The S&P 500 index or its full name the Standard & Poor’s 500 index is an index that brings together the 500 stocks of U.S. companies that have the largest market capitalization and meet several other criteria set by S&P. The S&P 500 Index, the Dow Jones Industrial Average (Dow 30) and the Russell 2000 Index are the indexes often used as benchmarks for the US stock market.
Let's take a look at five of the 10 most profitable shariah -compliant stocks listed in the S&P 500 in 2020.
1. Tesla Inc (TSLA)
Tesla Inc. is a company that makes electric vehicles popular in the world. Tesla is involved in the design, development and manufacture of electric vehicles around the world. The company is also involved in the installation of solar systems and solar -powered power generators. Apart from that, Tesla is also involved in the automotive, power generation and variable energy storage segments.
Tesla shares are seen to be gaining continued buying interest to this day. This has resulted in Elon Musk now being the richest man in the world, surpassing Jeff Bezos.
The shares of Tesla Inc company are shariah -compliant shares according to the screening made by Islamicly. The company meets all the criteria set by Islamicly as a shariah -compliant stock.
2. Etsy Inc (ETSY)
Etsy is a company that connects people online and offline to do business. The company offers a network of services to small entrepreneurs to grow and manage their businesses in a more orderly manner. This Etsy platform has connected 1.7 million Etsy sellers with 28.6 million Etsy buyers.
This Etsy stock started getting the attention of investors in early April 2020 to this day. This stock price movement is seen to be making a healthy uptrend phase and it is expected that with the new norms we are adopting, Etsy will continue to receive a positive impact from the current situation.
3. NVIDIA Corporation (NVDA)
Nvidia Corporation (NVDA) is a company in the computer hardware industry. The company focuses on the production of personal computer graphics, graphics processing units (GPU) and artificial intelligence (AI). The company operates through two different segments namely the GPU segment and the Tegra Processor segment.
Islamicly has also granted shariah -compliant status to the company’s NVDIA shares after all the prescribed shariah -compliant screenings.
4. ABIOMED Inc (ABMD)
Abiomed Inc. is a company that supplies support devices and temporary breathing aids, primarily to heart patients. The company is involved in several segments such as development and research (R&D) as well as sales of health equipment related to heart disease. The devices produced by this company are used by heart surgeons and cardiologists around the world.
Just like the other stocks above, Islamicly has found that ABIOMED Inc meets the prescribed shariah-compliant stock criteria.
5. Cadence Design System Inc (CDNS)
Cadence Design Systems Inc. provides facilities that allow their customers to design their own electronic products. Among the company's products are Functional Verification, Digital Integrated Circuits (IC) Design Verification and many more. Each of the products from Cadence Design System has its own functions and can follow the design desired by their customers.
Cadence Design Systems Inc shares also meet the shariah -compliant criteria set by Islamicly and as such, Cadence shares are one of the shariah -compliant stocks listed on the S&P 500.
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