SPUS vs SPWO: US vs International Halal ETFs
SPUS covers the US. SPWO covers everything else. How should you split your global halal equity allocation?
Quick Answer
- 1SPUS tracks the S&P 500 Shariah Index (~230 US large-cap stocks). SPWO tracks the S&P Developed ex-US BMI Shariah Index (international developed markets). Together, they provide complete global developed-market halal equity coverage.
- 2Both are from SP Funds with AAOIFI-inspired screening by Ratings Intelligence Partners. SPUS charges 0.49%, SPWO charges 0.55%.
- 3The right split depends on your global allocation view. A 60/40 SPUS/SPWO split approximates global market-cap weighting. A 70/30 split maintains a US overweight.
Head-to-Head Comparison
| Feature | SPUS | SPWO |
|---|---|---|
| Index | S&P 500 Shariah | S&P Dev ex-US BMI Shariah |
| Geography | US Large Cap | International ex-US |
| Expense Ratio | 0.45% | 0.49% |
| AUM | $178M | $45M |
| Shariah Board | Ratings Intelligence Partners | Ratings Intelligence Partners |
| Top Sector | Technology (~45%) | Varies by region |
| Currency | USD | USD (underlying: EUR, GBP, JPY) |
| Overlap | None — US only | None — ex-US only |
| Use Case | Core US equity | International diversification |
01Fund Comparison Overview
SPUS and SPWO are designed to be used together. SPUS provides Shariah-compliant US large-cap equity exposure, while SPWO provides Shariah-compliant international developed-market exposure. There is zero overlap between the two funds.
Both use the same screening methodology — AAOIFI-inspired screens applied by S&P Dow Jones Indices with Shariah certification from Ratings Intelligence Partners. This consistency means investors can combine the funds with confidence that screening standards are uniform.
02Allocation Strategies
The US represents approximately 60% of global developed-market equity capitalization. A market-cap-weighted approach would allocate roughly 60% SPUS / 40% SPWO. This is the most diversified approach and avoids home-country bias.
Many US-based investors prefer a home-country overweight: 70% SPUS / 30% SPWO. This reduces currency risk, aligns with US dollar income and expenses, and reduces the impact of international underperformance during strong-dollar periods.
There is no objectively correct split — it depends on your investment horizon, currency exposure needs, and conviction about relative US vs. international returns. All allocation approaches are valid. This is not investment advice.
03Key Differences to Consider
AUM and liquidity: SPUS (~$800M+) is far more liquid than SPWO (~$30M). Investors trading large positions in SPWO should be mindful of bid-ask spreads, which may be wider than SPUS.
Sector composition: SPUS is heavily tech-weighted (~45%) due to Shariah screening excluding financials from the US market. SPWO has more balanced sector weights because international markets are less tech-concentrated.
Currency risk: SPWO's underlying holdings are in non-USD currencies. When the USD strengthens, SPWO returns decrease in USD terms (and vice versa). SPUS has no currency risk for USD-based investors.
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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.