---
title: "Is Etsy Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/etsy-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: not_halal
verdict_label: Not Halal
entity_type: stock
ticker: ETSY
exchange: NYSE
last_reviewed: 2026-06-14
data_as_of: 2026-03-31
standards_disagree: false
authorities_with_position: 2
authority_agreement: unanimous
---
# Is Etsy Stock Halal?

**Authority consensus:** All 2 halal screening authorities with a published position rate Etsy, Inc. not halal.

**Verdict: Not Halal** (Not permissible)

Etsy, Inc. (ETSY) does not pass Shariah screening: interest-bearing debt / market cap is 45.3% against the < 30% limit (data as of 2026-03-31). Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

Etsy, Inc. oversees online retail platforms designed to link independent merchants with a global customer base. The screening question on this name turns on its revenue mix — review the latest 10-K segment disclosure to confirm.

Financial ratios drive the fail (data as of 2026-03-31): interest-bearing debt / market cap at 45.3% versus the < 30% limit.

Zoya's public page did not return a clear status when we checked (checked 2026-06-15). Musaffa lists it NOT HALAL. U.S. Shariah ETFs SPUS and HLAL publish holdings on their own schedules — absence from a top-holdings list is not the same as a failed screen; verify current ETF holdings if index validation matters to you.

Practical takeaway: do not treat this as a borderline hold — the fail is structural on our methodology. Use Shariah-screened ETFs (SPUS, HLAL) or individually screened peers in the same sector instead.

Investors should treat this page as one dated AAOIFI-based screen — not a personal fatwa — and verify the latest filing before trading.

## Business activity screen

Result: Pass

Etsy, Inc. oversees online retail platforms designed to link independent merchants with a global customer base. Its primary marketplace is dedicated to unique and handcrafted items, while its Depop division focuses on the resale of apparel. The company's revenue streams largely originate from diverse marketplace fees, such as those for product listings, transactions, and payment processing, as well as from advertising services and optional seller utilities like shipping labels. Furthermore, Etsy

Interest income only — verify other impermissible revenue lines in the 10-K

## Financial ratio screen (AAOIFI)

Data as of: 2026-03-31

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 45.3% | < 30% | Fail |
| Cash + interest-bearing securities / market cap | 21.6% | < 30% | Pass |
| Impermissible income / total revenue | 1.5% | < 5% | Pass |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## How it screens across Shariah standards

All three mainstream bases below reach the same conclusion for this company.

| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 45.3% | 21.6% | < 30% of market cap | Fail |
| Dow Jones Islamic / S&P Shariah threshold | 45.3% | 21.6% | < 33% of market cap | Fail |
| MSCI Islamic / FTSE Yasaar basis | 111.3% | 53.2% | < 33.33% of total assets | Fail |

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen.

## Scholars' and screeners' positions

- **Musaffa**: Public page classifies the stock NOT HALAL (checked 2026-06-15). ([source](https://musaffa.com/stock/ETSY/))
- **HalalWallet AAOIFI screen**: Rates Etsy, Inc. (ETSY) non-compliant: it fails on financial ratios — interest-bearing debt / market cap is 45.3% against a 30% limit on 2026-03-31 figures. ([source](/halal-stock-screening-methodology))

## Sources

- ETSY latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Etsy%2C%20Inc.&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- Etsy, Inc. SEC EDGAR filings (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Etsy%2C%20Inc.&type=10-K)
- Zoya — ETSY Shariah compliance (https://zoya.finance/stocks/etsy)
- Musaffa — ETSY (https://musaffa.com/stock/ETSY/)
- SPUS Schedule of Investments reference (2026-02-28) (https://www.sec.gov/Archives/edgar/data/1742912/000200032426001717/spus-soi_022826.htm)
- HLAL holdings reference (2026-06-05) (https://stockanalysis.com/etf/hlal/holdings/)

## Frequently asked questions

### Is Etsy, Inc. (ETSY) stock halal?

No. Etsy, Inc. fails Shariah screening — see the screen table and analysis on this page for the specific business-activity or ratio reasons.

### Does Etsy, Inc. pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 45.3% of market cap (limit < 30%); cash plus interest-bearing securities is 21.6% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is Etsy, Inc. held in halal ETFs like SPUS or HLAL?

Check the scholar/screener positions and sources on this page for current SPUS, HLAL, Zoya, and Musaffa statuses.

## Related verdicts

- [Is Palantir Technologies Stock Halal?](https://www.halalwallet.ca/is-it-halal/palantir-technologies-stock.md) — Not Halal
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- [Is Altria Stock Halal?](https://www.halalwallet.ca/is-it-halal/altria-group-stock.md) — Not Halal

---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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