SPTE — SP Funds S&P Global Technology ETF Review
SPTE offers targeted exposure to global technology companies within a Shariah-compliant framework. Is a sector-specific halal ETF right for your portfolio?
Quick Answer
- 1SPTE tracks a Shariah-screened subset of the S&P Global 1200 Information Technology Index — providing focused technology exposure without compromising on Islamic finance principles.
- 2At 0.55% expense ratio, SPTE is the only US-listed Shariah-compliant technology sector ETF, filling a gap for investors who want explicit tech allocation.
- 3Certified by Ratings Intelligence Partners. Investors already holding SPUS get significant tech overlap — SPTE is best for those wanting additional tech tilt beyond a core holding.
01Fund Overview
SPTE (SP Funds S&P Global Technology ETF) is a sector-specific ETF that applies Shariah screening to global technology companies. Unlike broad-market halal ETFs like SPUS, which naturally overweight tech after excluding financials, SPTE deliberately targets the technology sector.
The fund tracks a Shariah-screened version of the S&P Global 1200 Information Technology Index. After applying AAOIFI-inspired business activity and financial ratio screens, the fund holds companies from the US, Europe, and Asia-Pacific technology sectors.
SPTE is certified Shariah-compliant by Ratings Intelligence Partners. As a sector fund, it carries higher concentration risk than broad-market ETFs but provides precision for investors who want explicit technology sector allocation.
02Screening Methodology
SPTE applies the same AAOIFI-inspired screening methodology as other SP Funds products. Business activity screens exclude companies with revenue from prohibited sources. Financial ratio screens remove companies with excessive debt or interest-bearing assets relative to market capitalization.
Because the starting universe is already technology companies, the screening process removes fewer companies than in a broad-market ETF. Most tech companies naturally pass the business activity screen — the financial ratio screens are the primary filter, removing companies with high leverage.
The result is a concentrated portfolio of Shariah-compliant technology companies from developed markets globally. Top holdings typically include the same mega-cap tech names found in SPUS, but without the non-tech companies that provide diversification in the broader fund.
03Overlap with SPUS and Portfolio Considerations
A key consideration for SPTE investors is overlap with existing holdings. SPUS already has 40–50% technology weighting after Shariah screening excludes financials. Adding SPTE on top creates significant double-counting of the same companies.
SPTE is most useful for investors who: (1) do not already hold SPUS or another broad halal ETF, (2) want to construct a sector-based portfolio with explicit allocations, or (3) want to overweight technology beyond what SPUS provides.
For most investors, SPUS alone provides sufficient technology exposure. SPTE is a precision tool for portfolio construction, not a replacement for broad-market ETFs. The 0.55% expense ratio is also slightly higher than SPUS's 0.49%.
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Frequently Asked Questions
Compliance classification: [ANALYSIS]
This content is for educational and informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Shariah compliance assessments are based on publicly available data and established screening methodologies. They are not religious rulings (fatwas). Investors should consult a qualified Shariah scholar and a licensed financial advisor before making investment decisions.
All data is sourced from public filings and third-party providers. Compliance status is subject to change at quarterly reviews. Past performance is not indicative of future results. Halal Terminal is not a broker-dealer or investment advisor.