HLAL ETF: What Is It? — Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
A US equity ETF built on Shariah principles — tailored for Islamic finance adherents seeking to align religious values with investment returns.
SubscribeWhat is this ETF?
It is a US equity ETF tracking the FTSE Shariah USA Index. Launched in 2019 by Wahed Invest, it holds 209 large- and mid-cap stocks that comply with Islamic finance principles.
It is well suited for Islamic finance adherents who want to pursue investment returns while upholding their religious and ethical beliefs.
The ETF was launched in 2019 by Wahed Invest and operates as a passive (index-tracking) fund.
Here is the rewritten sentence in pure natural English: "How does it invest?"| Item | Details |
|---|---|
| Tracking Index | FTSE Shariah USA Index |
| Management Style | Passive (index tracking) |
| Shariah Review | Yasaar Limited |
| Dividend Schedule | Quarterly |
| Total Expense Ratio | 0.50% |
From the constituents of the FTSE USA Index, it selects companies that meet Shariah standards and weights them by market capitalization. Companies generating excessive revenue from Shariah-prohibited business lines are excluded, and the portfolio undergoes an annual re-verification by the Shariah consultant.
- Compliance with Islamic finance principles
- Oversight by an independent Shariah consultant
Size and Cost
Assets under management (AUM) stand at $935.1M, and the total expense ratio is 0.50% per year.
It shares similarities with other US equity ETFs that apply ethical-based screening, such as QUS, USSG, and SIZE, but HLAL is specifically tailored to Islamic finance criteria.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund is affected by the overall US market cycle and corporate earnings cycle. Due to the Shariah filtering process, the portfolio is tilted relatively more toward technology stocks.
Global investor inflows have been trending higher amid rising interest in Islamic investing, and assets have been expanding as demand for Islamic finance grows in the Middle East and Asia.
Strengths and Weaknesses
The biggest strength is that it allows conviction-based investing to coexist with diversified returns, while the limited investable universe created by Shariah filtering is a key drawback.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
Factor-based ETFs such as QUS, USSG, and SIZE focus on specific investment styles, whereas HLAL prioritizes religious and ethical criteria. Another Shariah-compliant option is MNZL (Manzil Russell Halal USA), and investors seeking a broader ethical mandate may also want to consider ESG and sustainability ETFs.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 QUS | State Street SPDR MSCI USA StrategicFactors SM ETF | $197.46 | +0.1% | $1.6B | 0.15% | 1.23% | +14.6% |
 USSG | Xtrackers MSCI USA Selection Equity ETF | $69.20 | -0.9% | $546.0M | 0.09% | 0.99% | +9.1% |
 SIZE | iShares MSCI USA Size Factor ETF | $181.04 | -0.2% | $435.3M | 0.15% | 1.36% | +12.4% |
 SHE | State Street SPDR MSCI USA Gender Diversity ETF | $151.85 | -0.4% | $339.2M | 0.20% | 1.15% | +16.0% |
 MNZL | Manzil Russell Halal USA Broad Market ETF | $60.27 | -0.1% | $39.2M | 0.40% | 0.03% | - |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 TPG | TPG Inc | - | $48.79 | -0.6% | $18.8B | 56.1 | 4.82% |
| AAPL | Apple Inc | 0.39% | $348.51 | -0.6% | $5.06T | 38.8 | 0.33% |
| NVDA | NVIDIA Corp | 0.13% | $168.89 | -5.5% | $4.07T | 21.4 | 0.46% |
| MSFT | Microsoft Corp | 0.30% | $533.16 | -2.2% | $3.96T | 27.8 | 0.73% |
| GOOGL | Alphabet Inc | 0.07% | $287.38 | -0.3% | $3.50T | 15.0 | 0.3% |
Investor Checklist
Investing in HLAL is a deliberate choice for those looking to balance religious and ethical convictions with investment returns. Investors should understand the Shariah criteria and confirm alignment with their own beliefs before proceeding.
| Checklist Item | What to Confirm | Current Status |
|---|---|---|
| 🙏 Faith Criteria | Understanding of Shariah principles | Under independent review |
| 💰 Expense Ratio | Level of operating cost at 0.50% | Must verify |
| 📊 Diversification | Diversification across 209 holdings | Adequate level |
| 📈 Performance | Performance trend vs. broad-market ETFs | Review periodically |
Because Shariah filtering limits the set of eligible stocks, diversification may be lower than that of broad-market US equity ETFs. Additionally, Shariah criteria can shift with consultant interpretation, creating a risk of portfolio adjustments.
The fund is well suited as a first choice for investors seeking to reconcile religious convictions with investment returns. Those who agree with Shariah criteria and can accept the relatively higher expense ratio will find sufficient investment merit.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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