Is Schwab Mortgage-Backed Securities ETF halal to invest in?

As of September 2026, Schwab Mortgage-Backed Securities ETF SMBS 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 Mortgage-Backed Securities 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 Mortgage-Backed Securities ETF using these criteria to determine its compliance status.

How often is the Shariah compliance for Schwab Mortgage-Backed Securities ETF updated?

The Shariah compliance status of Schwab Mortgage-Backed Securities 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 Mortgage-Backed Securities 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 Mortgage-Backed Securities ETF?

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

Schwab Mortgage-Backed Securities ETF SMBS

SMBS Shariah Compliance

Screening Methodology: AAOIFI

As of September 2026, Schwab Mortgage-Backed Securities ETF is classified as not halal.

NOT HALAL

Is Schwab Mortgage-Backed Securities ETF Halal?

Shariah Compliance Analysis of SMBS ETF

US Fixed Income Investment Grade

No. As of September 2026, Schwab Mortgage-Backed Securities ETF (SMBS) is classified as NOT HALAL by Musaffa under its AAOIFI-based Shariah screening methodology. Schwab Mortgage-Backed Securities ETF does not pass Musaffa's business and financial screening criteria.

SMBS was created on 2024-11-19 by Schwab. The fund's investment portfolio concentrates primarily on investment grade fixed income. The ETF currently has 5843.36m in AUM and 3935 holdings. SMBS tracks a market value-weighted index of investment grade US mortgage-backed securities.

Schwab Mortgage-Backed Securities ETF (SMBS) Chart

Key Statistics of Schwab Mortgage-Backed Securities ETF (SMBS)

Today's Open

AUM

Avg. Volume

Expense Ratio

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P/B Ratio

FAQ's for Schwab Mortgage-Backed Securities ETF (SMBS)

As of September 2026, Schwab Mortgage-Backed Securities ETF SMBS 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 Mortgage-Backed Securities ETF using these criteria to determine its compliance status.
The Shariah compliance status of Schwab Mortgage-Backed Securities 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 Mortgage-Backed Securities ETF on Musaffa’s ETF page, where screening results and key indicators are updated to help Muslim investors make informed decisions.