at fund level.

MSCI Islamic (total-assets series)

October 2024 methodology

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.

Malaysia SAC financial ratios

single 5% activity benchmark adopted November 2025

Financial: Pass
Overall: Incomplete

Fund-level financial ratios are below the examined Malaysia limits; the pass-through portfolio remains qualitatively 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

XLV is a pass-through healthcare-sector ETF holding pharmaceutical, medical-device, services and health-insurance companies. Healthcare activity is generally permissible, but the fund does not provide a school-neutral prohibited-revenue allocation for every 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 XLV's unaudited March 31, 2026 semiannual statements.
The fund reports USD 38,933.114086 million of total assets, USD 212.050804 million of affiliated investments, USD 8.266285 million of net cash at broker and USD 29.855450 million of dividends and securities-lending receivables.
Six-month investment income totals USD 341.021571 million. Disclosed interest and securities-lending income of USD 0.340187 million is used as the incidental non-compliant-income numerator; underlying issuer revenue is not allocated by the fund.
ETF look-through ratios are not an official FTSE, MSCI or Malaysia classification.

State Street Global Advisors: State Street Health Care Select Sector SPDR ETF semiannual report for March 31, 2026 State Street Global Advisors: State Street Health Care Select Sector SPDR ETF product page FTSE Russell: FTSE Yasaar Global Equity Shariah Index Series Ground Rules MSCI: MSCI Islamic Index Series Methodology Securities Commission Malaysia: Shariah-Compliant Securities Screening Methodology

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.

🧾

Own XLV? Purify your portfolio.

Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.

Order Your Report — $49 →

Track XLV and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →