HLAL is one of the most widely discussed halal ETFs available to Muslim investors in the United States.
The Wahed FTSE USA Shariah ETF (HLAL) is designed to give investors exposure to a diversified portfolio of U.S. stocks that have been screened according to Islamic investment principles.
Instead of requiring investors to research and screen individual stocks themselves, HLAL bundles many Sharia-screened companies into a single exchange-traded fund.
This approach allows Muslim investors to access diversified stock market exposure while attempting to avoid companies involved in industries or financial practices that conflict with Islamic guidelines.
If you want to compare halal ETF options available to U.S. investors, you can also explore the halal ETF comparison page.
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What Is the HLAL ETF?
HLAL is an exchange-traded fund that invests in U.S. companies that meet Sharia compliance screening standards.
The fund tracks the FTSE USA Shariah Index, which is derived from the broader FTSE USA Index but removes companies that do not meet Islamic investment guidelines.
HLAL launched in 2019 and trades on the Nasdaq stock exchange.
Because the fund is passively managed, it attempts to follow the performance of the underlying index rather than actively selecting stocks.
| Feature | Details |
|---|---|
| ETF Name | Wahed FTSE USA Shariah ETF |
| Ticker | HLAL |
| Provider | Wahed |
| Launch Year | 2019 |
| Index Tracked | FTSE USA Shariah Index |
| Asset Class | U.S. equities |
| Expense Ratio | 0.50% |
Like other ETFs, HLAL trades on the stock market and can be bought or sold through a brokerage account.
How Sharia Screening Works in HLAL
The companies included in HLAL are screened using Islamic investment guidelines.
These screening methods typically evaluate both business activities and financial ratios.
Business activity screening
Companies involved in industries that conflict with Islamic principles are removed from the index.
- conventional banking and interest-based finance
- alcohol production
- gambling businesses
- adult entertainment
- pork-related products
- certain weapons and defense industries
Financial ratio screening
Companies must also meet financial thresholds designed to limit excessive reliance on interest-based debt.
These financial filters attempt to ensure that the businesses included in the fund operate within acceptable limits according to Islamic finance guidelines.
Major Holdings in the HLAL ETF
Because HLAL tracks a broad Sharia-screened index, it holds a large number of U.S. companies across multiple industries.
Many of the largest holdings are well-known technology and healthcare companies.
| Company | Sector |
|---|---|
| Apple | Technology |
| Microsoft | Technology |
| Alphabet | Technology |
| Meta Platforms | Technology |
| Tesla | Automotive / Technology |
| Eli Lilly | Healthcare |
Technology companies often represent a large share of halal ETFs because Islamic screening removes many conventional financial institutions that dominate traditional stock indexes.
Pros of the HLAL ETF
- Diversified exposure to U.S. stocks
- Sharia-screened investment methodology
- Simple way to invest without screening individual companies
- Accessible through most brokerage accounts
For many Muslim investors, HLAL offers a relatively simple entry point into halal stock investing.
Limitations to Consider
- Expense ratios are typically higher than conventional index ETFs
- Sector diversification may differ from traditional market indexes
- Some scholars differ on specific screening standards
Because Islamic screening removes certain industries, halal ETFs may have different performance patterns compared with traditional index funds.
HLAL vs Other Halal ETFs
HLAL is often compared with other Sharia-screened ETFs available to U.S. investors.
| ETF | Provider | Focus |
|---|---|---|
| HLAL | Wahed | U.S. Sharia-screened equities |
| SPUS | SP Funds | Sharia-screened S&P 500 companies |
Both funds aim to provide diversified exposure to U.S. equities while applying Islamic investment screens.
You can read our detailed breakdown of the other major halal ETF here:
Who Might Consider HLAL?
HLAL may be considered by investors who want diversified exposure to the U.S. stock market while attempting to follow Islamic investment guidelines.
Some investors use halal ETFs as part of long-term portfolios such as retirement savings or diversified investment strategies.
If you are new to investing, it may also be helpful to read our guide on:
How Muslims Can Start Investing
Frequently Asked Questions
Is HLAL a halal ETF?
HLAL is designed to follow Sharia screening standards and invests only in companies that meet those guidelines according to the index methodology.
Does HLAL pay dividends?
Like many stock ETFs, HLAL distributes dividends generated by the companies held in the portfolio.
Can Muslims invest in HLAL long term?
Many investors use halal ETFs such as HLAL as part of long-term investment portfolios.
Is HLAL the same as SPUS?
No. Both are halal ETFs, but they track different indexes and may hold different companies.
The Bottom Line
The HLAL ETF provides Muslim investors with a way to access diversified U.S. stock market exposure while applying Sharia screening rules.
As one of the more widely known halal ETFs available to U.S. investors, HLAL is often used by Muslims who want a simple way to participate in the stock market without selecting individual companies.
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If you want to compare halal ETFs available to U.S. investors, you can explore the HalalWallet comparison page:
