SPUS and HLAL are the two most popular Shariah-compliant ETFs in the United States. Both aim to give Muslim investors broad US equity exposure while maintaining full Shariah compliance — but they differ significantly in methodology, holdings, cost, and performance. We compared them using real data from the Halal Terminal API.
SPUS tracks a Shariah-filtered S&P 500 (broader, lower cost). HLAL tracks the FTSE USA Shariah Index (slightly different methodology, more concentrated). Both are fully compliant — your choice depends on cost sensitivity vs methodology preference.
Head-to-Head Comparison
| Metric | SPUS | HLAL |
|---|---|---|
| Full Name | SP Funds S&P 500 Sharia ETF | Wahed FTSE USA Shariah ETF |
| Index Tracked | S&P 500 Shariah Index | FTSE USA Shariah Index |
| Screening Standard | S&P Dow Jones Shariah | FTSE Shariah (Yasaar Ltd) |
| Expense Ratio | 0.49% | 0.50% |
| AUM | ~$1.1B | ~$380M |
| Holdings | ~235 | ~190 |
| Compliance Rate | 100% | 100% |
| Purification Rate | 1.2% | 1.4% |
| Dividend Yield | ~0.9% | ~0.7% |
| Inception Date | Dec 2019 | Jul 2019 |
| 1-Year Return | +28.4% | +26.8% |
| 3-Year Return | +42.1% | +38.7% |
| Top Holding | AAPL (~15%) | AAPL (~14%) |
Methodology Differences
SPUS: S&P Shariah Methodology
SPUS uses the S&P Dow Jones Shariah screening methodology, which uses market-cap-based denominators for financial ratios. Thresholds are:
- Debt / Market Cap < 33%
- Cash + Interest-bearing securities / Market Cap < 33%
- Accounts Receivable / Market Cap < 33%
- Impermissible revenue < 5%
HLAL: FTSE Shariah Methodology
HLAL uses the FTSE Shariah methodology (advised by Yasaar Ltd), which uses total-assets-based denominators with more generous limits:
- Debt / Total Assets < 50%
- Cash + Interest-bearing securities / Total Assets < 50%
- Accounts Receivable / Total Assets < 50%
- Impermissible revenue < 5%
Practical difference: FTSE's 50% threshold is more lenient than S&P's 33% market-cap threshold for most stocks. However, during market downturns when market caps fall, S&P's market-cap-based approach can cause stocks to fail screening that still pass FTSE's asset-based approach. SPUS may have slightly more turnover during volatile markets.
Holdings Overlap
We compared both ETFs using the Halal Terminal ETF comparison endpoint:
curl -X POST https://api.halalterminal.com/api/etf/compare \
-H "X-API-Key: YOUR_KEY" \
-H "Content-Type: application/json" \
-d '{"symbols": ["SPUS", "HLAL"]}'Key findings:
- ~85% overlap in holdings by weight — both hold the same mega-cap tech stocks
- Top 10 holdings are nearly identical: AAPL, MSFT, NVDA, AMZN, META, GOOGL, AVGO, TSLA, UNH, LLY
- SPUS has ~45 more holdings than HLAL, giving slightly broader diversification
- Sector weights are similar: both are heavily overweight Technology (~45%) and Healthcare (~15%)
Which Should You Choose?
| Choose SPUS If... | Choose HLAL If... |
|---|---|
| You want broader diversification (235 vs 190 holdings) | You prefer the FTSE Shariah methodology |
| You want slightly lower purification (1.2% vs 1.4%) | You want Wahed's brand and ecosystem |
| You prioritize higher AUM and liquidity ($1.1B vs $380M) | You like FTSE's asset-based thresholds (more stable in downturns) |
| You want closer S&P 500 tracking | You want a more concentrated, conviction-weighted portfolio |
Bottom line: Both are excellent choices. The differences are marginal. If forced to pick, SPUS has a slight edge due to larger AUM, broader holdings, and lower purification rate — but you can't go wrong with either.
Two ways to screen
Halal Terminal
Screen stocks and ETFs interactively with real-time data, multi-methodology verdicts, and transparent financial ratios.
Key Takeaways
- Both SPUS and HLAL are 100% Shariah-compliant — either is a valid choice
- SPUS is slightly larger, broader, and cheaper in purification costs
- HLAL uses a more conservative asset-based methodology that may be more stable in downturns
- ~85% holdings overlap — you're getting very similar exposure either way
- Consider holding both for methodology diversification
Important Disclaimer
Not financial advice. The information provided on this page is for educational and informational purposes only and should not be construed as financial advice, investment advice, trading advice, or any other type of advice. You should not make any financial decisions based solely on the information presented here.
Not a fatwa. Shariah compliance screening results are generated using automated data analysis based on publicly available financial data. These results do not constitute a religious ruling (fatwa) and should not be treated as one. Always consult a qualified Islamic scholar or Shariah advisor for guidance specific to your situation.
Do your own research. Past performance and current compliance status do not guarantee future results or continued compliance. Screening data may contain errors or become outdated. Always verify information independently and consult with a qualified financial advisor before making any investment decisions.