TQQQ
Quality Rating
TQQQ, the ProShares UltraPro QQQ ETF, seeks to deliver three times the daily performance of the NASDAQ-100 Index using derivatives and swaps, which inherently involve riba (interest), gharar (uncertainty), and maysir (gambling-like speculation). This structure renders it non-compliant with core Shariah principles across major screening methodologies. Financial ratios cannot be traditionally applied due to the ETF's non-operational balance sheet, but qualitative business activity screening disqualifies it. No inclusion in major Shariah indices confirms its exclusion from compliant portfolios. Investors seeking exposure to technology sectors should consider Shariah-screened alternatives like the Wahed FTSE USA Shariah ETF (HLAL).
Purification Required
Minimal purification needed for dividend income
Index Inclusion
Not included in any major Shariah-compliant indices
Key Compliance Considerations
- Leveraged ETF structure involves riba through interest-bearing derivatives and swaps
- Daily reset mechanism introduces gharar (excessive uncertainty)
- Speculative 3x leverage resembles maysir (gambling)
- Underlying NASDAQ-100 includes non-compliant companies (e.g., financials with interest income)
- Insufficient traditional financial data for quantitative screening; qualitative assessment fails
Debt Ratio
0.0%
Liquidity Ratio
0.0%
Interest Income Ratio
0.0%
Purification
0.00%