12 Halal ETFs – Shariah-Compliant ETF Investments (January 2026)
We track ETFs that screen holdings using AAOIFI, DJIM, and MSCI Islamic Index standards. All 12 ETFs below invest only in Shariah-compliant assets.
Also see: Halal Stocks (64) | Halal Crypto (18) | Gold ETFs (8)
Updated monthly • AAOIFI compliant • No haram exposure
Why Choose Halal ETFs?
- Instant diversification – Own hundreds of halal stocks in one purchase
- Professional screening – Fund managers handle quarterly compliance checks
- Low cost – Expense ratios typically 0.50-0.85%
- Liquidity – Trade like stocks on major exchanges
- Automatic purification – Some funds donate impure income to charity
🇺🇸 US Shariah Equity ETFs (4)
- HLAL – Wahed FTSE USA Shariah ETF
Large & mid-cap US Shariah stocks • Expense: 0.50% • AUM: ~$400M - SPUS – SP Funds S&P 500 Sharia Industry Exclusions ETF
S&P 500 Shariah Index • Expense: 0.45% • AUM: ~$700M - UMMA – Wahed Dow Jones Islamic World ETF
Global developed markets Shariah • Expense: 0.65% • AUM: ~$50M - SPRE – SP Funds S&P Global REIT Sharia ETF
Shariah-compliant REITs globally • Expense: 0.55% • AUM: ~$20M
🌍 International Islamic ETFs (3)
- ISWD – iShares MSCI World Islamic UCITS ETF
Developed world Shariah • Expense: 0.60% • Listed: London - ISDE – iShares MSCI Emerging Markets Islamic UCITS ETF
Emerging markets Shariah • Expense: 0.85% • Listed: London - HSBC Islamic Global Equity Index Fund
Global Shariah equity • Expense: 0.38% • Available via brokers
📜 Sukuk / Islamic Bond ETFs (2)
- SPSK – SP Funds Dow Jones Global Sukuk ETF
Global sukuk bonds • Expense: 0.55% • AUM: ~$50M - SUKUK – Franklin Global Sukuk ETF
Investment-grade sukuk • Expense: 0.45% • Listed: Various
What is a Sukuk? Islamic bonds that represent ownership in tangible assets rather than debt. Returns come from profit-sharing, not interest.
🥇 Commodity & Gold ETFs (3)
- GLD – SPDR Gold Shares
Physical gold backed • Expense: 0.40% • AUM: ~$55B
⚠️ Generally halal – represents physical gold ownership - IAU – iShares Gold Trust
Physical gold backed • Expense: 0.25% • AUM: ~$25B
⚠️ Generally halal – lower expense ratio alternative - SGOL – abrdn Physical Gold Shares ETF
Physical gold in Switzerland • Expense: 0.17% • AUM: ~$2B
⚠️ Generally halal – stored in Zurich vaults
Note: Physical gold ETFs are generally considered halal as they represent actual gold ownership. See our gold trading guide for details.
ETF Comparison Table
| ETF | Focus | Expense | Screening |
|---|---|---|---|
| HLAL | US Large/Mid Cap | 0.50% | AAOIFI |
| SPUS | S&P 500 Shariah | 0.45% | DJIM |
| UMMA | Global Developed | 0.65% | DJIM |
| SPSK | Global Sukuk | 0.55% | DJIM |
| GLD | Physical Gold | 0.40% | N/A* |
*Gold ETFs don't require equity screening – they hold physical gold
Common Questions
What is a halal ETF?
A halal ETF is an exchange-traded fund that only invests in Shariah-compliant assets. These ETFs exclude companies involved in alcohol, gambling, pork, conventional finance (banks, insurance), and weapons. They also screen for financial ratios (debt <30%, interest income <5%) according to AAOIFI or similar standards.
Is SPUS better than HLAL?
Both are excellent choices. SPUS has a lower expense ratio (0.45% vs 0.50%) and tracks the S&P 500 Shariah Index.HLAL uses AAOIFI screening which some scholars consider more stringent. SPUS has higher AUM and liquidity. Many investors hold both for diversification.
Do halal ETFs purify income?
Some halal ETFs (like HLAL) donate any inadvertent non-compliant income to charity automatically. Check the fund's prospectus for their purification policy. For others, you may need to purify dividends yourself (~1-3% typically).
Can I buy halal ETFs in my IRA or 401(k)?
Yes, US-listed halal ETFs like HLAL, SPUS, and SPSK can be held in retirement accounts. Check with your plan administrator for available options. Self-directed IRAs offer the most flexibility.
Total: 12 ETFs | Last updated: January 28, 2026