The Short Answer
Regular index funds like SPY are NOT entirely halal (they include haram companies). But Sharia index funds like SPUS are HALAL.
Regular Index Funds vs Sharia Index Funds
SPY (S&P 500 Index): Includes all 500 companies—banks, alcohol, weapons, gambling.
SPUS (S&P 500 Sharia Index): Same 500 companies but filtered to 300 halal ones.
Best Halal Index Funds
- ✅ SPUS — S&P 500 Sharia ETF
- ✅ AMANA — Amana Islamic ETF
- ✅ HNRG — Wahed High Growth
Performance: Do Halal Indexes Underperform?
No. SPUS has matched or beaten SPY returns over 10 years. Reason: halal companies are financially stable.