Comment by roflulz
12 hours ago
The S&P Shariah index fund is required to exclude SpaceX and already exists https://www.spglobal.com/spdji/en/indices/equity/sp-500-shar...
12 hours ago
The S&P Shariah index fund is required to exclude SpaceX and already exists https://www.spglobal.com/spdji/en/indices/equity/sp-500-shar...
Seems bizarre to have a Shariah-compliant index fund comprising companies that are all levered with huge amounts of debt financing.
Why? Was space exploration incompatible with Sharia? Is it the pornography bit of xAI?
Advertising, presumably. But that also excludes, like, all of big tech?
One presumes it's because a huge amount of its revenue comes from defense contracts, which are haram. Here is n excerpt from the fund's exclusion criteria:
> S&P 500 Shariah Industry Exclusions. The index universe consists of all the constituents in the S&P 500 Shariah, excluding companies classified as part of GICS sub-industries 20101010 (Aerospace & Defense), 40203040 (Financial Exchanges & Data), 40201060 (Transaction & Payment Processing Services).
That is wild. Saudi Arabia which is governed by sharia law spends about 7% of its GDP per year on its military. I had no idea that ownership of defense contractors is considered haraam.
2 replies →
thanks for the explanation and digging up the exclusion criteria.
Ketamine (and pump and dumps) is haram
Looking at their exclusion criteria, which one do you believe it falls under?
Why would a Shariah index fund have to exclude SpaceX?