Is Technology Select Sector SPDR Fund (XLK) Halal?
ETF tracking US technology sector stocks. Use the free Halalytic screener to check if XLK stock passes AAOIFI Shariah compliance screening.
Technology Select Sector SPDR Fund (XLK) is flagged Needs Review under the AAOIFI 30/30/5 standard.
This is an ETF managed by State Street Investment Management. AAOIFI 30/30/5 ratios apply to individual stocks, not ETFs. Category: Technology.
AAOIFI 30/30/5 screen · as of September 1, 2026 · automated screening, not a fatwa — confirm borderline cases with a qualified scholar.
State Street Technology Select Sector SPDR ETF (XLK)
Sector: Technology · Industry: ETF (State Street Investment Management)
This is an ETF managed by State Street Investment Management. AAOIFI 30/30/5 ratios apply to individual stocks, not ETFs. Category: Technology.
Failing reasons:
- Not a recognized Shariah-compliant ETF. Category: Technology. Use the ETF Halal Audit tool to screen individual holdings for compliance.
Data refreshed weekly · AAOIFI 30/30/5 Standard · This is a conventional ETF. Use the ETF Halal Audit tool to check what percentage of holdings are Shariah-compliant. Not all holdings may be halal.
How We Screen Technology Select Sector SPDR Fund
Every stock is evaluated against four AAOIFI criteria. XLK must pass all four tests to be considered Shariah compliant.
1. Business Activity Screen
We check if Technology Select Sector SPDR Fund operates in any haram sector such as alcohol, gambling, tobacco, conventional banking, pork products, or weapons manufacturing. Companies in these industries are automatically rejected.
2. Debt Ratio (< 30%)
Interest-bearing debt divided by XLK's market capitalization must be below 30%. This ensures the company is not excessively reliant on interest-based financing.
3. Cash Ratio (< 30%)
Cash and interest-bearing securities divided by market capitalization must stay below 30%. This screens out companies that earn significant returns from interest-bearing deposits.
4. Income Ratio (< 5%)
Non-permissible income (such as interest income) divided by total revenue must be below 5%. Even compliant companies may have a small amount of non-permissible income that requires purification.
What is AAOIFI Screening?
The AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) is the global standard-setting body for Islamic finance. Their screening methodology, commonly known as the 30/30/5 rule, is the most widely used standard for determining whether a publicly traded stock is permissible (halal) for Muslim investors.
The standard evaluates two dimensions: the nature of the company's business (it must not primarily operate in prohibited sectors), and three financial ratios that measure the company's exposure to interest-bearing debt, interest-bearing cash, and non-permissible income.
Halalytic automates this screening using real-time financial data. Automated screening provides a strong initial assessment. For borderline cases or guidance specific to your situation, we recommend consulting a qualified Shariah scholar. For a full walkthrough of each screen and what every verdict means, read the halal stock screening methodology.
Frequently Asked Questions
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Good to know: Compliance status can change as new company data becomes available. For important decisions, we recommend checking the current data and confirming the result with a qualified Shariah adviser.
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