What is Schwab U.S. Dividend Equity ETF's Shariah compliance score?

Schwab U.S. Dividend Equity ETF's (SCHD) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Schwab U.S. Dividend Equity ETF pass AAOIFI screening?

Schwab U.S. Dividend Equity ETF (SCHD) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (SCHD: 0.0%), (3) interest-bearing deposits below 30% (SCHD: 0.0%), and (4) prohibited income below 5% (SCHD: 14.2%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Schwab U.S. Dividend Equity ETF stock?

Schwab U.S. Dividend Equity ETF (SCHD) has a non-permissible income ratio of 14.18%. Muslim investors should purify this percentage of any dividends received and capital gains realized from SCHD shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Schwab U.S. Dividend Equity ETF for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Schwab U.S. Dividend Equity ETF (SCHD) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about SCHD's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is Schwab U.S. Dividend Equity ETF (SCHD) halal? Not Halal. Based on AAOIFI screening, Schwab U.S. Dividend Equity ETF has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

SCHD: Is Schwab U.S. Dividend Equity ETF Halal?

Not Halal

Schwab U.S. Dividend Equity ETF

AMEXETFUS

$31.93

-0.16%

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 17, 2026

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Basket-weighted haram holdings exceed 5% (29.2%)

Basket Composition

100% of basket screened

ETFs are baskets of many stocks. AAOIFI-aligned rule: basket is halal when haram weight is under 5%. The purification share is the weighted prohibited-income contribution of the underlying holdings.

64%

29%

Halal64%

Doubtful7%

Haram29%

Unknown0%

Top Holdings

LMTLockheed Martin Corphalal4.82%COPConocoPhillipshalal4.32%VZVerizon Communications Incharam4.31%CVXChevron Corphalal4.31%BMYBristol-Myers Squibb Coharam4.28%MRKMerck & Co Inchalal4.24%MOAltria Group Incharam4.14%TXNTexas Instruments Inchalal4.06%KOCoca-Cola Co/Thehalal4.03%PEPPepsiCo Inchalal4.01%

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 17, 2026Fiscal: N/ASource: FMP-LOOKTHROUGH

Financial Overview

Market Cap

93.0B

Price

$31.93

Sector

ETF

Industry

Exchange Traded Fund

Halal Alternatives in ETF

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

IAUA+

iShares Gold Trust

$90.24

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XLKA

State Street Technology Select Sector SPDR ETF

$185.80

-0.56%

SMHA

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$623.97

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GBTCA

Grayscale Bitcoin Trust

+0.04%

IBITA

iShares Bitcoin Trust ETF

More ETF Stocks

SPY

State Street SPDR S&P 500 ETF Trust

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VOO

Vanguard S&P 500 ETF

VTI

Vanguard Total Stock Market ETF

DIA

State Street SPDR Dow Jones Industrial Average ETF Trust

Free · No credit card required

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Frequently Asked Questions

Is Schwab U.S. Dividend Equity ETF (SCHD) halal to invest in?

Schwab U.S. Dividend Equity ETF (SCHD) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Schwab U.S. Dividend Equity ETF get a F compliance rating?

Schwab U.S. Dividend Equity ETF's compliance grade is determined by AAOIFI Standard 21 screening, a two-step process: (1) qualitative screen for prohibited business activities and (2) quantitative check of debt, interest deposits, and prohibited income ratios. Scroll up to see the detailed ratio breakdown.

What could change Schwab U.S. Dividend Equity ETF's Shariah verdict?

Schwab U.S. Dividend Equity ETF's verdict is recalculated whenever the fund rebalances or holdings change materially. If the haram-weight of underlying holdings crosses 5% (the AAOIFI threshold for fund look-through), the verdict will flip to Not Halal. HalalScreener rescreens ETFs at each rebalance cycle.

How often is Schwab U.S. Dividend Equity ETF re-screened for Shariah compliance?

Schwab U.S. Dividend Equity ETF (SCHD) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.