Is Invesco QQQ (Nasdaq-100 ETF) Halal?
Invesco QQQ (Nasdaq-100 ETF) · QQQ · Nasdaq
QQQ tracks the Nasdaq-100 without Shariah screening. It is tech-heavy — and many of its largest holdings (Apple, Microsoft, Nvidia) pass screening — but it still includes companies that fail the business-activity or interest-based ratio screens and it earns interest on cash, so the fund itself is not Shariah-compliant. For screened, growth-tilted U.S. exposure use HLAL (which is heavily technology-weighted) or a screened S&P 500 fund like SPUS.
Screening basis: AAOIFI Shariah standards · Last reviewed 2026-06-15
Is Invesco QQQ (Nasdaq-100 ETF) Halal?
QQQ tracks the Nasdaq-100 without Shariah screening. It is tech-heavy — and many of its largest holdings (Apple, Microsoft, Nvidia) pass screening — but it still includes companies that fail the business-activity or interest-based ratio screens and it earns interest on cash, so the fund itself is not Shariah-compliant. For screened, growth-tilted U.S. exposure use HLAL (which is heavily technology-weighted) or a screened S&P 500 fund like SPUS.
Our Analysis
QQQ tracks the Nasdaq-100, the hundred largest non-financial companies listed on the Nasdaq. Because the index rules exclude financial-sector companies, QQQ avoids the conventional banks that most obviously disqualify the S&P 500 — which is why some investors assume it must be halal. It is not, and the reasons are more subtle than with VOO or SPY.
First, excluding the financial sector is not the same as Shariah screening. The Nasdaq-100 still includes companies whose interest-bearing debt or interest income exceeds the AAOIFI thresholds, and some with incidental impermissible revenue lines. Second, the fund itself earns interest on uninvested cash. Third, there is simply no Shariah supervisory board or purification mechanism attached to a conventional index fund. So even with a permissible technology tilt and many compliant top holdings — Apple, Microsoft, Nvidia all pass screening individually — the unscreened wrapper as a whole is not compliant.
For investors who hold QQQ specifically because they want a growth- and technology-heavy portfolio, the good news is that the closest halal substitute happens to share that profile: HLAL (Wahed FTSE USA Shariah ETF) is roughly 40%+ technology-weighted and fully Shariah-screened, with a Shariah board and a published purification ratio. SPUS is the screened S&P 500 option if you want broader large-cap coverage. Either gives you the tech exposure you were after without the unscreened holdings and interest income.
Business Activity Screen
A passive ETF tracking the Nasdaq-100 — the 100 largest non-financial companies on the Nasdaq — with no Shariah screening applied.
QQQ excludes financial-sector companies by index design, which removes the conventional banks, but it still holds names that fail the AAOIFI financial-ratio screens (excessive interest-bearing debt or interest income) and others with impermissible revenue lines, and it earns interest on cash. The unscreened wrapper is therefore not compliant despite a permissible tech tilt.
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Mainstream AAOIFI-aligned view
An unscreened Nasdaq-100 fund is not permissible to hold: even with financials excluded by index rules, it contains companies that breach the debt/interest ratio limits or have impermissible revenue, and the fund earns interest.
Source →Practical alternative
HLAL (Wahed FTSE USA Shariah ETF) is heavily technology-weighted and Shariah-screened, making it a closer halal substitute for a growth/tech tilt; SPUS is the screened S&P 500 option.
Source →
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether Invesco QQQ (Nasdaq-100 ETF) is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- Wahed — what makes an ETF halal (standard S&P 500 ETFs are not)
- AAOIFI Shariah Standard No. 21 (investment in shares)
- HLAL — Wahed FTSE USA Shariah ETF holdings
- HalalWallet Methodology
- HalalWallet Editorial Policy
- Halal Stock Screening Methodology (AAOIFI)
- Why Halal Stock Screeners Disagree
- Halal Stock Screeners Compared
- SPUS vs HLAL — Halal ETF Comparison
- HalalWallet Methodology
- Editorial Policy
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