Is SP Funds S&P 500 Sharia ETF (SPUS) Halal?
SP Funds S&P 500 Sharia ETF (SPUS) · SPUS · NYSE Arca
SPUS is Shariah-compliant by design. It tracks a Shariah-screened version of the S&P 500 — holding the constituents that pass sector and AAOIFI financial-ratio screens (around 200+ companies), weighted by market cap — under the supervision of a Shariah board. It is the closest thing to a 'halal S&P 500'. As with any screened fund, a small residual amount of non-compliant income remains, which the fund discloses as a purification ratio (recently ~2% of dividends) for investors to donate.
Screening basis: AAOIFI Shariah standards · Last reviewed 2026-06-15
HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.
Do the halal screening authorities agree?
- HalalWallet (AAOIFI)· Halal
HalalWallet (AAOIFI) rates SP Funds S&P 500 Sharia ETF (SPUS) halal; no other recognized authority has a published position.
Stances are normalized from each authority's own dated public position. Disagreement usually reflects a methodology or standard difference (ratio timing, market-cap vs total-assets denominator), not an error. For the fund screens (Wahed/HLAL, SP Funds/SPUS), only a confirmed holding that passed the fund's screen counts as a pass — a non-holding is left blank because absence can reflect index scope.
Is SP Funds S&P 500 Sharia ETF (SPUS) Halal?
SPUS is Shariah-compliant by design. It tracks a Shariah-screened version of the S&P 500 — holding the constituents that pass sector and AAOIFI financial-ratio screens (around 200+ companies), weighted by market cap — under the supervision of a Shariah board. It is the closest thing to a 'halal S&P 500'. As with any screened fund, a small residual amount of non-compliant income remains, which the fund discloses as a purification ratio (recently ~2% of dividends) for investors to donate.
How we read the evidence
HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.
SPUS is, in effect, the answer to the 'is the S&P 500 halal?' question. SP Funds built it to track a Shariah-screened version of the S&P 500: start with the index, then remove every company in an impermissible sector (conventional finance, alcohol, gambling, tobacco, adult entertainment) and every company that breaches the AAOIFI financial-ratio limits on interest-bearing debt and interest income. What remains — a little over 200 companies, weighted by market cap and tilted toward large-cap technology — is the compliant subset, and that is what you own when you buy SPUS.
What makes it genuinely halal rather than merely marketed as such is the governance. A Shariah supervisory board reviews and approves the screening methodology before it is applied, audits the holdings on an ongoing basis, and — crucially — publishes a purification ratio. No screened equity fund is perfectly pure, because even compliant companies earn a little interest on their cash; the honest, scholarly approach is to disclose that residual and tell investors how much to donate. SPUS's purification ratio has recently run around 2% of dividends.
The practical trade-offs are cost and concentration. SPUS charges roughly 0.49% versus 0.03% for a conventional S&P 500 fund, and because screening removes financials and over-leveraged names, the portfolio is more concentrated and more technology-heavy than the headline index. For most Muslim investors seeking passive, diversified U.S. large-cap exposure, that is a reasonable price for compliance — and it is why SPUS, alongside Wahed's HLAL, is one of the two default building blocks of a halal U.S. equity portfolio. Apply the purification ratio, avoid margin and short-selling, and treat it as a long-term holding.
Business Activity Screen
A passive ETF (listed Dec 2019, NYSE Arca) tracking a Shariah-screened version of the S&P 500: it holds the S&P 500 companies that pass the S&P Dow Jones Shariah sector and financial-ratio screens, weighted by market cap. Top holdings are large-cap technology names (Apple, Nvidia, Microsoft, Amazon, Meta).
Companies in impermissible sectors (conventional finance, alcohol, gambling, tobacco, adult entertainment) and those breaching AAOIFI debt/interest-income limits are removed. A Shariah supervisory board reviews and approves the methodology and audits holdings; the fund publishes an annual purification ratio for the small residual non-compliant income.
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds Shariah Supervisory Board
Reviews and approves the S&P Dow Jones Shariah screening methodology, audits the portfolio, and certifies SPUS as Shariah-compliant, with a published purification ratio for residual income.
Source →Mainstream view
A Shariah-screened index ETF that removes impermissible sectors, applies AAOIFI/S&P ratio screens, and provides purification guidance is permissible passive exposure for Muslim investors (subject to performing the purification and avoiding leverage/short-selling).
Source →
Purification
SPUS holds screened companies that still earn small amounts of incidental interest on corporate cash, so the fund publishes an annual purification ratio (recently around 2% of distributions). Donate that percentage of your dividends to charity to cleanse the residual non-compliant income — our purification calculator automates the math.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
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The Final Step: Your Scholar Conversation
Major whether SP Funds S&P 500 Sharia ETF (SPUS) is halal decisions involve nuances that vary by scholarly opinion and personal circumstance — which is why HalalWallet is built as the research step, not the ruling. We do the homework on comparisons, structures, and oversight; a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor covers what no comparison site can — guidance specific to your situation. Bring your shortlist to that conversation so it starts at the decision, not the basics.
How to use this comparison: HalalWallet is an independent educational comparison platform — by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider — their quote is final.
- 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.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
- SP Funds — SPUS S&P 500 Sharia ETF (methodology, Shariah board, purification)
- AAOIFI Shariah Standard No. 21 (investment in shares)
- Wahed — what makes an ETF halal (standard S&P 500 ETFs are not)
- HalalWallet Methodology
- HalalWallet Editorial Policy
- Halal Stock Screening Methodology (AAOIFI)
- Why Halal Stock Screeners Disagree
- Halal Stock Screeners Compared
- SPUS vs HLAL — Halal ETF Comparison
- HalalWallet Methodology
- Editorial Policy
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- Halal verdict corpus (JSON)
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Editorial Team, HalalWallet
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