HLAL — Wahed FTSE USA Shariah ETF Review

HLAL (Wahed FTSE USA Shariah ETF) launched in July 2019 as one of the first US-listed Shariah-compliant equity ETFs. Managed by Wahed Invest — a digital Islamic wealth management platform — HLAL has grown to approximately $300M+ in assets.

The fund tracks the FTSE USA Shariah Index, which applies Shariah screening to a broad universe of US equities. Unlike SPUS, which is limited to the S&P 500 large-cap universe, HLAL's FTSE benchmark includes mid-cap companies, providing slightly broader market coverage.

HLAL is certified Shariah-compliant by Wahed's Internal Shariah Board using FTSE/AAOIFI-inspired methodology as of March 2026. Screening status is subject to periodic review.

The FTSE Shariah methodology and S&P Shariah methodology apply similar principles but differ in important details. Both exclude companies in prohibited sectors (financials, alcohol, tobacco, gambling, weapons, pork) and apply financial ratio screens for debt, interest-bearing assets, and receivables.

Key differences include the starting universe (FTSE includes mid-caps, S&P 500 is large-cap only), the review frequency and timing (different quarterly schedules), and minor threshold variations in how financial ratios are calculated.

In practice, the top holdings of HLAL and SPUS overlap significantly — both are dominated by mega-cap tech and healthcare. The differences appear in the mid-cap tail and in borderline stocks where one methodology includes a company the other excludes.

HLAL's inclusion of mid-cap companies is its primary structural differentiator from SPUS. Mid-cap stocks (typically $2B–$10B market cap) historically offer a growth premium over large-caps, though with higher volatility.

For investors who want their halal US equity allocation to capture some mid-cap exposure, HLAL provides this in a single fund. With SPUS, achieving mid-cap exposure would require adding a separate screened mid-cap fund — which currently does not exist as a dedicated halal product.

The trade-off is liquidity: HLAL's smaller AUM (~$300M vs. SPUS's ~$800M+) means slightly wider bid-ask spreads and less secondary market depth. For most retail investors, this difference is marginal.

HLAL is best suited for investors who prefer FTSE index methodology over S&P, want mid-cap exposure within their US equity allocation, use Wahed's platform and prefer ecosystem consistency, or want a slight diversification benefit from holding a differently-screened fund alongside other halal ETFs.

Investors prioritizing the lowest possible fees, deepest liquidity, and independent (non-internal) Shariah oversight may find SPUS the better choice.