Question about Wahed ETF holdings

Assalamu Alaikum,

I saw in another thread @Mufti_Faraz_Adam mentioned he is a Shariah advisor for Wahed, so I thought I could ask this question here.

Looking at the list of the holdings in Wahed’s ETF (, there are several companies that are actually considered non-Shariah compliant according to Zoya and Islamicly, in some cases with their debt-to-market cap ratio being >100%. These companies include CVS Health, T-Mobile, Delta Air Lines, HP, etc. I have checked the balance sheets myself and they do seem loaded in debt, so do you know why they pass Wahed’s criteria?

JazakAllah khair

Walaikumus salaam, @Zaytoon31! Creator of Zoya here.

It’s more than likely that the differences you are seeing have to do with the screening criteria that was used to determine shariah compliance. Wahed’s ETF is based on the FTSE USA Shariah Index which uses total assets as the denominator for its debt ratios. Zoya, on the other hand, allows you to screen stocks using the AAOIFI screening methodology which uses market cap as the denominator instead.

There’s no right or wrong answer here. Mostly just boils down to a difference of opinion among scholars. Do your research and stick with one that fits your investing style and aligns with your values.

Feel free to DM me if you have any other questions about Zoya! :slight_smile:

Assalaamu alaykum,

Yes, brother Saad’s response is accurate.

Feel free to contact us through Wahed Invest. The entire Shariah frequently review the questions asked.