DUOG
Quality Rating
The Leverage Shares 2x Long DUOL Daily ETF (DUOG) is a leveraged exchange-traded fund that seeks to provide 2x the daily performance of Duolingo (DUOL) stock using derivatives such as swaps and options. This structure introduces significant Shariah compliance challenges due to the prohibition on gharar (excessive uncertainty) and maysir (gambling-like speculation) in Islamic finance. Financial ratios cannot be traditionally calculated for ETFs, resulting in insufficient data, but the core business activity of leveraged derivative exposure renders the product non-compliant across major Shariah standards. No inclusion in Shariah indices confirms the non-compliant status. Investors seeking exposure to education technology should consider unleveraged, Shariah-screened alternatives.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Not included in any major Shariah-compliant indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Use of derivatives (swaps and options) introducing gharar and maysir
- Speculative leveraged structure resembling gambling
- Insufficient traditional financial data for ratio screening due to ETF nature
- Underlying exposure to non-Shariah-screened single stock (DUOL)
Debt Ratio
0.0%
Liquidity Ratio
0.0%
Interest Income Ratio
0.0%
Purification
0.00%