tldr; SPUS is still the best proven halal ETF for 2026, with the strongest live performance record among US-focused Shariah-compliant funds. MNZL is the most interesting new entrant: cheaper at 0.40%, broader at 464 holdings, based on the Russell 1000, and the only fund in this comparison I found adding an explicit AFSC human-rights screen.12 The catch is that MNZL launched in November 2025, so its track record is still too young to crown it the winner.
Let's be blunt: Most halal ETFs are expensive, poorly diversified, and underperform the market. But there are a few worth considering, and more importantly, there's a better way to invest that we'll get to.
Key Takeaways
A halal ETF is a type of investment that lets you own a collection of Shariah-compliant stocks in a single purchase. These funds strictly follow Islamic financial principles, excluding companies involved in interest-based businesses (banks), alcohol, tobacco, gambling, adult entertainment, and other prohibited activities. They also screen out companies with excessive debt or interest income.
Like conventional ETFs, halal ETFs trade on stock exchanges and can be bought or sold throughout the trading day. They provide instant diversification across many companies while maintaining compliance with Islamic investing principles.
When you buy a single share of a halal ETF, you're essentially purchasing tiny pieces of each company held within the fund. These holdings are regularly reviewed (typically quarterly) to ensure ongoing Shariah compliance.
Looking to learn more about funds?
We discuss why you'd want to invest in a fund in a previous post; start there if you need more convincing!
Here's a complete list of halal ETFs available today:
| ETF | Title | Geography | Asset | Ex |
|---|---|---|---|---|
ISDU | iShares MSCI USA Islamic UCITS ETF | US 🇺🇸 | Equities | 🇬🇧 |
SPUS | SP Funds S&P 500 Sharia Industry Exclusions ETF | US 🇺🇸 | Equities | 🇺🇸 |
MNZL | Manzil Halal USA Broad Market ETF | US 🇺🇸 | Equities | 🇺🇸 |
HLAL | Wahed FTSE USA Shariah ETF | US 🇺🇸 | Equities | 🇺🇸 |
SPRE | SP Funds S&P Global REIT Sharia ETF | US 🇺🇸 | Equities | 🇺🇸 |
ISDW | iShares MSCI World Islamic UCITS ETF | World 🌍 | Equities | 🇬🇧 |
IGDA | Invesco Dow Jones Islamic Global Developed Markets UCITS | World 🌍 | Equities | 🇬🇧 |
WSHR | Wealthsimple Shariah World Equity Index ETF | World 🌍 | Equities | 🇨🇦 |
UMMA | Wahed Dow Jones Islamic World ETF | World 🌍 | Equities | 🇺🇸 |
SPSK | The SP Funds Dow Jones Global Sukuk ETF | World 🌍 | Sukuk | 🇺🇸 |
ISDE | iShares MSCI EM Islamic UCITS ETF | Emerging 🌍 | Equities | 🇬🇧 |
We've analyzed all available halal ETFs based on expense ratios, performance, diversification, and accessibility. Here's how they stack up in 2026:
Last updated: August 5, 2026
Our shortlist
These are the five funds most readers should compare first. Open the complete table below if you need every option.
Returns are historical and use the period shown—not a forecast. MNZL and IGDA do not yet have five full years of live history.
Compare all 11 funds Fees, historical returns, concentration and fund size
| Ticker | Region | Annual fee | Annualized return | Held in top 10 stocks | Fund size | Our take |
|---|---|---|---|---|---|---|
| SPUS | US 🇺🇸 | 0.45% | 14.97% | 56.49% | $2.8B | Proven pick |
| MNZL | US 🇺🇸 | 0.40% | 34.75%since launch | 51.5% | $22M | Promising, too new |
| HLAL | US 🇺🇸 | 0.50% | 13.73% | 53.47% | $924M | Solid runner-up |
| IGDA | World 🌍 | 0.40% | 11.78%since launch | 37.18% | $1.1B | Strong global pick |
| WSHR | World 🌍 | 0.50% | 5.13% | 9.4% | $482M | Canada-friendly |
| SPSK | World (Sukuk) 🌍 | 0.79% | -2.05% | 15.17% | $640M | Weak returns |
| ISDU | US 🇺🇸 | 0.30% | 12.14% | 52.14% | $474M | Cheap, concentrated |
| ISDW | World 🌍 | 0.30% | 9.48% | 36.65% | $1.4B | Lagging |
| UMMA | World 🌍 | 0.51% | 9.85%since launch | 50.62% | $299M | Underwhelming |
| SPRE | US (REIT) 🇺🇸 | 0.59% | -1.95% | 79.04% | $212M | Hard to justify |
| ISDE | Emerging 🌍 | 0.35% | 10.54% | 51.78% | $850M | Weak record |
Key Facts:
SPUS is our top pick for U.S. market exposure. Launched in December 2019 — just as the ground underneath the markets was starting to collapse due to COVID-19 — this fund has actually outperformed the S&P 500 since inception. That's right, a halal ETF beating the market! It's delivered 17.17% average annual returns compared to 13.67% for the broader market.
| Symbol | Name | Weight |
|---|---|---|
| NVDA | NVIDIA Corp | 13.71% |
| AAPL | Apple Inc | 11.71% |
| MSFT | Microsoft Corp | 7.54% |
While its 0.45% expense ratio is much higher than conventional ETFs (which can be as low as 0.03%), SPUS pairs its established live record with a clear Shariah compliance methodology.3 Its concentration in top holdings (56.49%) is quite high, but it's still among the better diversified halal options.
Key Facts:
Finally, a new halal ETF that does something interesting. MNZL went live in November 2025 and goes after the two things that make this whole category annoying: the fees and the screening. It tracks the Russell IdealRatings Manzil Halal USA Broad Market Custom Index (yes, a mouthful), but the idea is simple. Start with the Russell 1000, run the usual Shariah screens, then bolt on an extra American Friends Service Committee (AFSC) human-rights filter.12 That last bit is the part nobody else does. Every other fund here stops at "no conventional banks, no alcohol, no pork, no gambling, no adult content, no piles of debt." The AFSC screen goes further and drops companies its researchers tie to the Israeli occupation, apartheid, and genocide. In practice that's names you'd otherwise expect to see in a U.S. large-cap fund: Caterpillar (bulldozers used in home demolitions), HP/HPE (IT systems for the occupation), Palantir, Booking and Airbnb (listings in settlements), and the usual weapons crowd like Lockheed Martin, RTX, and Boeing.2 Whether you personally care about that screen or not, it's the first halal ETF I've seen actually try it.
| Symbol | Name | Weight |
|---|---|---|
| AAPL | Apple Inc | 14.67% |
| OTHER ASSETS AND LIABILITIES | 10.95% | |
| AVGO | Broadcom Inc | 6.51% |
Two things genuinely impress me here. First, 464 holdings, which is broad for a halal fund, where "diversified" usually means "we own 40 stocks and 35% of the money is in 10 of them." Second, the 0.40% expense ratio undercuts SPUS (0.45%) and HLAL (0.50%).13 Fees are about the only thing you control as an investor, so cheaper-and-broader is exactly the direction I want these funds to move.
Now the part that keeps it off the throne. It's been trading since late November 2025. A few months of live data tells you basically nothing.1 Its return since inception is 18.86% against 10.71% for SPY over the same stretch, and you'd be kidding yourself to read a few months of post-launch noise as proof of anything. The bigger flag: for all those 464 holdings, the top 10 still eat 51.5% of the fund, and Apple alone is a double-digit chunk. Sound familiar? It's the same big-tech tilt as everyone else, just wearing a slightly better suit.
One genuinely weird thing while you're in there: the second-biggest line in the fund isn't a company at all. "Other Assets and Liabilities" sits at ~10.95% of the portfolio, right behind Apple and ahead of Broadcom. For a brand-new ETF that's mostly cash and settlement plumbing that hasn't been deployed into stocks yet (normal for a fund still ramping up assets), but 11% is a lot of not-invested-in-anything to be carrying around. Worth watching whether that shrinks as the fund grows or just stays parked there.
So no, MNZL doesn't dethrone SPUS. Not yet. But it's the best new U.S. halal ETF by a wide margin, and probably the most promising thing to launch in this space in years, assuming it actually pulls in assets and doesn't quietly drift into being another overpriced tech index with a halal label slapped on. Ask me again in two years.
Key Facts:
HLAL comes in as our runner-up for U.S. market exposure. Launched by Wahed Invest in mid-2019, this ETF has also delivered strong returns, with a CAGR of 16.06% versus the S&P 500's 13.82% over the same period. Once again, we have an outperformer — who said ethical investing had to underperform?
| Symbol | Name | Weight |
|---|---|---|
| AAPL | Apple Inc | 12.84% |
| MSFT | Microsoft Corp | 8.15% |
| GOOGL | Alphabet Inc Class A | 6.21% |
With an expense ratio nearly identical to SPUS at 0.50% (still highway robbery compared to conventional ETFs), HLAL offers a very similar investment profile. Its top 10 holdings concentration is slightly lower at 53.47% — better than SPUS but still quite concentrated compared to conventional ETFs. The top holdings are strikingly similar to SPUS, with big tech absolutely dominating the portfolio.
Key Facts:
For investors seeking global exposure, IGDA is our top recommendation. Launched in 2022 by Invesco, this ETF tracks the Dow Jones Islamic Market Developed Markets Index, providing diversification across developed markets worldwide.
| Symbol | Name | Weight |
|---|---|---|
| NVDA | NVIDIA Corp | 7.92% |
| AAPL | Apple Inc | 6.83% |
| MSFT | Microsoft Corp | 4.27% |
What sets IGDA apart is its competitive expense ratio of 0.40% – among the better options for halal ETFs (though still ludicrously expensive compared to conventional global ETFs at 0.05-0.10%). Surprisingly, it has actually slightly outperformed the S&P 500 since inception, which is rare for global funds. With top 10 holdings at 37.18%, it's well diversified for a halal fund and actually quite reasonable compared to conventional global ETFs.
Key Facts:
For Canadian investors, WSHR offers a convenient, locally-listed option that provides global diversification. Listed on the NEO exchange, this Wealthsimple ETF targets Shariah-compliant companies in developed markets.
| Symbol | Name | Weight |
|---|---|---|
| ITRK.L | Intertek Group PLC | 1.15% |
| KO | Coca-Cola Co | 1.02% |
| CSCO | Cisco Systems Inc | 0.99% |
The standout feature of WSHR is its relatively low concentration in top holdings – at just 9.4%, it's the most diversified halal equity ETF in our rankings (finally, one that actually deserves to be called diversified!). While its performance (6.21% CAGR) lags the S&P 500, it provides Canadian investors with a straightforward way to access global halal investments without currency conversion complications. It underperforms the S&P500 but it's more diversified. Maybe worth considering if you have no other options, but I wouldn't phone home about it.
Key Facts:
SPSK stands as the only US-listed ETF providing access to the global Sukuk (Islamic bonds) market. For investors seeking fixed-income exposure in a Shariah-compliant wrapper, it's the sole option available.
| Symbol | Name | Weight |
|---|---|---|
| KSA 4.875 09.09.35 REGS | KSA Ijarah Sukuk Ltd. 4.88% | 1.83% |
| KSA 4.274 05.22.29 REGS | KSA Sukuk Limited 4.27% | 1.70% |
| QATAR 4.25 11.10.35 REGS | Global Sukuk Ventures QPJSC 4.25% | 1.68% |
However, performance has been utterly disappointing. Despite Sukuk typically being considered lower-risk investments, SPSK has actually lost money since inception, with a negative CAGR of -1.67%. Somehow, this embarrassment of a fund has managed to lose money despite the "predictable" returns Sukuk promise.
As expected, you can see that SPSK is much less volatile than SPY -- the only problem with that of course is that it's dropping in a less volatile manner. While it offers excellent diversification (top 10 holdings at just 15.17%), its high expense ratio of 0.79% further erodes returns. I feel sorry for anyone who puts money here; you're practically lighting it on fire. It's only recommended for investors specifically seeking Sukuk exposure who have no viable alternatives and enjoy watching their money slowly vanish.
The following ETFs were among the first Shariah-compliant funds available to investors. While they deserve credit for pioneering the space, their performance and characteristics make them difficult to recommend in 2026.
Key Facts:
This is the 'OG' Halal ETF — launched all the way back in 2007. There are two flavors of this ETF, the ISDU flavor (in USD) and the ISUS (in GBP). Otherwise, they're identical.
ISDU is also part of iShares's collection of halal indices that includes ISDW (targeting the developed World) and ISDE (targeting Emerging markets). That's ISDU for US, ISDW for World and ISDE for Emerging. Smart naming convention! Unfortunately, it's all downhill from there.
Feast your eyes on this chart showing how ISDU has fared against the S&P500 (which it's supposed to be based on) over the past 15 years:
A 288.47% return may sound decent, but remember that this is over 15 years! The yearly return (or CAGR) is just 7.58% — compared to the S&P500's 9.17% over the exact same time period. Talk about underwhelming.
| Symbol | Name | Weight |
|---|---|---|
| MSFT | Microsoft Corp | 12.79% |
| MU | Micron Technology Inc | 7.81% |
| TSLA | Tesla Inc | 6.88% |
Also, the Top 10 holdings in this ETF represent a whopping 52.14% (!) of the fund — which is considered stupendously concentrated4. The fact that it's domiciled in Ireland does make things better for foreign investors from a tax perspective, but that's little consolation for years of chronic under-performance.
🧐 A quick note on MSFT - the top holding in this, and many other funds. It's considered non-compliant by many Shariah screeners due to its revenue from gaming & advertising exceeding the acceptable threshold. Why the funds haven't updated their holdings to reflect this is beyond me.
Key Facts:
Now, it's time to look at ISDW. This is the 3rd of the ISD's and it targets the 'Developed world' — kind of like an ISDU, but across the globe.
Ouch! Just a 155.85% return over the full 15 years of its measly existence, vs 1,569.6% (!) for the S&P500 — which makes you wonder why on Earth anyone would consider investing in the ISD series of funds. You get poor performance and low liquidity: 2 reasons NOT to!
| Symbol | Name | Weight |
|---|---|---|
| MSFT | Microsoft Corp | 10.45% |
| MU | Micron Technology Inc | 5.00% |
| TSLA | Tesla Inc | 4.40% |
Not much to say — at 36.65%, it's actually quite well diversified for a halal fund. With the recent fee reduction to 0.30%, it's become much more cost-competitive, but the performance remains disappointing — stay far, far away!
Key Facts:
This fund was born along with its brothers, ISDU and ISDW, on 7 Dec, 2007. It focuses on 'Emerging Markets', the politically correct term for countries that are 'less developed'. This principally includes all of the countries that aren't US/Europe — that's mainly China, India, Brazil and the Middle East.
The largest companies in these regions tend to be commodity-based, so they rely on extracting and processing natural resources. This means they're more exposed to fluctuations in the price of whatever the underlying commodities are (e.g. gold, aluminum, copper, etc).
Brace yourselves as we observe the performance of this abomination since inception:
This is definitely the black sheep of the family — in the 15 years of its existence, it's actually lost money -- to the tune of 2.09%/year! 🫢
For reference, the market gained 9.11%/year during that same period!
What sane person would put any money in this ETF? Even with the recent fee reduction to 0.35%, the performance is still abysmal!
| Symbol | Name | Weight |
|---|---|---|
| 000660.KS | SK Hynix Inc | 19.91% |
| 005930.KS | Samsung Electronics Co Ltd | 14.52% |
| 2454.TW | MediaTek Inc | 4.07% |
The Top 10 holdings represent 51.78% of the index … which is actually quite well diversified for a halal fund! Too bad the diversification doesn't help with the terrible performance. I really am starting to wonder why iShares even bothers anymore.
What an abomination of an ETF! 🤮
Key Facts:
This ETF was also started by Wahed, the same company behind HLAL. Launched on January 6, 2022 this fund aims to provide halal exposure to global stocks — similar to ISDW.
Here's how it's performed since inception:
(Note: We've added ISDW on the chart to compare performance since they share similar goals)
Wow.
Somehow, it's managed to perform substantially worse than both the SPY and ISDW, and by quite a margin. The yearly return for UMMA is 9.85% vs 10.78% for SPY over the same time period.
| Symbol | Name | Weight |
|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing Co Ltd ADR | 10.63% |
| 005930.KS | Samsung Electronics Co Ltd | 8.74% |
| 000660.KS | SK Hynix Inc | 8.68% |
The Top 10 is also above the average concentration for the SPY, coming in at 50.62%. All that concentration and still can't perform — not exactly a winning combination.
Key Facts:
This ETF was started by Shariah Portfolio, the same company behind SPUS. Launched on December 29, 2020 this fund aims to provide halal exposure to the Real Estate sector. Here's how it's performed since inception:
Ouch! It's underperformed the S&P500 by a mile since it started — with a 1.09% yearly return to the market's 13.26% over this period.
It'll shock you to know that the Top 10 holdings in this bad boy represent a whopping 79.04% (!). With such a high concentration, you'd need a legitimate reason to invest in the fund (and pay up the 0.59% expense ratio) instead of just buying the holdings yourself:
| Symbol | Name | Weight |
|---|---|---|
| GMG.AX | Goodman Group | 12.56% |
| EQIX | Equinix Inc | 12.31% |
| PLD | Prologis Inc | 12.06% |
But why bother buying the holdings at all?
For that miserable performance, you're better off stashing your money under your mattress and losing it to inflation instead. You'll still lose money, just slower.
How do halal ETFs actually perform compared to the broader market? Let's examine the performance of our top-ranked funds against the S&P 500 index.
SPUS and HLAL have notably outperformed the S&P 500 since their launch in 2019. SPUS has shown 17.17% annual returns vs. 13.67% for the S&P 500, while HLAL has returned 16.06% annually. MNZL's early chart is included too, but it should be read as a launch-period snapshot, not a full-cycle track record.
This outperformance can be attributed primarily to:
Global halal ETFs show a mixed picture, with some surprising outperformers. IGDA has been the strongest performer in this category, with 11.78% annual returns since inception, compared to the S&P 500's 10.19% over the same period — actually beating the market!
This outperformance is quite remarkable for a global fund, especially considering the typical dominance of U.S. markets (particularly tech stocks) in recent years. IGDA's success shows that well-constructed global halal portfolios can compete with U.S.-focused investments, offering both diversification and competitive returns.
The iShares suite of Islamic ETFs (ISDU, ISDW, and ISDE) have significantly underperformed the market over their longer history. Just look at that chart! It's like they're not even trying to keep up. Most concerning is ISDE (emerging markets), which has actually lost money over its 15+ year existence with a CAGR of 2.09%, compared to the S&P 500's 9.11% gains over the same period. If you had invested $10,000 in ISDE at launch, you'd now have... less than $10,000. Meanwhile, that same amount in an S&P 500 fund would have multiplied several times over. Ouch.
Accessing halal ETFs can be challenging depending on your location. Here's what investors need to know in different countries:
Canadian investors have multiple options for accessing halal ETFs:
The TFSA advantage is substantial here — you can at least keep all your halal investment gains tax-free, which helps offset those hefty expense ratios somewhat.
UK investors face more restrictions but still have viable pathways:
UK investors get to experience the "joy" of both currency risk AND high expense ratios. Lucky you!
Investors in India and Gulf Cooperation Council countries typically face the most restrictions:
For investors in any region facing difficulty accessing these ETFs, alternative approaches may be more practical.
Let's be brutally honest about the state of halal ETFs in 2026:
High Fees - You're still paying 10-15x more than conventional ETFs:
Dangerous Concentration - Most halal ETFs have 40-70% of their holdings in just 10 stocks:
Limited Options - With just 11 halal ETFs globally (compared to 10,000+ conventional ETFs):
For most investors, the best options are:
Amal takes a different approach from buying a halal ETF: it starts with an established fund, removes holdings that fail its Shariah and values screens, and continues monitoring the portfolio after you invest. Your money remains in your brokerage account, and Standard costs $249 once. That is a different product with different trade-offs—not a promise of better returns.
No, the S&P 500 index itself is not halal. It contains many companies that violate Islamic investment principles, including conventional banks (which deal with interest), alcohol producers, gambling companies, and businesses with excessive debt ratios. About as halal as a bacon sandwich, really. Halal ETFs like SPUS, MNZL, and HLAL apply Shariah screening filters to exclude non-compliant companies from broad U.S. equity universes, giving you a smaller, significantly more concentrated, and considerably more expensive version of the market. Progress!
Halal ETFs trade on exchanges throughout the day like stocks, while Islamic mutual funds are priced once daily. ETFs typically have lower minimum investments and greater tax efficiency. In the U.S., there are very few Islamic mutual funds available to retail investors (count yourself lucky, maybe?), making ETFs the more accessible option for most Muslims. Both product types apply similar Shariah screening methodologies and charge similarly eye-watering fees.
Halal ETFs employ a two-step screening process:
Different funds may use slightly different thresholds, but these standards are broadly consistent across halal ETFs. By the time all these filters are applied, you're left with a much smaller universe dominated by tech companies and a few healthcare firms. Diversification? Who needs it!
Standard S&P 500 ETFs like SPY, VOO, or IVV are generally not considered Shariah-compliant because they include companies involved in prohibited activities and those with excessive financial leverage. Muslims seeking index-based investments should use specifically designed halal ETFs like SPUS, MNZL, or HLAL, which filter broad U.S. equity exposure for Shariah compliance. MNZL is based on the Russell 1000 rather than the S&P 500, so it starts from a broader U.S. universe, but the final portfolio is still much smaller than a conventional market ETF.
SPUS is the closest direct answer. It seeks to track the S&P 500 Shariah Industry Exclusions Index, which begins with Shariah-compliant S&P 500 constituents and applies additional industry exclusions.3 It does not hold every S&P 500 company, so its returns and concentration can differ materially from SPY, VOO or IVV. HLAL follows a FTSE Shariah index, while MNZL starts from a Russell 1000-based index.
For investors who specifically need a Canadian-listed halal equity ETF, WSHR is the clearest starting point in this comparison. It trades in Canada and tracks the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index. “Best” still depends on your brokerage, currency, taxes, time horizon and desired exposure, so compare its current prospectus and holdings before buying.
Not necessarily. While halal ETFs have higher expense ratios (sometimes comically higher), their performance can sometimes outpace conventional counterparts. For example, SPUS and HLAL have outperformed the S&P 500 since their inception. MNZL is too new for a fair verdict. Shariah screening tends to favor companies with lower debt and stronger balance sheets, which can be advantageous during economic downturns. However, they may underperform during periods when financial stocks rally significantly.
The real issue isn't performance — it's that you're paying premium prices for what should be basic investment products. Think of it like paying $15 for a bottle of water in the desert. Is it refreshing? Sure. Should it cost that much? Absolutely not.
MNZL's statutory prospectus lists a 0.40% expense ratio, states that the fund seeks to track the Russell IdealRatings Manzil Halal USA Broad Market Custom Index, and describes the index as starting from the Russell 1000 before applying Shariah screening and the additional AFSC screen. Source ↩ ↩2 ↩3 ↩4 ↩5
Manzil's ETF materials describe the AFSC filter as an additional ethical screen intended to remove companies with demonstrated links to apartheid, ethnic cleansing, genocide, or other grave human-rights violations. Source ↩ ↩2 ↩3 ↩4
SP Funds lists SPUS's current expense ratio as 0.45% and states that it tracks approximately 200 Shariah-compliant stocks from the S&P 500 through the S&P 500 Shariah Industry Exclusions Index. Source ↩ ↩2 ↩3 ↩4 ↩5
For reference, the S&P500's Top 10 (which many complain about being too concentrated) represent just ~25% ↩