Is Schwab US Dividend Equity ETF halal to invest in?

As of August 2026, Schwab US Dividend Equity ETF SCHD is classified as not halal according to Musaffa’s Shariah screening methodology. This classification is based on an assessment of the company’s business activities and financial ratios against Islamic investment guidelines.

Is Schwab US Dividend Equity ETF a Shariah-compliant ETF?

An ETF is considered Shariah-compliant if its underlying assets consist primarily of companies that operate in permissible business activities and meet Islamic financial screening thresholds. Musaffa analyzes Schwab US Dividend Equity ETF using these criteria to determine its compliance status.

How often is the Shariah compliance for Schwab US Dividend Equity ETF updated?

The Shariah compliance status of Schwab US Dividend Equity ETF may be updated periodically when new portfolio disclosures, financial statements of underlying companies, or other relevant information becomes available.

Can a halal ETF like Schwab US Dividend Equity ETF become non-compliant?

Yes. An ETF that is currently Shariah-compliant may become non-compliant if its underlying holdings change or if the financial ratios of the companies within the fund exceed Shariah thresholds.

Where can I check the Shariah status of Schwab US Dividend Equity ETF?

You can check the latest Shariah compliance status of Schwab US Dividend Equity ETF on Musaffa's ETF page, where screening results and key indicators are updated to help Muslim investors make informed decisions.

Schwab US Dividend Equity ETF SCHD

SCHD Shariah Compliance

Screening Methodology: AAOIFI

As of August 2026, Schwab US Dividend Equity ETF is classified as not halal.

NOT HALAL

Schwab US Dividend Equity ETF. Analysis SCHD

US Equity High Dividend Yield

SCHD was created on 2011-10-20 by Schwab. The fund's investment portfolio concentrates primarily on high dividend yield equity. The ETF currently has 71745.83m in AUM and 101 holdings. SCHD tracks a market-cap-weighted index of 100 dividend-paying US equities.

Schwab US Dividend Equity ETF (SCHD) Chart

Key Statistics of Schwab US Dividend Equity ETF (SCHD)

Today's Open

AUM

Avg. Volume

Expense Ratio

P/E Ratio

P/B Ratio

Sector Exposure

Financials
18.03%
Health Care
15.84%
Consumer Staples
13.97%
Industrials
13.18%
Energy
12.09%
Consumer Discretionary
9.71%
Information Technology
8.69%
Communication Services
4.88%
Materials
3.09%
Other
0.48%
Utilities
0.04%

FAQ's for Schwab US Dividend Equity ETF (SCHD)

As of August 2026, Schwab US Dividend Equity ETF SCHD is classified as not halal according to Musaffa’s Shariah screening methodology. This classification is based on an assessment of the company’s business activities and financial ratios against Islamic investment guidelines.
An ETF is considered Shariah-compliant if its underlying assets consist primarily of companies that operate in permissible business activities and meet Islamic financial screening thresholds. Musaffa analyzes Schwab US Dividend Equity ETF using these criteria to determine its compliance status.
The Shariah compliance status of Schwab US Dividend Equity ETF may be updated periodically when new portfolio disclosures, financial statements of underlying companies, or other relevant information becomes available.
Yes. An ETF that is currently Shariah-compliant may become non-compliant if its underlying holdings change or if the financial ratios of the companies within the fund exceed Shariah thresholds.
You can check the latest Shariah compliance status of Schwab US Dividend Equity ETF on Musaffa’s ETF page, where screening results and key indicators are updated to help Muslim investors make informed decisions.