Is Vanguard High Dividend Yield Index ETF halal to invest in?

As of September 2026, Vanguard High Dividend Yield Index ETF VYM 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 Vanguard High Dividend Yield Index 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 Vanguard High Dividend Yield Index ETF using these criteria to determine its compliance status.

How often is the Shariah compliance for Vanguard High Dividend Yield Index ETF updated?

The Shariah compliance status of Vanguard High Dividend Yield Index 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 Vanguard High Dividend Yield Index 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 Vanguard High Dividend Yield Index ETF?

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

Vanguard High Dividend Yield Index ETF VYM

VYM Shariah Compliance

Screening Methodology: AAOIFI

As of September 2026, Vanguard High Dividend Yield Index ETF is classified as not halal.

NOT HALAL

Is Vanguard High Dividend Yield Index ETF Halal?

Shariah Compliance Analysis of VYM ETF

US Equity High Dividend Yield

No. As of September 2026, Vanguard High Dividend Yield Index ETF (VYM) is classified as NOT HALAL by Musaffa under its AAOIFI-based Shariah screening methodology. Vanguard High Dividend Yield Index ETF does not pass Musaffa's business and financial screening criteria.

VYM was created on 2006-11-10 by Vanguard. The fund's investment portfolio concentrates primarily on high dividend yield equity. The ETF currently has 69183.06m in AUM and 569 holdings. VYM tracks the FTSE High Dividend Yield Index. The index selects high-dividend-paying US companies, excluding REITS, and weights them by market cap.

Vanguard High Dividend Yield Index ETF (VYM) Chart

Key Statistics of Vanguard High Dividend Yield Index ETF (VYM)

Today's Open

AUM

Avg. Volume

Expense Ratio

P/E Ratio

P/B Ratio

Sector Exposure

Financials
20.69%
Consumer Staples
13.09%
Health Care
12.41%
Industrials
12.29%
Energy
10.93%
Information Technology
10.84%
Consumer Discretionary
7.24%
Utilities
6.22%
Communication Services
3.10%
Materials
2.74%
Other
0.44%
Real Estate
0.01%

FAQ's for Vanguard High Dividend Yield Index ETF (VYM)

As of September 2026, Vanguard High Dividend Yield Index ETF VYM 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 Vanguard High Dividend Yield Index ETF using these criteria to determine its compliance status.
The Shariah compliance status of Vanguard High Dividend Yield Index 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 Vanguard High Dividend Yield Index ETF on Musaffa’s ETF page, where screening results and key indicators are updated to help Muslim investors make informed decisions.