Is Vanguard Information Technology ETF (VGT) Halal?
Vanguard Information Technology ETF (VGT) · VGT
VGT tracks the MSCI US IMI Information Technology 25/50 index without Shariah screening. Its sector focus means most of its weight sits in companies that individually pass screens — NVIDIA, Apple, and Microsoft alone are ~45% of the fund — but it still holds tech names that fail the AAOIFI debt or interest-income ratios, applies no business-activity screen, and earns interest on cash, so the fund itself is not Shariah-compliant. For screened tech-heavy exposure, HLAL is strongly technology-weighted, and screened S&P 500 funds like SPUS carry the same mega-cap tech at the top.
Screening basis: AAOIFI Shariah standards · Last reviewed 2026-07-20
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.
Do the halal screening authorities agree?
- HalalWallet (AAOIFI)· Not halal
HalalWallet (AAOIFI) rates Vanguard Information Technology ETF (VGT) not halal; no other recognized authority has a published position.
Stances are normalized from each authority's own dated public position. Disagreement usually reflects a methodology or standard difference (ratio timing, market-cap vs total-assets denominator), not an error. For the fund screens (Wahed/HLAL, SP Funds/SPUS), only a confirmed holding that passed the fund's screen counts as a pass — a non-holding is left blank because absence can reflect index scope.
Is Vanguard Information Technology ETF (VGT) Halal?
VGT tracks the MSCI US IMI Information Technology 25/50 index without Shariah screening. Its sector focus means most of its weight sits in companies that individually pass screens — NVIDIA, Apple, and Microsoft alone are ~45% of the fund — but it still holds tech names that fail the AAOIFI debt or interest-income ratios, applies no business-activity screen, and earns interest on cash, so the fund itself is not Shariah-compliant. For screened tech-heavy exposure, HLAL is strongly technology-weighted, and screened S&P 500 funds like SPUS carry the same mega-cap tech at the top.
How we read the evidence
HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.
VGT is the biggest technology sector ETF — roughly 320 U.S. tech stocks tracking the MSCI US IMI Information Technology 25/50 index for 0.09% a year, with NVIDIA (18.6%), Apple (15.9%), and Microsoft (10.2%) making up nearly half the fund. Muslim investors ask about it for an understandable reason: the top of the fund is dominated by companies that individually pass Shariah screens, so VGT feels closer to compliant than a bank-heavy total-market fund.
The feeling is directionally right and legally irrelevant. Shariah compliance for a fund is a property of the wrapper: every holding must pass the business-activity screen and the financial-ratio screens, and the fund's own cash management must avoid interest. VGT applies none of those filters. Its sector definition happens to exclude conventional banks — the same accident of design as QQQ's no-financials rule — but nothing screens out tech companies carrying interest-bearing debt above the AAOIFI threshold (roughly 30–33% of market cap) or earning excessive interest on their cash piles, and the fund itself earns interest on uninvested cash. Our QQQ verdict reached not-halal on identical reasoning, and consistency requires the same answer here.
The practical question is what a Muslim investor who wants tech exposure should do instead, and the answer is unusually good. Because screened indexes end up technology-heavy — removing banks and over-leveraged industrials concentrates weight in cash-rich tech — HLAL delivers a strong tech tilt with a Shariah board and purification built in, and SPUS's screened S&P 500 carries the same mega-cap tech leadership. Investors who specifically want the *pure* sector bet can hold the passing names directly: most mega-cap technology companies clear AAOIFI screens, verifiable per-stock with screeners like Zoya or Musaffa (our verdict pages cover the major names). The one thing to avoid is the shortcut of holding the unscreened fund because 'most of it passes' — ownership of the failing remainder is precisely what the screens exist to prevent.
Business Activity Screen
A passive sector ETF tracking the MSCI US Investable Market Information Technology 25/50 Index — about 320 U.S. technology stocks across all market caps (0.09% expense ratio), with no Shariah screening.
Sector rules keep banks and insurers out, which removes the most obvious violations — but the fund applies no financial-ratio screen, so leveraged tech companies and those with excessive interest income remain, and the fund earns interest on uninvested cash. An unscreened wrapper is non-compliant regardless of how clean its sector skews.
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
The ruling follows the fund, not the sector. A technology index fund with no Shariah screen still holds ratio-failing companies and earns interest, so it is not permissible to hold — the same conclusion as QQQ, which is also tech-heavy and unscreened.
Practical alternative
HLAL is heavily technology-weighted after screening, making it the closest halal expression of a U.S. tech tilt; screened S&P 500 funds (SPUS) also concentrate in the same mega-cap tech names at the top. Investors wanting individual exposure can hold the screened tech stocks directly — most mega-cap tech passes AAOIFI screens.
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Browse all etf & fund verdicts →
Related guides
Stay Updated
Get alerted when screening statuses change — new financials, new authority positions, new verdicts
No spam ever. Unsubscribe in one click.
The Final Step: Your Scholar Conversation
Major whether Vanguard Information Technology ETF (VGT) is halal decisions involve nuances that vary by scholarly opinion and personal circumstance — which is why HalalWallet is built as the research step, not the ruling. We do the homework on comparisons, structures, and oversight; a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor covers what no comparison site can — guidance specific to your situation. Bring your shortlist to that conversation so it starts at the decision, not the basics.
How to use this comparison: HalalWallet is an independent educational comparison platform — by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider — their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
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: 2026-07-01
- Wahed — what makes an ETF halal (standard index ETFs are not)
- AAOIFI Shariah Standard No. 21 (investment in shares)
- HalalWallet Methodology
- HalalWallet Editorial Policy
- Halal Stock Screening Methodology (AAOIFI)
- Why Halal Stock Screeners Disagree
- Vanguard — VGT fact sheet
- HLAL — Wahed FTSE USA Shariah ETF holdings
- HalalWallet Methodology
- Editorial Policy
- Markdown mirror (AI systems, CC BY 4.0)
- Halal verdict corpus (JSON)
How to cite this page
Preferred format (HTML):
AI / agent mirror (Markdown, CC BY 4.0):
Bulk feed record: verdict.vgt-etf in /api/llm-feed.json
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Editorial Team, HalalWallet
Independent halal finance research
Reviewed quarterly and updated for major content changes.