SPFunds SP Funds 2040 Target Date Fund (SPTBX)
Halal Investing in Maryland
The SP Funds 2040 Target Date Fund (SPTBX) is a Sharia-compliant fund-of-funds for investors expecting to retire around 2040, built entirely from the five SP Funds ETFs. At the 2026-10-26 holdings snapshot it was growth-tilted: about 36% US large-cap (SPUS), 32% global technology (SPTE), 20% ex-US equity (SPWO), 5% global REITs (SPRE), 5% sukuk (SPSK) and 2% non-interest-bearing cash. Investor shares launched 6/28/2024 at a 1.32% total expense ratio; institutional shares (SPTNX, 8/29/2024) charge 0.92% with a $50,000 minimum. It is the largest of the three target-date funds at roughly $10.2M and returned 26.83% for the year to 9/30/2026 (17.29% annualized since inception), driven by its heavy technology weight.
SPTBX is the fund most halal savers in their 40s would reach for, and its first year looked excellent - but the return came from a technology weight that no conventional target-date fund would carry, so expect the volatility to match. The structure is clean (no gold, sukuk for the small income sleeve, cash without interest), and the inherited Sharia certification from the SP Funds ETFs is as good as the US halal fund market offers. The sticking points are cost and differentiation: 1.32% is steep for a fund that is 88% equity, and at this horizon its holdings mirror the 2050 fund almost exactly. Worth it inside an employer plan that offers it; a self-directed investor pays a third as much replicating it with SPUS, SPTE and SPWO.
Pros
- Self-rebalancing halal retirement allocation in a single mutual fund
- Underlying ETFs each publish Sharia certificates and quarterly purification factors
- Strong first-year result (26.83% to 9/30/2026) on the back of the technology sleeve
- $250 minimum, waived in IRAs and employer plans
Cons
- 1.32% Investor-class expense ratio - roughly three times the cost of the underlying ETFs held directly
- Allocation is nearly identical to the 2050 fund, so the glide path does little differentiation this far out
- 32% technology weight makes it far more concentrated than a conventional 2040 fund
- Small fund with a track record only since mid-2024; no fund-level Shariah certificate or purification factor
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Product Details
Type
Mutual Fund
Expense Ratio
1.32% (SPTBX) / 0.92% (SPTNX)
Min Investment
$250 ($50,000 institutional); $25 subsequent
Fee
0.45% (unitary fee to ShariaPortfolio, Inc.)
Account Types
Individual, IRA, Roth IRA, Employer retirement plan
Screening Method
AAOIFI standards via underlying SP Funds ETFs
Holdings
6 (SPUS, SPTE, SPWO, SPRE, SPSK, cash)
SPFunds in Maryland
SPFunds's SP Funds 2040 Target Date Fund (SPTBX) is available to investors in Maryland, structured as a Mutual Funds. The fund carries an expense ratio of 1.32% (SPTBX) / 0.92% (SPTNX). Its provider holds an A- grade on HalalWallet's HalalWallet Index. Maryland is home to an estimated ~189K Muslims (3.1% of the population) (World Population Review, 2020 estimates). SPFunds operates nationwide, so Maryland residents have full access to this product.
Our Take on SPFunds
SP Funds offers the broadest family of halal ETFs in the U.S. SPUS is a strong core equity holding at 0.45% expense ratio, and SPSK provides sukuk exposure that's hard to find elsewhere. Essential building blocks for a diversified halal portfolio.
How SPFunds Works
Open a Brokerage Account
Use any standard brokerage - Fidelity, Schwab, Vanguard, Robinhood, or others. No special halal brokerage needed.
Search for SP Funds Ticker
Search for the ticker you want: SPUS (equity), SPSK (sukuk), SPTE (tech), SPRE (real estate), or SPWO (international).
Buy Shares
Place a buy order just like any stock or ETF. Shares trade on NYSE Arca during market hours.
Hold and Monitor
SP Funds handles ongoing Shariah screening and index rebalancing. Your brokerage handles custody and reporting.
Financing Structure
SP Funds ETFs are exchange-traded funds that track Shariah-screened indexes. Each ETF holds a basket of securities that have passed AAOIFI-aligned screening criteria - companies are evaluated for debt ratios, interest income, and revenue from impermissible activities. The ETFs are passively managed, meaning they track their indexes rather than making active stock-picking decisions.
In-Depth Analysis
SP Funds, launched in 2019, manages the broadest family of Shariah-compliant exchange-traded funds (ETFs) listed on U.S. exchanges. Their flagship SPUS (S&P 500 Sharia Industry Exclusions ETF) provides large-cap U.S. equity exposure with a 0.45% expense ratio, making it one of the lowest-cost halal equity ETFs available.
What sets SP Funds apart is the breadth of their ETF lineup. Beyond SPUS, they offer SPSK (sukuk ETF at 0.55% expense ratio) - one of the only ways to access sukuk (Islamic bonds) through a U.S.-listed ETF. They also offer sector-specific ETFs: SPTE (technology at 0.55%), SPRE (real estate at 0.55%), and SPWO (international at 0.55%). This range allows investors to build a diversified halal portfolio using a single fund family.
SP Funds ETFs trade on NYSE Arca and can be purchased through any standard brokerage account - Fidelity, Schwab, Vanguard, Robinhood, or any platform that supports ETF trading. This means investors don't need a separate halal-specific brokerage. The main limitation is that SP Funds manages ETFs only; they don't provide advisory services, portfolio management, or a brokerage platform.
Shariah Compliance Details
- SP Funds employs a Shariah Advisory Board that oversees the screening methodology applied to all ETFs in the family.
- The screening criteria are aligned with AAOIFI standards, evaluating companies on financial ratios including total debt to market capitalization, interest-bearing investments, and revenue from impermissible activities.
- The indexes are rebalanced periodically to remove companies that no longer meet screening thresholds and add newly compliant companies.
How SPFunds Compares
SP Funds competes in the halal ETF space primarily against Wahed's HLAL ETF and against Amana Funds' mutual funds. The comparison depends on whether investors want an ETF or mutual fund and which expense ratio and index methodology they prefer.
HLAL (0.50% expense ratio) competes with SPUS (0.45%) as a halal large-cap equity ETF. Compare index methodology and performance.
Amana offers mutual funds with a longer track record since 1986. ETFs generally have lower ongoing costs.
Bottom Line
SP Funds provides essential building blocks for a diversified halal investment portfolio. SPUS for equities at 0.45%, SPSK for sukuk, and specialty ETFs for targeted exposure. If you're a self-directed investor, SP Funds ETFs should be on your shortlist.
Read full SPFunds reviewShariah Compliance & Oversight
The target-date funds do not carry their own Shariah certificate. Per the Feb 27, 2026 summary prospectus, the Adviser (ShariaPortfolio, Inc.) engages a third party to certify Shariah compliance of the affiliated SP Funds ETFs the fund holds, each of which publishes a Certificate of Sharia Accreditation and Sharia Auditor Report under AAOIFI-aligned screens. Fixed-income exposure comes from sukuk (SPSK) in lieu of conventional bonds, and the fund's cash allocation does not bear interest. The prospectus notes some holdings may generate dividend income subject to purification; SP Funds publishes quarterly purification factors for the underlying ETFs but not a separate factor for the target-date funds. The 2030 fund also holds a small position in SPDR Gold Shares (GLD), a third-party gold ETF with no published Shariah certification of its own.
2026-10-27
State Availability
SPFunds serves all 50 states + DC
✓ Available nationwide including Maryland
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Compare With Other Options in Maryland
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Fund reconstruction with AAOIFI screening (via Zoya) · Nationwide
Nationwide
Halal Investment Growth Estimate
See how your halal investments could grow over time
Total Value
$343,778
Contributed
$130,000
Growth
$213,778
Hypothetical projection. Past performance does not guarantee future results.
Compare FundsFrequently Asked Questions
What is SPFunds SP Funds 2040 Target Date Fund (SPTBX)?
What Shariah oversight does SPFunds SP Funds 2040 Target Date Fund (SPTBX) have?
Is SPFunds SP Funds 2040 Target Date Fund (SPTBX) available in Maryland?
What Shariah oversight does SPFunds have?
What financing structure does SPFunds SP Funds 2040 Target Date Fund (SPTBX) use?
How do I apply for SPFunds SP Funds 2040 Target Date Fund (SPTBX) in Maryland?
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Co-Founder, HalalWallet
How to use this comparison: Scholars rule; we organize the evidence. HalalWallet is an independent educational comparison platform - by design, we do not issue fatwas or provide financial, legal, or tax advice. We do the research homework so your final checks are quick and personal. Where our role ends and who takes over.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
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- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
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