Halal ETFs give investors the benefits of diversified index investing without compromising on Shariah principles. Here are the best options available in 2026 — reviewed for performance, fees, and GCC accessibility.
What is a Halal ETF?
An Exchange-Traded Fund (ETF) is a basket of securities typically stocks that trades on an exchange like a single share. A halal ETF is an ETF that has been screened by a certified Shariah board to ensure all of its holdings meet Islamic finance criteria: no conventional banks, no alcohol companies, no gambling, no tobacco, and all holdings must pass debt-ratio and prohibited-income financial screens under AAOIFI Standard 21.
For GCC investors who want broad market exposure without the time-intensive work of individually screening hundreds of stocks, halal ETFs are the most efficient solution. You buy one fund and instantly own a diversified, Shariah-screened portfolio.
Why the S&P 500 Itself Is Not Halal
A common misconception among new investors is that a standard S&P 500 ETF (like SPY or VOO) is suitable for investors. It is not. The S&P 500 includes conventional banks such as JPMorgan Chase and Bank of America which derive their core income from interest (riba). It also includes insurance companies, alcohol and beverage producers, and companies with excessive debt ratios. Investing in a standard S&P 500 ETF would violate Islamic finance principles.
Halal ETFs solve this by applying Shariah filters to the same universe of large-cap US companies, removing non-compliant names and in some cases slightly reweighting holdings to reflect the screened composition.
Top Halal ETFs for Saudi Investors in 2026
1. SPUS — SP Funds S&P 500 Sharia Industry Exclusions ETF
SPUS is the gold standard recommendation for Saudi and GCC investors seeking US large-cap halal exposure. Launched in December 2019 and listed on NYSE Arca, SPUS tracks a Shariah-screened version of the S&P 500, excluding non-compliant companies. As of early 2026, its top holdings include Apple, NVIDIA, Microsoft, Amazon, and Meta, five of the most dominant technology companies in the world.
Performance: SPUS has delivered a compound annual growth rate of approximately 16.91% since inception actually outperforming the standard S&P 500 over the same period. This outperformance is partly attributed to the exclusion of underperforming traditional financial stocks and the resulting concentration in high-growth technology.
Expense ratio: 0.45% annually ($45 per $10,000 invested per year). Turnover rate: 5% indicating a stable, low-churn portfolio. SPUS is available through Raseed and several international brokers.
2. HLAL — Wahed FTSE USA Sharia ETF
HLAL is managed by Wahed, a fintech company focused specifically on Islamic investing. It tracks the FTSE USA Shariah Index and offers broad exposure to US equities with Shariah screening. As of early 2026, its portfolio includes approximately 211 stocks with a strong weighting toward technology (43%), healthcare (13%), and communication services (12%). Top holdings include Apple, Microsoft, Meta, Alphabet, and Tesla.
HLAL's expense ratio is 0.50%, slightly higher than SPUS, with a turnover rate of 29%, meaning the portfolio is rebalanced more actively as holdings move in and out of compliance. For investors who want a Wahed-certified option with slightly broader diversification than SPUS, HLAL is a strong alternative.
3. SPTE — SP Funds S&P Global Technology ETF
For investors who want concentrated technology sector exposure within a Shariah-compliant framework, SPTE tracks the S&P Global 1200 Shariah Information Technology Capped Index. Approximately 98.9% of the fund is invested in the technology sector. Top holdings include Taiwan Semiconductor Manufacturing (TSMC), NVIDIA, Microsoft, Apple, SAP, Broadcom, and Shopify.
SPTE is ideal for investors who believe technology will continue to outperform the broad market over the next decade driven by AI, cloud computing, and semiconductor innovation and want a concentrated, Shariah-screened vehicle to express that view.
4. IGDA — iShares MSCI World Islamic UCITS ETF
For investors who want global developed-market exposure rather than US-only, IGDA tracks the MSCI World Islamic Index and is domiciled in Ireland, making it UCITS-compliant. As of mid-2024, it had grown to approximately £598 million in assets. The fund is 77.93% weighted toward the US, with smaller allocations to Europe, Japan, and the UK. Its top five holdings Microsoft, Apple, NVIDIA, Amazon, and Meta account for approximately 28.19% of the portfolio.
IGDA's expense ratio is 0.40%, the most cost-effective option among the ETFs reviewed here. For Saudi investors who can access UCITS-listed funds through their platform, IGDA offers excellent global diversification at a competitive fee.
5. MNZL — Manzil Russell Halal USA Broad Market ETF
Launched in November 2025 and listed on the Nasdaq, MNZL is the newest entrant to the US halal ETF space. It offers broad exposure to large- and mid-cap US equities through a Shariah-compliant framework that extends beyond traditional AAOIFI screening to incorporate additional values-based considerations. MNZL is particularly interesting for investors who want broader market coverage than the large-cap-only universe of SPUS and HLAL.
Halal ETF vs Individual Halal Stocks: Which is Better?
This depends entirely on your investment style, time availability, and preference for control:
Halal ETFs are better for passive investors who want broad diversification with minimal ongoing management. One purchase gives you exposure to dozens or hundreds of Shariah-compliant companies simultaneously.
Individual halal stocks are better for active investors who have specific convictions about particular companies (such as NVIDIA's AI dominance or Eli Lilly's GLP-1 pipeline) and want to concentrate their portfolio accordingly.
Many investors use both: a core holding in a halal ETF like SPUS for diversification, complemented by individual stock positions in highest-conviction names.
Important Considerations Before Buying Halal ETFs
Expense ratios: Halal ETFs charge between 0.40% and 0.50% annually approximately 10 to 15 times higher than a standard S&P 500 ETF like VOO (0.03%). For long-term investors, this difference compounds significantly. SPUS's outperformance has more than offset its fee premium historically, but this is not guaranteed to continue.
Concentration risk: Most halal ETFs have 40-70% of holdings in just 10 stocks. A significant drop in any major technology company could have an outsized impact on performance.
Regular compliance reviews: ETF holdings are typically reviewed quarterly. A company currently included in a halal ETF can become non-compliant at the next review if its financial ratios change. Check your ETF provider's methodology page for details.
Currency: All US-listed halal ETFs are denominated in USD. For Saudi investors, this is not a currency risk due to the SAR/USD peg.
Explore Learn Page to know more about Stocks & ETFs investment on Raseed Invest.
How to Buy Halal ETFs from Saudi Arabia
SPUS and HLAL are available through Raseed. Open your account, search for the ETF ticker symbol, and invest from as little as $1 using fractional shares. Trading fees: from $0.50, capped at $3 per transaction. Explore Pricing page for better pricing understanding
Building a regular monthly contribution into a halal ETF through Raseed, even a modest $50 or $100 per month, is one of the most straightforward paths to long-term, Shariah-compliant wealth building available to Saudi investors today.
Disclaimer: This article is for informational and educational purposes only. ETF performance data is based on historical results and is not indicative of future performance. All investments carry risk. Always verify Shariah compliance status with a certified screening service before investing.