Why Use a Halal Fund Instead of Picking Stocks?
Halal ETFs and mutual funds offer three key advantages over individual stock picking:
- Automatic screening: Professional Sharia boards continuously monitor holdings — you don't need to screen every stock yourself
- Diversification: Instant exposure to hundreds of halal companies
- Simplicity: One-fund solution for your Islamic equity exposure
Top Halal ETFs (Exchange-Traded Funds)
1. SPUS — SP Funds S&P 500 Sharia Industry Exclusions ETF ⭐
Best for: US equity exposure, S&P 500 alternative
Expense Ratio: 0.49%
AUM: ~$1.4 billion
Sharia Board: Independent Sharia board certified
SPUS is the gold standard for Muslim investors wanting S&P 500 exposure. It tracks the S&P 500 Sharia Index, removing all financial companies, alcohol, tobacco, gambling, weapons, and adult entertainment companies. Holdings include Apple, Microsoft, NVIDIA, Tesla, and ~300 other permissible S&P 500 companies.
2. HLAL — Wahed FTSE USA Shariah ETF ⭐
Best for: Broader US equity exposure
Expense Ratio: 0.50%
AUM: ~$350 million
Sharia Board: Certified
HLAL tracks the FTSE USA Shariah Index. Similar to SPUS but covers a broader universe beyond just the S&P 500. Excellent for US market exposure with full Sharia certification.
3. UMMA — Wahed Dow Jones Islamic World ETF
Best for: International equity exposure
Expense Ratio: 0.50%
Sharia Board: Certified
UMMA provides global equity exposure excluding US stocks. Tracks the Dow Jones Islamic Market International Index. Essential for global portfolio diversification.
4. ISWD — iShares MSCI World Islamic UCITS ETF
Best for: European investors wanting global Sharia equities
Sharia Board: MSCI Islamic Screening
Exchange: LSE (London Stock Exchange)
Best choice for UK and European Muslim investors. Tracks the MSCI World Islamic Index with comprehensive global coverage.
5. SPRE — SP Funds Dow Jones Global Sukuk ETF
Best for: Fixed income / bond alternative
Expense Ratio: 0.55%
Sharia Board: Certified
SPRE holds global sukuk (Islamic bonds) — the halal alternative to conventional bond funds. Essential for conservative investors who need fixed-income exposure without riba. Provides regular income distributions from sukuk profit payments.
Top Halal Mutual Funds
6. Amana Growth Fund (AMAGX)
Best for: US investors wanting active management
Expense Ratio: 0.97%
Manager: Saturna Capital
Track record: Since 1994
The Amana Growth Fund is one of the oldest and most respected Islamic funds in the US. Actively managed by Saturna Capital, targeting growth-oriented halal companies. Long track record and respected Sharia board.
7. Amana Income Fund (AMANX)
Best for: Income-focused halal investors
Expense Ratio: 1.07%
Manager: Saturna Capital
Track record: Since 1986 (oldest Islamic fund in US)
AMANX focuses on income-generating halal equities. The oldest Islamic investment fund in the United States. Higher fees than ETFs but trusted management.
Robo-Advisors for Halal Investing
8. Wahed Invest
Best for: Hands-off halal investing
Fees: 0.49% annually
Minimum: $100
Wahed is the world's first fully halal robo-advisor. Available in 150+ countries. Portfolios include sukuk, gold, and Sharia-screened equities. Excellent for beginners who want a managed halal portfolio without any decisions.
How to Choose Between These Funds
For most investors: Start with SPUS + UMMA + gold (GLD/IAU) for a globally diversified halal equity portfolio.
For fixed income: Add SPRE as a bond alternative.
For hands-off: Use Wahed Invest instead of picking ETFs yourself.
Performance Comparison
Historically, Sharia-screened funds have kept pace with or outperformed conventional equivalents over 5-10 year periods. The exclusion of financial stocks (which underperformed after 2008) and heavy weight in tech (which outperformed dramatically) has benefited halal investors.
The Bottom Line
SPUS and HLAL are the two best options for most US Muslim investors. Pair with UMMA or ISWD for international exposure and SPRE for fixed income. Use our halal checker to evaluate individual fund holdings anytime.