There is no US-listed ETF that screens for Shariah compliance and for dividend quality at the same time, so the honest answer to "which halal dividend ETF should I buy" is that you assemble income from pieces. The pieces that exist today are SPRE (a Shariah-screened global REIT ETF with a 2.50% 30-day SEC yield), SPSK (a sukuk ETF yielding 5.04%), the Amana Income Fund (AMANX, a dividend-focused halal mutual fund yielding 0.67%) and the Amana Participation Fund (AMAPX, a sukuk mutual fund yielding 3.04%). SCHD, the fund most people are trying to replace, fails the halal screen because of its bank holdings. This guide shows the figures side by side so you can see what you give up and what you keep.
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Why SCHD, VYM and the dividend aristocrat funds fail the screen
Conventional dividend ETFs are built around sectors that throw off cash, and in the United States the biggest cash-throwing sectors include banks, insurers, tobacco and alcohol. A Shariah screen under AAOIFI style rules removes companies whose core business is interest-based lending or insurance, then removes companies whose interest-bearing debt or interest-bearing cash exceeds roughly a third of market capitalization, then flags any firm earning more than 5% of revenue from impermissible activity. SCHD carries a large allocation to financials and consumer staples names such as tobacco and alcohol producers, so the fund fails as a whole. We cover the holding-by-holding reasoning in Is SCHD halal?.
The practical consequence is that "halal dividend investing" in the US means one of three things:
- Owning a Shariah-screened equity fund and accepting a low yield, because the screen removes most high payers.
- Owning a Shariah-screened REIT fund, where rental income rather than interest produces the distribution.
- Owning a sukuk fund, where the periodic payment is a share of asset returns rather than a bond coupon.
Each of these has a live US product with published numbers, so the rest of this article works through them.
The four income producers in the US halal fund universe
The table below pulls each figure from the issuer's own fund page on September 15, 2026. The 30-day SEC yield is the standardized measure regulators require, and it is the fairest way to compare funds that pay on different schedules.
| Fund | Ticker | What it holds | 30-day SEC yield | Expense ratio | Distribution schedule | Fund assets |
|---|---|---|---|---|---|---|
| SP Funds S&P Global REIT Sharia ETF | SPRE | Shariah-screened global REITs | 2.50% | 0.50% | Monthly | $195.1 million |
| SP Funds Dow Jones Global Sukuk ETF | SPSK | Investment-grade US dollar sukuk | 5.04% | 0.50% | Monthly | $456.1 million |
| Amana Income Fund (Investor) | AMANX | Dividend-paying Shariah-screened stocks | 0.67% | 0.99% | Semi-annual (May, December) | $923.6 million |
| Amana Participation Fund (Investor) | AMAPX | Sukuk and Islamic deposits | 3.04% | 0.82% | Monthly | $48.8 million |
Two notes on that table. First, the Amana funds also come in Institutional share classes (AMINX at 0.75% and AMIPX at 0.59%) with higher yields of 0.91% and 3.29%, but those classes carry a $100,000 minimum per Saturna's fund pages, so most households will use the Investor class. Second, SP Funds publishes its "fund assets" figure as net assets, while Saturna shows total assets per share class; both are what the issuer shows, and the precise definitions differ slightly.
For reference, the broad halal equity ETFs do not qualify as income products at all. SPUS, the largest halal ETF in the US with $3.37 billion in assets, shows a 30-day SEC yield of 0.39% and a 0.45% expense ratio. HLAL pays once a year, UMMA pays quarterly, and neither publishes a yield that would satisfy an income investor. If your goal is income, these are growth funds with a small cash return attached.
SPRE: the closest thing to a halal dividend ETF
SPRE tracks the S&P Global All Equity REIT Shariah Capped Index, and the Shariah methodology is what makes REITs workable here. A REIT passes the screen when its debt stays under the financial ratio ceiling and its rental income comes from tenants that are not primarily engaged in prohibited activities. Because REITs are legally required to distribute most of their taxable income, the fund throws off monthly cash.
What the SP Funds page showed on September 15, 2026:
- Net asset value of $18.63 per share and 30-day SEC yield of 2.50%.
- The most recent monthly distribution was $0.067 per share, and the eight monthly payments listed before it clustered between $0.064 and $0.067.
- Roughly a hundred holdings, with the largest single position (Prologis) at about 11% of the fund.
- A distribution yield of about 4.3% if you simply annualize the latest $0.067 payment against the $18.63 NAV. That is our arithmetic, not an issuer figure, and the SEC yield is lower because part of each REIT distribution is a return of capital or capital gain rather than income.
The fund is heavily weighted toward US REITs (about 73% of assets) with Japan, Australia and Singapore making up most of the remainder. That matters for two reasons. REIT prices are rate sensitive, so the capital value will not behave like a boring dividend stock portfolio. And REIT distributions are taxed as ordinary income rather than qualified dividends in a taxable account, which we explain in ETF tax efficiency for halal investors. You can read our standalone compliance review at SPRE verdict and the hub at halal REITs.
SPSK and AMAPX: sukuk income instead of bond coupons
Sukuk are certificates of ownership in an asset or project. The investor's return comes from the asset's rental or profit stream rather than from a loan. In the US there are two retail products that own them.
SPSK, the SP Funds Dow Jones Global Sukuk ETF, tracks the Dow Jones Sukuk Total Return (ex-Reinvestment) Index. On September 15, 2026 the page showed a 5.04% 30-day SEC yield, a 0.50% expense ratio, net assets of $456.1 million and a NAV of $17.36. Distributions over the past year ran at $0.052 per share each month, with an extra year-end payment in December 2025. The fund holds US dollar sukuk issued by sovereigns and corporates, mainly from the Gulf and Southeast Asia, and the fund page lists Indonesia, Saudi Arabia and Qatar entities among its largest positions. The sukuk index includes only investment-grade issues.
AMAPX, the Amana Participation Fund, is Saturna's actively managed sukuk mutual fund. It showed a 3.04% 30-day SEC yield for the Investor class, 0.82% expense ratio, and monthly distributions of roughly $0.024 to $0.026 per share against a NAV of $9.52. Why is the yield lower than SPSK? The fund held about 13% of its portfolio in cash and short-term instruments and runs a shorter effective maturity profile, which lowers yield but also lowers price swings when rates move. Minimum initial investment is $100 for the Investor class. The Shariah rulings behind each fund are in our SPSK verdict, and the asset class itself is explained at the sukuk hub.
A caution on both: sukuk funds are not deposit accounts. SPSK's price fell when US rates rose in 2022 just as bond funds did, because the certificates are priced off the same yield curve. Treat the 5.04% as a yield with duration risk attached.
AMANX: the halal dividend stock fund
The Amana Income Fund is the only US fund that explicitly targets dividend-paying companies within a Shariah screen. Saturna describes the objective as current income and preservation of capital, with capital appreciation secondary. The fund held about 42 positions as of August 31, 2026 and showed a NAV of $79.99 per share on October 6.
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What it pays, according to the Saturna distribution table:
- A qualified income distribution of $0.22 per share in May 2026 and $0.15 per share in December 2025.
- Semi-annual payments, not monthly or quarterly. If you need a regular monthly check, this fund will not deliver it on its own.
- A 30-day SEC yield of 0.67% (Investor) or 0.91% (Institutional).
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That yield is low compared with SCHD because the Shariah screen removes the banks, tobacco companies and utility names with heavy debt loads that drive conventional dividend yields. What remains is a portfolio of industrials, health care and technology companies that pay modest dividends and grow them. The fund also distributed sizeable capital gains in December 2025, which is common for an older mutual fund with embedded gains and is another reason to hold AMANX in a tax-advantaged account where possible. See the AMANX verdict for the screening detail.
Building a halal income portfolio with these parts
Because no single fund does what SCHD does, most halal income investors blend. Here is one illustrative split using only the four funds above, with weighted yields computed from the SEC yields in the table. These are our calculations and your actual payouts will vary with market prices.
| Allocation | Funds | Weighted 30-day SEC yield | Weighted expense ratio |
|---|---|---|---|
| Income first | 50% SPSK, 30% SPRE, 20% AMANX | 3.40% | 0.60% |
| Balanced | 35% SPSK, 25% SPRE, 25% AMANX, 15% AMAPX | 2.99% | 0.67% |
| Growth tilt | 60% AMANX, 20% SPRE, 20% SPSK | 1.91% | 0.79% |
The weighted expense ratio tells you something that SCHD investors are not used to. SCHD costs a few basis points; the halal income options cost between 0.50% and 0.99%. Over a 20-year holding period, a 0.60% fee drag compounds into a meaningful amount of lost income, so the decision to go halal has a measurable price. It is a price many Muslim investors choose to pay knowingly, but it should be known.
Purification and the dividend investor
Dividends from a Shariah-screened equity fund still need purification. The screen tolerates up to 5% of revenue from impermissible sources and allows some interest income on corporate cash, and that fraction of each dividend must be given away. Saturna's Amana funds publish a purification figure for shareholders each year; SP Funds publishes a purification ratio on its site. Sukuk distributions and REIT rental income are generally treated as clean, but a REIT fund can hold a small interest component from cash reserves, so check the issuer's purification note annually. The mechanics of giving the impure portion away are covered in what to do with bank interest, and the same channels work for dividend purification.
Verdict: is there a halal dividend ETF worth buying?
If you want a single ticker that behaves like SCHD, there is no halal equivalent in the United States and we do not expect one soon, because the screen removes most of the yield that defines those funds. If you want monthly halal income from one ETF, SPRE is the closest product and SPSK is the higher-yielding complement, and together they are what most investors on this site end up holding for the income sleeve. AMANX is the right choice for someone who wants dividend-growth equities inside a Shariah screen and does not mind a semi-annual payout and a 0.99% fee. Keep sukuk and REIT funds in tax-advantaged accounts where you can, because their distributions are ordinary income. For the broader portfolio these funds usually sit inside, see the investing hub. Facts checked against sp-funds.com, saturna.com and wahed.com on September 15, 2026.
Frequently asked questions
Is there a halal version of SCHD?
No. SCHD's methodology favors financials and consumer staples companies that fail the Shariah screen, and no US issuer has launched an ETF that applies both a Shariah filter and a dividend-quality filter. The nearest substitutes are SPRE for monthly real estate income, SPSK for sukuk income, and AMANX for dividend-paying halal stocks. You combine them rather than buying one fund.
What is the highest yielding halal ETF in the US?
On September 15, 2026, SPSK showed the highest 30-day SEC yield of any US-listed halal fund at 5.04%. SPRE followed at 2.50%, and the Amana Participation Fund mutual fund showed 3.04% for its Investor class. Broad halal equity ETFs such as SPUS yield well under 1%. Yields change daily, so confirm on the issuer's page before you buy.
Are REIT dividends halal?
Dividends from a Shariah-screened REIT are considered halal by the index providers that screen them because the income is rent from property rather than interest, provided the REIT's debt stays under the ratio ceiling and its tenants are not primarily engaged in prohibited businesses. SPRE applies those screens. A conventional REIT ETF such as VNQ does not screen for debt or tenant activity and is not treated as compliant.
Why is the Amana Income Fund yield so low if it is a dividend fund?
Because the Shariah screen removes the sectors that generate most US dividend yield: banks, insurers, tobacco, alcohol and heavily indebted utilities. What remains are quality companies with modest payouts. The fund's objective is current income and capital preservation, but in practice its 0.67% SEC yield means most of your return comes from price appreciation and capital gain distributions rather than cash dividends.
Do I need to purify income from SPRE or SPSK?
Sukuk income from SPSK is generally treated as clean. SPRE's rental income is also clean, but a REIT fund can hold a small amount of interest-bearing cash, and SP Funds publishes a purification ratio so you can calculate the portion to give away. For AMANX, Saturna publishes an annual purification figure. Check the issuer's figure each year and donate that share of your distributions.
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Should I hold these funds in a taxable account or an IRA?
REIT and sukuk distributions are taxed as ordinary income, and AMANX has paid sizeable capital gain distributions in December. All three are better held in an IRA, 401(k) or HSA where distributions are not taxed annually. If you must hold them in a taxable account, prefer SPRE and SPSK's ETF structure over the mutual funds because ETFs rarely distribute capital gains.
