السلام عليكم ورحمة الله وبركاته
1. We are unable to directly assess the nature of the individual companies listed within the Nasdaq100 or the S&P500. However, you can refer to certain guidelines, primarily drawn from the AAIOFI (The Accounting and Auditing Organization for Islamic Financial Institutions) Standards, to help determine the permissibility of investing in these companies.
2. Generally, investing in companies involved in Riba transactions and or other prohibited activities would be considered impermissible, even if their main activities are permissible.
3. Recognizing that most companies are in some way involved in Riba, exceptions are allowed provided certain criteria are met:
3.1 The company’s stated objectives in its memorandum of association should not include dealing in interest or prohibited goods.
3.2 “That the collective amount raised as loan on interest – whether long-term or short-term debt – does not exceed 30% of the market capitalization of the corporation, knowingly that raising loans on interest is prohibited whatsoever the amount is.”
3.3 “That the total amount of interest-taking deposits, whether short-, medium- or long-term, shall not exceed 30% of the market capitalization of total equity, knowingly that interest- taking deposits are prohibited whatsoever the collective amount is.”
3.4 Income derived from prohibited activities should not exceed 5% of the company’s total income, whether through direct prohibited activities or ownership of prohibited assets.
3.5 These percentages should be based on the latest verified financial data available.
4. In short, the requirements may be summarized as (a) Interest bearing debt should not exceed 30% of market cap (The value or worth of the company), (b) Current interest earning assets should not exceed 30% of market cap, and (c) Income generated from prohibited activities should not exceed 5%.
5. Additionally, the investor in such companies should dispose of the non-permissible income (NPI).
6. To conclude, if you determine that the companies you intend to invest in meet these specified standards, your investment would be considered permissible; otherwise not.
والله تعالى أعلم
And Allāh knows best