Best Halal ETFs Compared: SPUS vs HLAL vs UMMA

For Muslim investors who want diversified, Shariah-compliant equity exposure without picking individual stocks, halal ETFs are the most practical option. In this article, we compare the three most popular US-listed halal ETFs: SPUS, HLAL, and UMMA.

SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS)

SPUS tracks the S&P 500 Shariah Industry Exclusions Index, which takes the familiar S&P 500 and removes companies that do not meet Shariah screening criteria. This makes it the closest halal equivalent to a standard S&P 500 index fund.

• Index: S&P 500 Shariah Industry Exclusions
• Expense ratio: 0.49%
• Holdings: Approximately 230-250 stocks
• Focus: US large-cap equities
• Shariah advisor: Ratings Intelligence Partners

SPUS is the largest halal ETF by assets under management and is generally considered the benchmark for halal US equity investing. Its heavy weighting toward technology and healthcare (since financials are excluded) gives it a growth tilt compared to the regular S&P 500.

Wahed FTSE USA Shariah ETF (HLAL)

HLAL tracks the FTSE USA Shariah Index, which applies FTSE Russell's Shariah screening methodology to US equities. It is managed by Wahed Invest, one of the most recognized names in Islamic fintech.

• Index: FTSE USA Shariah Index
• Expense ratio: 0.50%
• Holdings: Approximately 200-250 stocks
• Focus: US equities across market caps
• Shariah advisor: Wahed Shariah Board

HLAL uses the FTSE screening methodology, which differs slightly from the S&P methodology used by SPUS. The FTSE approach uses total assets as the denominator for financial ratios rather than market cap. This can lead to a different set of included companies.

Wahed Dow Jones Islamic World ETF (UMMA)

UMMA provides global exposure by tracking the Dow Jones Islamic Market International Titans 100 Index. Unlike SPUS and HLAL which focus on US equities, UMMA invests in large international companies.

• Index: Dow Jones Islamic Market International Titans 100
• Expense ratio: 0.65%
• Holdings: Approximately 100 stocks
• Focus: International large-cap equities
• Shariah advisor: Wahed Shariah Board

UMMA is a good option for investors seeking geographic diversification beyond the US market. It includes companies from Europe, Asia, and other regions, all screened for Shariah compliance.

Key Differences at a Glance

Which One Should You Choose?

The choice depends on your investment goals. If you want the closest halal equivalent to a standard S&P 500 fund, SPUS is the natural pick. If you prefer the FTSE methodology, HLAL is a solid alternative. For global diversification, UMMA complements a US-focused holding. Many Muslim investors hold a combination of SPUS or HLAL for US exposure alongside UMMA for international diversification.

Check ETF Holdings for Halal Compliance

Interested in checking other ETFs? Use the Halalytic screener to check the compliance status of any stock held within an ETF. You can screen individual holdings and track their compliance trends over time to make informed investment decisions.