FXI
Quality Rating
The iShares China Large-Cap ETF (FXI) tracks the FTSE China 50 Index, providing exposure to large-cap Chinese companies. Due to underlying holdings in non-compliant sectors such as conventional banking and alcohol production, FXI fails Shariah business activity screening. Financial ratios are inapplicable to ETFs, but constituent analysis reveals high debt and impure income. No inclusion in major Shariah indices confirms non-compliance. Investors may consider purification for dividends, but core exposure remains problematic.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Not included in S&P Dow Jones Shariah, MSCI Islamic, FTSE Shariah, or DJIM indices
Key Compliance Considerations
- Business activity: Significant exposure to riba-based financial services (approx. 40% of holdings)
- Non-permissible sectors: Alcohol production (e.g., Kweichow Moutai, ~5%) and gaming elements
- Index exclusion: Not included in any major Shariah-compliant indices due to underlying non-compliance
- ETF structure: Aggregate holdings fail qualitative and quantitative screens
Debt Ratio
0.0%
Liquidity Ratio
0.0%
Interest Income Ratio
0.0%
Purification
25.00%