What does the Sharia compliance of HLAL and UMMA mean for investors?

Both funds apply Islamic finance principles, excluding businesses involved in forbidden activities such as alcohol or gambling. HLAL tracks a US-based index, while UMMA covers global equities. Compliance screening means their holdings differ from conventional ETFs, potentially affecting performance during periods when excluded sectors outperform. Investors should understand that these screens may limit participation in certain market segments compared to standard broad-market funds.

How do the inception dates of HLAL and UMMA affect comparison?

HLAL launched in July 2019, while UMMA began in January 2022. This three-and-a-half-year difference means HLAL has a longer track record across various market cycles, including the pre-pandemic era and the 2022 downturn. UMMA's shorter history reflects recent global conditions but offers less data for long-term comparison. Investors should note that past performance periods are not identical, making direct return comparisons complex.

How do the expense ratios of HLAL and UMMA compare?

HLAL charges 0.50% annually, while UMMA charges 0.65%. The 0.15 percentage point difference means UMMA is more expensive. On a £10,000 investment, this equates to £15 extra annually for UMMA. Over time, fees compound, so lower costs generally preserve more returns. However, fees are one factor among many; investors should consider them alongside holdings, tracking objectives, and diversification benefits when evaluating each fund.

What do the dividend yields indicate about income generation?

HLAL reports a 0.43% dividend yield, while UMMA offers 0.96%. UMMA provides nearly double the income distribution. Dividend yields reflect annual payouts relative to price. Both yields are modest compared to many conventional equity funds. Investors should note that ETF dividends are not guaranteed and can fluctuate. Higher yield may appeal to those seeking modest income, but total return potential remains more significant for growth-oriented investments.

Which investing goals do HLAL and UMMA typically align with?

HLAL's US large-cap focus suits investors seeking domestic Sharia-compliant growth exposure. UMMA's foreign large growth orientation serves those wanting international diversification within Islamic principles. Neither fund is designed for aggressive income or small-cap speculation. Goal alignment depends on whether an investor prioritises US market participation or global geographic spread while maintaining Sharia compliance. Both support equity growth but through distinct market lenses.

How do the top holdings of HLAL and UMMA differ in concentration?

HLAL's top holding, NVDA, represents 12.59%, with AAPL at 12.23%, indicating significant concentration. UMMA's largest disclosed holding, TSM, accounts for 5.49%, suggesting lower individual stock concentration. However, UMMA's full top-10 data is incomplete, limiting precise comparison. Higher concentration in HLAL means performance heavily depends on a few US tech stocks, while UMMA appears more diversified based on available information.

Do HLAL and UMMA share any top-10 holdings?

No, HLAL and UMMA have zero shared holdings among their top-10 positions. HLAL features US technology and healthcare firms like NVDA, AAPL, and LLY. UMMA's disclosed top holding is TSM, representing international semiconductor exposure. This lack of overlap means the funds provide genuinely distinct geographic and sectoral exposures. Combining both could reduce single-market concentration risk for investors seeking comprehensive Sharia-compliant equity coverage.

How does the net asset size affect liquidity for each fund?

HLAL holds approximately $982 million in net assets, supporting robust liquidity and tighter bid-ask spreads. UMMA manages $292 million, making it smaller and potentially subject to wider spreads during volatile periods. Larger asset bases generally facilitate easier trading. Investors should consider this when planning entry or exit sizes, as smaller funds may experience more trading friction despite functioning normally in regular market conditions.

What should investors know about missing issuer and index data?

Both HLAL and UMMA currently show 'not available' for their specific index names and issuer verification details in the provided data. Investors should consult official fund documents for methodology transparency. Without confirmed index details, tracking accuracy cannot be independently assessed from this page alone. Always verify fund prospectuses and daily holdings via the provider's official channels before making comparisons based solely on summary metrics.

HLAL vs UMMA

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

Compare the Wahed FTSE USA Shariah ETF (HLAL) and the Wahed Dow Jones Islamic World ETF (UMMA). This page examines their fees, holdings, dividend yields and how each fund tracks its respective market. HLAL focuses on US equities while UMMA covers global markets, with no shared top-10 holdings. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

HLAL

Metric

UMMA

0.50%

Expense Ratio

0.65%

0.43%

Dividend Yield

0.96%

$982.08M

Net Assets

$291.74M

213

Holdings

100

Jul 16, 2019

Inception Date

Jan 7, 2022

–

Index Tracked

–

Large Blend

Fund Category

Foreign Large Growth

HLAL costs about $15.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

HLAL

Pros

HLAL offers substantial size with approximately $982 million in net assets supporting liquidity.
Its 0.50% expense ratio provides a competitive option for Sharia-compliant large-cap exposure.
The fund maintains a focused US large blend strategy, aligning with domestic market performance.

Considerations

Significant concentration in top holdings like NVDA and AAPL increases sector specific risk.
The dividend yield is low at 0.43%, offering minimal income for conservative investors.
Data regarding the issuer and index methodology are currently not available for verification.

UMMA

Pros

UMMA provides diversified foreign large growth exposure distinct from US-only Islamic portfolios.
A dividend yield of 0.96% offers slightly higher income potential compared to US alternatives.
Inception in early 2022 allows the fund to navigate recent global market conditions.

Considerations

The 0.65% expense ratio is higher than many conventional global equity ETFs.
Net assets of $292 million indicate a smaller scale with potentially lower liquidity.
Top holdings data is sparse with TSM listed at 5.49%, limiting full visibility.

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About HLAL and UMMA

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.

UMMA (UMMA)

Wahed Dow Jones Islamic World ETF (UMMA) is a passively managed exchange-traded fund that aims to track the Dow Jones Islamic Market World Index, offering diversified exposure to global equities that meet Shariah principles. It seeks to exclude businesses involved in interest-bearing activities, alcohol, gambling, and other sectors inconsistent with Islamic investing. As an ETF, UMMA trades like a stock on an exchange, providing intraday liquidity and potentially lower costs versus actively managed alternatives. Investors should be aware that performance will follow the underlying index and is not guaranteed; values can rise or fall and currency movements may affect returns. Market-cap data may not be applicable to the fund itself. This summary is educational only and not personal financial advice — suitability depends on individual circumstances, investment horizon and attitude to risk.

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HLAL vs UMMA

Fund Snapshot