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HLAL Wahed FTSE USA Shariah ETF

Category: Large Cap Growth Equities

Inception: 2019-07-15 Issuer: Wahed
Net Assets
$555.1M
Expense Ratio
0.50 %
# of Holdings
208
Average Daily Volume
89.2K

Fund Overview

The Wahed FTSE USA Shariah ETF (HLAL) is an exchange-traded fund designed to provide investors with exposure to U.S. large- and mid-cap equities that comply with Islamic principles. The fund tracks the FTSE USA Shariah Index, which screens companies based on Shariah-compliant business activities and financial ratios. HLAL excludes companies involved in industries such as alcohol, gambling, conventional financial services, and pork-related products. Additionally, the index applies financial screens to ensure companies meet specific debt-to-asset and cash-to-asset thresholds. HLAL offers a unique investment opportunity for those seeking alignment with Islamic finance principles while gaining diversified exposure to the U.S. equity market.
Asset Class
Equity
Industry
N/A
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - 0.72 %
Currency Hedged
No
Portfolio Turnover
7 %
Dividend Date

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Why Invest in the HLAL ETF?

Potential Benefits

  • Provides Shariah-compliant exposure to U.S. equities, aligning with Islamic finance principles.
  • Diversified portfolio of large- and mid-cap stocks, reducing single-stock risk.
  • Lower exposure to highly leveraged companies due to Shariah financial screens.
  • Transparent and rules-based methodology tied to the FTSE USA Shariah Index.
  • Competitive expense ratio compared to other Shariah-compliant ETFs.

Potential Risks

  • Limited sector diversification due to exclusion of conventional financials and other non-compliant industries.
  • Performance may deviate from broad market indices due to Shariah screening criteria.
  • Higher concentration in technology and healthcare sectors, which may increase volatility.
  • Liquidity risk, as trading volumes may be lower than mainstream ETFs.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
+4.09% +6.66% +39.48% +66.75% +81.81% +3.88% +19.16% +17.16% +376.50%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +1.8% -0.6% -8.9% +12.0% - - - - - - - -
2025 +2.4% -5.2% -5.2% -0.8% +6.0% +4.2% +2.9% +3.8% +4.4% +3.8% +0.7% +1.0%
2024 +2.0% +1.6% +2.5% -2.4% +2.0% +5.9% -1.7% +1.4% +2.5% +0.2% +1.7% +0.1%
2023 +4.4% +0.4% +4.1% +2.3% +3.2% +4.6% +4.3% -1.5% -4.3% -3.5% +9.5% +4.3%
2022 -7.3% -0.9% +6.5% -6.3% -1.7% -8.8% +7.2% -2.3% -8.4% +6.7% +0.8% -2.9%
2021 +3.0% -2.1% +2.7% +5.6% -0.8% +3.2% +2.8% +3.1% -4.1% +6.2% +2.7% +4.3%
2020 +1.8% -10.3% -12.2% +13.9% +3.9% +1.6% +7.1% +11.0% -4.6% -0.5% +9.1% +5.0%
2019 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% +0.4% -3.3% +2.1% +3.4% +4.4% +3.4%
2018 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2017 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
MSFT MICROSOFT CORP 14.1 %
AAPL APPLE INC 13.5 %
META META PLATFORMS INC CLASS A 5.9 %
GOOGL ALPHABET INC CLASS A 4.5 %
GOOG ALPHABET INC CLASS C 3.8 %
TSLA TESLA INC 3.2 %
XOM EXXON MOBIL CORP 2.4 %
PG PROCTER & GAMBLE CO 2.0 %
JNJ JOHNSON & JOHNSON 1.9 %
KO COCA-COLA CO 1.4 %
Top 10 holdings shown, out of 208 total holdings.

Related ETFs: HLAL vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
SPUS SP Funds S&P 500 Sharia Industry Exclusions ETF 0.45 % $1.1B 224 Equity
UMMA Wahed Dow Jones Islamic World ETF 0.65 % $116.9M 95 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

HLAL tracks the FTSE USA Shariah Index, which selects U.S. large- and mid-cap stocks that comply with Shariah principles. The index applies business activity screens to exclude companies involved in prohibited industries and financial screens to ensure compliance with debt and cash thresholds. The fund is passively managed and rebalanced quarterly to maintain alignment with the index. Holdings are weighted by market capitalization, providing a natural reflection of the Shariah-compliant U.S. equity market. HLAL primarily holds common stocks and does not use derivatives or leverage.

Frequently Asked Questions

What makes HLAL Shariah-compliant?

HLAL excludes companies involved in prohibited industries (e.g., alcohol, gambling) and applies financial screens to ensure compliance with Islamic principles regarding debt and interest.

Does HLAL pay dividends?

Yes, HLAL pays dividends, but they are screened to ensure they come from permissible sources and do not include interest income.

How often is HLAL rebalanced?

HLAL is rebalanced quarterly to align with the FTSE USA Shariah Index.

Can non-Muslim investors buy HLAL?

Yes, HLAL is available to all investors, not just those seeking Shariah-compliant investments. It may appeal to anyone interested in ethically screened portfolios.

Industry Overview

The Wahed FTSE USA Shariah ETF (HLAL) operates within the niche but growing market of Shariah-compliant investing. This segment caters to investors seeking financial products that adhere to Islamic principles, which prohibit interest (riba) and investments in businesses involved in prohibited activities. The demand for Shariah-compliant ETFs has risen alongside the expansion of Islamic finance globally. HLAL provides a solution for investors who want exposure to U.S. equities while maintaining compliance with their ethical and religious values. The fund's methodology ensures alignment with Islamic law by screening out non-compliant companies and applying financial ratio filters.

Alternative Comparison

Compared to its closest peer, SPUS (SP Funds S&P 500 Sharia Industry Exclusions ETF), HLAL offers broader exposure by including mid-cap stocks, whereas SPUS focuses solely on the S&P 500. HLAL also has a slightly lower expense ratio (0.50%) compared to SPUS (0.55%). Another competitor, ISUS (Ishares MSCI USA Islamic ETF), tracks a different index (MSCI USA IMI Islamic Index) and includes small-cap stocks, but HLAL's FTSE-based methodology may appeal to investors preferring that index provider. Unlike some Shariah-compliant funds that use synthetic replication, HLAL holds physical stocks for direct exposure.

Issuer Overview

Wahed Invest is the issuer of HLAL, a fintech company specializing in Shariah-compliant investment solutions. Founded in 2015, Wahed aims to make ethical investing accessible to a broader audience through digital platforms and ETFs. The company combines traditional Islamic finance principles with modern investment strategies, offering products like HLAL to meet the needs of Muslim investors and others interested in ethical investing.

Conclusion

The Wahed FTSE USA Shariah ETF (HLAL) is a well-structured option for investors seeking Shariah-compliant exposure to U.S. equities. Its transparent methodology, diversified holdings, and competitive cost make it a compelling choice in the niche market of Islamic finance ETFs. While it carries some sector concentration risks due to Shariah screening, it provides a principled approach to investing without sacrificing broad market participation.

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