Quick Answer
Vanguard as a company is neither halal nor haram — it's a fund provider. The question is whether specific Vanguard funds are halal. Most of Vanguard's flagship funds (Total Stock Market, S&P 500, Total Bond Market) are NOT halal because they include banks, financial companies, entertainment stocks, and bonds (interest-bearing).
Vanguard Funds and Halal Investing
Here's the challenge: Vanguard's most popular funds are designed to track broad market indices that include many non-halal companies. The Vanguard S&P 500 ETF (VOO) includes JPMorgan Chase, Bank of America, Berkshire Hathaway, Netflix, Disney, and many other non-compliant companies.
Is There a Halal Vanguard Option?
Vanguard does not offer a Sharia-compliant fund. Unlike BlackRock (which has some ESG products) or iShares (which has some emerging market Islamic ETFs), Vanguard has not entered the Islamic finance space.
Alternatives to Vanguard for Halal Investors
Muslim investors looking for Vanguard-like simplicity and low costs should consider: SPUS (SP Funds S&P 500 Sharia ETF) — gives S&P 500 exposure with Islamic screening. HLAL (Wahed FTSE USA Shariah ETF) — broad US market, Sharia-screened. AMANX (Amana Growth Fund) — mutual fund alternative.
Can You Use Vanguard as a Brokerage?
Yes. You can open a brokerage account at Vanguard and use it to buy halal ETFs (SPUS, HLAL) and individual halal stocks. The brokerage platform itself is neutral — it's the investments you choose that determine halal status.
Bottom Line
Vanguard's index funds are not halal for Muslim investors. But you can still use Vanguard as a brokerage platform to hold halal ETFs and individual stocks. The company, not the investment vehicle, is neutral.