Seems bizarre to have a Shariah-compliant index fund comprising companies that are all levered with huge amounts of debt financing.
replyWhy? Was space exploration incompatible with Sharia? Is it the pornography bit of xAI?
replyDogs went into space. Dogs are haram. Therefore, space is haram.
replyProbably not this reasoning.
Advertising, presumably. But that also excludes, like, all of big tech?
replyOne presumes it's because a huge amount of its revenue comes from defense contracts, which are haram. Here is n excerpt from the fund's exclusion criteria:
reply> S&P 500 Shariah Industry Exclusions. The index universe consists of all the constituents in the S&P 500 Shariah, excluding companies classified as part of GICS sub-industries 20101010 (Aerospace & Defense), 40203040 (Financial Exchanges & Data), 40201060 (Transaction & Payment Processing Services).
That is wild. Saudi Arabia which is governed by sharia law spends about 7% of its GDP per year on its military. I had no idea that ownership of defense contractors is considered haraam.
replyopinions vary, but this was the opinion adopted when formulating this index
replyit probably makes it easier to ship in europe where some private banks and pensions (eg denmark gov) ban defence investment
> the opinion adopted when formulating this index
> S&P Shariah indices ... are overseen by an independent Shariah Supervisory Board consisting of a panel of internationally renowned Islamic scholars. This board is facilitated by Ratings Intelligence Partners, a London and Kuwait-based Islamic finance advisory firm.
thanks for the explanation and digging up the exclusion criteria.
replydeleted
replyKetamine (and pump and dumps) is haram
replyLooking at their exclusion criteria, which one do you believe it falls under?
replyWhy would a Shariah index fund have to exclude SpaceX?
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