SPUS vs HLAL — a detailed comparison of the two largest U.S.-listed Shariah-compliant ETFs. Covers index methodology, expense ratios, Shariah screening, income purification, and which halal ETF is the better fit for Muslim investors. Published by HalalWallet (halalwallet.us).
SPUS vs HLAL — Which Halal ETF is Better?
SPUS and HLAL are the two most popular U.S.-listed Shariah-compliant ETFs. This guide compares them across index methodology, expense ratios, Shariah screening, holdings, and income purification — everything you need to decide which is right for your halal portfolio.
Quick Comparison
Side-by-side overview of the two largest halal ETFs.
Index & Methodology
The biggest structural difference between SPUS and HLAL is the underlying index each fund tracks.
SPUS — S&P 500 Shariah Industry Exclusions
SPUS starts with the S&P 500 — the 500 largest U.S. public companies — and removes those that fail Shariah screening criteria. The screening is conducted by S&P Dow Jones Indices using their proprietary Shariah methodology, which evaluates business activities and financial ratios (debt-to-equity, interest income, receivables).
After filtering, SPUS typically holds approximately 230–240 stocks. Because its universe is limited to the S&P 500, SPUS is a large-cap focused halal ETF. It excludes companies involved in alcohol, tobacco, gambling, conventional financial services, weapons, and adult entertainment.
Key point: If you want Shariah-compliant exposure that mirrors the S&P 500 as closely as possible, SPUS is the most direct option available.
HLAL — FTSE USA Shariah Index
HLAL tracks the FTSE USA Shariah Index, which draws from a broader universe of U.S. equities — not limited to the S&P 500. The Shariah screening is conducted by Yasaar Ltd (a subsidiary of IdealRatings), which applies screening criteria to the full FTSE USA Index and removes non-compliant companies.
After filtering, HLAL typically holds approximately 180–200 stocks. Despite drawing from a wider universe, HLAL ends up with fewer holdings because the FTSE Shariah screening criteria may differ slightly from S&P's methodology in how financial ratios are calculated and which thresholds trigger exclusion.
Key point: HLAL offers exposure beyond just the S&P 500, potentially capturing mid-cap companies that pass Shariah screening but aren't in the S&P 500 index.
Different Screening, Different Results
S&P and FTSE use different Shariah screening methodologies. While the broad principles are the same (exclude haram industries, apply financial ratio screens), the specific thresholds and calculation methods can differ. This means a company might pass one screen but fail the other. Neither methodology is "more correct" — both are overseen by qualified Shariah scholars.
Expense Ratios & Costs
How fees compare between the two funds.
Nearly Identical Fee Structures
SPUS charges an expense ratio of 0.49% while HLAL charges 0.50%. The 0.01% difference is effectively meaningless — on a $10,000 investment, it amounts to roughly $1 per year.
Both expense ratios are higher than mainstream conventional ETFs (e.g., SPY at 0.09% or VOO at 0.03%), which reflects the additional cost of maintaining Shariah advisory boards, conducting ongoing compliance screening, and performing quarterly income purification. This is the "halal premium" that investors pay for Shariah compliance.
Bottom line: Cost should not be the deciding factor between SPUS and HLAL. Focus on which index methodology and underlying exposure better fits your investment goals.
Shariah Compliance & Purification
Both funds take Shariah compliance seriously — here's how they approach it.
SPUS Compliance
- Screened by S&P Dow Jones Shariah methodology
- Independent Shariah advisory board oversight
- Quarterly income purification with per-share amounts published
- Business activity and financial ratio screens
HLAL Compliance
- Screened by Yasaar Ltd / FTSE Shariah methodology
- Independent Shariah advisory board oversight
- Quarterly income purification with per-share amounts published
- Business activity and financial ratio screens
Both Are Genuinely Shariah-Compliant
Neither fund is "more halal" than the other. Both employ qualified Shariah scholars, apply rigorous screening, and perform income purification. The differences are in methodology details, not in the sincerity or rigor of compliance.
Which Should You Choose?
The right choice depends on what kind of U.S. equity exposure you want in your halal portfolio.
SChoose SPUS If…
- You specifically want S&P 500-like exposure in a Shariah-compliant wrapper
- You trust and prefer the S&P Dow Jones Shariah screening methodology
- You want a slightly lower expense ratio (0.49% vs 0.50%)
- You want to benchmark against the conventional S&P 500 for comparison purposes
HChoose HLAL If…
- You want broader U.S. equity exposure beyond just the S&P 500
- You trust and prefer the FTSE / Yasaar Shariah screening methodology
- You prefer the Wahed brand and its focus on Islamic finance
- You want potential exposure to mid-cap companies that pass Shariah screening
For Most Muslim Investors, Either Is a Strong Choice
The reality is that SPUS and HLAL are more similar than different. Both provide diversified, Shariah-compliant U.S. equity exposure at nearly the same cost. The most important step is investing consistently in either one — not agonizing over the small differences between them.
Explore our full halal investing guideOther Halal ETF Options
SPUS and HLAL aren't the only halal ETFs available. Here are other options to consider for portfolio diversification.
UMMA — Wahed Dow Jones Islamic World ETF
For international diversification, UMMA provides Shariah-compliant exposure to global equities outside the U.S. Pairing UMMA with either SPUS or HLAL gives you broader geographic coverage in a halal portfolio.
SPRE — SP Funds S&P Global REIT Sharia ETF
A Shariah-compliant real estate ETF that invests in global REITs passing Shariah screening. Offers exposure to real estate as an asset class while maintaining compliance.
APTS — Apartment Investment and Management (Halal Real Estate)
For investors interested in halal real estate exposure through a different structure, APTS provides access to the U.S. apartment and residential real estate market.
Frequently Asked Questions
Frequently Asked Questions
SPUS (SP Funds S&P 500 Sharia Industry Exclusions ETF) and HLAL (Wahed FTSE USA Shariah ETF) are the two largest halal ETFs in the U.S. Key differences: SPUS tracks the S&P 500 (excluding non-compliant companies) with a 0.49% expense ratio, while HLAL tracks the FTSE USA Shariah Index with a 0.50% expense ratio. Both screen out companies involved in alcohol, tobacco, gambling, weapons, and conventional finance. SPUS has a narrower universe (S&P 500 base) while HLAL covers broader U.S. equities. Both purify non-compliant income quarterly. For investors who want S&P 500 exposure specifically, SPUS is the better fit; for broader U.S. equity exposure, HLAL offers wider diversification.
- SPUS tracks S&P 500 Shariah (~230–240 holdings, 0.49% fee) while HLAL tracks FTSE USA Shariah (~180–200 holdings, 0.50% fee)
- Both ETFs have independent Shariah advisory boards and perform quarterly income purification
- The 0.01% expense ratio difference is negligible — index methodology matters more than cost
- Choose SPUS for S&P 500-specific exposure; choose HLAL for broader U.S. equity diversification
- For most Muslim investors, either ETF is a strong core holding for a halal portfolio
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-23
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Reviewed quarterly and updated when ETF data or Shariah screening methodologies change.
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.