What does a lower expense ratio mean for my returns?

HLAL and SPUS have expense ratios of 0.50% and 0.45% respectively. A lower expense ratio means you pay less annually for fund management, which directly affects your net return. For example, if a fund returns 10% per annum, SPUS's fee is 0.45%, so your net return is 9.55%, whereas HLAL's net return is 9.5%. Over time, this 0.05% difference can add up through compounding.

What is an expense ratio in ETFs?

An expense ratio represents the annual fee charged by an ETF to manage your investment. It's deducted from the fund's assets, not billed directly to you. For instance, HLAL has an expense ratio of 0.50% and SPUS has 0.45%. This means if you invested $1,000, the fees would be $5 for HLAL and $4.50 for SPUS annually. Lower expense ratios can enhance your overall returns by retaining more profit.

Why do different ETFs have varying expense ratios?

ETFs have different expense ratios due to variations in management styles, fund complexity, and asset classes. For example, HLAL has an expense ratio of 0.50%, whereas SPUS has 0.45%. These differences may reflect how actively the fund is managed or how complex its index tracking is. Some funds might include additional services such as Shariah compliance screening, influencing costs.

How does dividend yield differ between these two ETFs?

HLAL and SPUS have dividend yields of 0.43% and 0.51% respectively. A higher dividend yield implies that SPUS pays out more in dividends relative to its share price. This can be beneficial for investors focusing on income, while the total return should also consider capital appreciation.

How do dividend distributions work in ETFs?

Dividend distributions occur when ETFs, such as HLAL and SPUS, pay out a portion of the income earned from their underlying holdings. These payouts are based on the dividends received by companies in the portfolio. For example, HLAL offers a dividend yield of 0.43%, while SPUS provides a yield of 0.51%. Investors typically receive these distributions quarterly.

What do top holdings indicate in an ETF?

Top holdings represent the largest positions in an ETF's portfolio, indicating the fund's focus areas. For instance, both HLAL and SPUS include NVDA, AAPL, and MSFT as top holdings. This overlap suggests similar exposures to major technology companies, although the weightings and additional holdings differ, reflecting each fund's unique investment strategy and sector allocation.

How does sector allocation affect ETF performance?

Sector allocation influences an ETF's risk and return profile. Although sector weights for HLAL and SPUS are not available, their top holdings suggest tech-heavy exposure, with companies like NVDA and AAPL leading. This allocation may result in higher growth potential but also increased volatility, impacting performance compared to funds with more diversified sector weightings.

What is the significance of inception date in ETF comparisons?

The inception date shows how long an ETF has been operating, offering a measure of its historical track record. HLAL was launched on July 16, 2019, while SPUS started on December 18, 2019. A longer inception date, like HLAL's, provides more historical performance data, potentially offering better insights into how the fund has handled market cycles.

What does fund category tell us about risk?

The fund category indicates the investment style and associated risk level. HLAL is categorised as Large Blend, suggesting a balanced approach across large-cap stocks. SPUS is categorised as Large Growth, which may indicate a focus on companies with higher growth potential but potentially increased volatility. Understanding these categories helps gauge the risk-return profile of each ETF.

How can I start comparing ETFs for investment?

Begin by examining key metrics such as expense ratios, dividend yields, and inception dates. For example, HLAL has an expense ratio of 0.50% and a dividend yield of 0.43%, whereas SPUS has 0.45% and 0.51% respectively. These details provide a foundation for assessing cost-effectiveness and income potential. This comparison is for educational purposes and not financial advice.

HLAL vs SPUS

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare Wahed FTSE USA Shariah ETF and SP US S&P 500 Sharia Exclusions ETF. Review their expenses of 0.50% and 0.45%, yields, top holdings, and how each tracks its respective market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

HLAL

Metric

SPUS

0.50%

Expense Ratio

0.45%

0.43%

Dividend Yield

0.51%

$982.08M

Net Assets

$3.20B

213

Holdings

221

Jul 16, 2019

Inception Date

Dec 18, 2019

–

Index Tracked

–

Large Blend

Fund Category

Large Growth

SPUS costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	HLAL	SPUS
NVDANVIDIA Corporation	12.59%	13.76%
AAPLApple Inc.	12.23%	12.82%
MSFTMicrosoft Corporation	9.28%	9.58%
GOOGLAlphabet Inc.	5.08%	5.27%
AVGOBroadcom Inc.	4.05%	4.24%
MUMicron Technology, Inc.	2.76%	2.84%
TSLATesla, Inc.	2.68%	2.66%
LLYEli Lilly and Company	2.29%	2.35%

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Investment Analysis

HLAL

Pros

HLAL has a solid net asset value of $982 million, indicating moderate investor interest and liquidity.
The fund's inception date of July 16, 2019, provides a track record spanning over five years.
HLAL holds diversified shares from large-cap companies, with NVDA, AAPL, and MSFT as top holdings.

Considerations

HLAL's expense ratio of 0.50% is higher than SPUS, making it a costlier investment option.
The dividend yield of 0.43% is lower compared to SPUS, which might impact income-focused investors.
HLAL's issuer and index tracked details are not available, reducing transparency about the fund's structure.

SPUS

Pros

SPUS has a significantly larger net asset value of $3.2 billion, indicating higher liquidity and popularity.
The fund's expense ratio of 0.45% is lower than HLAL, making it a more cost-efficient choice.
SPUS has a slightly higher dividend yield of 0.51% compared to HLAL, which might attract income-focused investors.

Considerations

SPUS's inception date of December 18, 2019, is later than HLAL, providing a shorter track record.
The fund's category is listed as Large Growth, which might indicate higher risk compared to HLAL's Large Blend category.
SPUS's issuer and index tracked details are also not available, reducing transparency about the fund's methodology.

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About HLAL and SPUS

HLAL (HLAL)

Wahed FTSE USA Shariah ETF (HLAL) is an exchange-traded fund that aims to track the FTSE USA Shariah Index, offering investors US equity exposure aligned with Shariah principles. The fund screens out companies involved in alcohol, gambling, conventional financial services, and other activities deemed non-compliant, as well as those with high leverage or non-compliant revenue mixes. It provides a passive, diversified exposure to US large- and mid-cap stocks while following ethical constraints. Investors should note this means the opportunity set is narrower than a broad US index and returns can differ from mainstream benchmarks. Like all ETFs, HLAL may experience tracking error, market volatility, and currency effects for non‑USD investors. Fees, liquidity and the specifics of the Shariah screening process are important to review before investing. This information is educational and not personalised advice; values can fall as well as rise and past performance is no guarantee of future results.

SPUS (SPUS)

The SP US S&P 500 Sharia Exclusions ETF offers investors exposure to large-cap US companies that meet specific Sharia compliance criteria. By filtering out businesses involved in prohibited activities such as alcohol, gambling, and conventional financial services, this fund aims to align with ethical investing principles while tracking the performance of eligible large growth companies. With a net asset value of approximately USD 3.20 billion and a moderate expense ratio of 0.45%, it provides a accessible entry point for those interested in faith-based or ethical equity strategies. The fund currently holds 221 distinct stocks, offering diversification within its specific screening framework. While it provides a 0.51% dividend yield, investors should note that capital values can fluctuate significantly. As an ETF launched in late 2019, it has established a track record within the ethical investing landscape, though past performance does not guarantee future results. Potential investors should consider their own values and risk tolerance carefully.

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HLAL vs SPUS

Fund Snapshot