I came across this article for debt free stocks:
However, checking on Zoya, all 5 of them had ‘Interest-bearing securities’
Is this because the data is now old?
How are you guys keeping up to date with the debt status’s of these companies?
The Zoya app only alerts you according to their 33% criteria, however I’m looking for 0% debt companies
Would be interested to hear how you guys are managing this
Salaam! Zoya uses the AAOIFI screening methodology to determine shariah compliance which you can read about in more detail in our FAQs here. IFG, on the other hand, uses a slightly different variation which would explain the differences that you observed. Both methodologies are scholarly backed so I would recommend doing your own research and sticking to one that aligns with your values.
I have noticed differences in Zoya and Wahed (HLAL) also (both are AAOIFI compliant). Contacted Wahed and they said will check on it. Contacted Zoya but did not hear back. Below is question I had asked both:
"I see that you (Zoya) consider TMUS and STLD to be non shariah compliant because of interest bearing debt. But Wahed ETF “HLAL” includes these 2 stocks and they also claim to be AAOIFI compliant.
Are your standards more strict or there is something I am not aware of?"
Aside from the different methods/standards
Can anyone suggest any debt-free stocks to invest in?
JazakhAllah khair for your reply brother
Can you add a feature in Zoya where we can search/filter stocks by their debts and interest bearing securities?
And maybe have the option for selecting different standards right up to being able to search for stocks that are completely debt/securities free?
Apologies for the delay in responding! HLAL is an ETF that tracks the FTSE USA Shariah Index which uses a different screening methodology than Zoya. You can compare the two side-by-side using the links below:
FTSE Shariah Index: https://www.ftserussell.com/products/indices/global-shariah
Thanks for the feedback! We do plan to support additional shariah standards soon.