The fund tracks the S&P 500 Sharia Industry Exclusions Index and passively invests in US large-cap stocks, excluding industries prohibited under Islamic law (alcohol, tobacco, gambling, conventional financials, weapons, pornography, and others). Holdings must also meet debt ratio criteria, so the portfolio tends to have relatively strong financial health.

It suits long-term investors who value Islamic ethical standards or socially responsible investing principles while still wanting to participate in the growth of US large-cap stocks.

It is a passively managed (index-tracking) ETF launched by SP Funds in 2019.

The fund holds about 200 stocks from the S&P 500 after removing those in Sharia-prohibited industries and those exceeding debt thresholds. It is managed on a market-cap-weighted basis. Because financials, defense, alcohol, gambling, and similar industries are excluded, the weights of technology, health care, and consumer staples tend to be higher than in a standard S&P 500 ETF.

• Excluding Sharia-prohibited industries relatively increases the weight of technology and health care
• Only stocks that meet debt ratio criteria are included, applying a financial health filter

Assets under management (AUM) stand at $3.4B, and the expense ratio is 0.45% per year.

Compared with HLAL, another ETF in the Sharia-compliant category, this fund is based on the S&P 500, so its tracked index and holdings differ. Its fees are somewhat higher than those of standard S&P 500 ETFs such as SPY, VOO, and IVV.

Given its heavy weighting in technology and health care, the fund tends to outperform a standard S&P 500 ETF when US Big Tech is strong. The exclusion of financial stocks also leaves it relatively less sensitive to interest rates.

Demand from investors seeking to follow Islamic finance principles has grown steadily, and the fund's assets have continued to expand. Rising interest in ethical investing more broadly has also supported inflows.

The Sharia-based industry filter and financial health criteria set the fund apart, while its fees and the higher concentration that comes with fewer holdings are the main considerations.

Among the products in the table, SPYX is an S&P 500 ETF that excludes fossil fuel companies and takes a similar ethical-screening approach, while SNPE is an S&P 500 variant that reflects ESG scores. OMFL is a multifactor ETF managed on a factor basis, and RWL is an S&P 500 variant that reflects a profitability factor, so its direction differs somewhat. A direct Sharia-compliant alternative is HLAL, managed by Wahed. To compare against standard S&P 500 core ETFs, you can also review SPY, VOO, and IVV.

Here are the points to review before investing in SPUS. It is important to check in advance how the Sharia screens affect portfolio composition and sector allocation, as well as the cost level relative to standard ETFs.

Because financials, defense, and alcohol are excluded, performance can diverge from a standard S&P 500 ETF during sector rotations. The portfolio is narrowed to about 200 holdings, so diversification is somewhat weaker, and fees that are higher than competing ETFs are another factor to keep in mind for long-term investing.

If you want to exclude certain industries in line with Islamic law or ethical standards while still participating in the growth of US large-cap stocks, SPUS is a viable choice. If cost is your priority, a standard S&P 500 ETF may be better, and if Sharia compliance is the criterion, you can compare SPUS with HLAL.