Best Halal ETFs in the US 2026: Shariah Funds Ranked by Fee + Screening

The verdict: SPUS is the best US halal ETF for 2026

If you are a US Muslim investor and you want one halal ETF for the equity core of a brokerage account or Roth IRA, buy SPUS — the SP Funds S&P 500 Sharia Industry Exclusions ETF. It charges 0.45%, the lowest expense ratio of any US-listed Shariah ETF, and holds roughly $2.1 billion in assets, the largest base in the category. On a $50,000 position, that fee is $225 a year. The next-cheapest broad halal equity ETF, HLAL, costs 0.50% — an extra $25 a year on the same $50,000.

That is the short answer. The longer answer is that a serious halal portfolio is not one fund — it is three: a US large-cap stock fund (SPUS), a sukuk fund that replaces interest-paying bonds (SPSK), and optionally a halal REIT fund for real-estate income (SPRE). Below is the full US halal ETF universe ranked by the criterion that actually matters: expense ratio first, then screening rigor, then assets under management as a proxy for liquidity and staying power.

The ranking: US halal ETFs by fee, screen, and assets

Every expense ratio below is issuer-verified. Holdings change, so the screening basis is the fund’s stated index methodology as of June 2026 — verify current holdings on Musaffa or Zoya before you buy a specific name.

GLDM sits outside the ranking because gold is a different asset class — but for halal investors it is the cleanest inflation hedge available, and at 0.10% it is the cheapest physical-gold ETF (IAU is 0.25%, GLD is 0.40%). Allocated, spot-settled physical gold is permissible under AAOIFI Standard 57.

Why SPUS takes #1, and where HLAL closes the gap

SPUS and HLAL are the two real choices for the US-stock core. Here is the case for SPUS, stated plainly:

• Lower fee. 0.45% vs 0.50%. Over 20 years on a $100,000 position growing at 8%, that 0.05% gap compounds to roughly $1,400 of avoided fees — small, but free money for choosing the cheaper twin.
• More assets. ~$2.1 billion vs ~$900 million. Larger AUM means tighter bid-ask spreads, less risk of closure, and a deeper market on the days you want to trade.
• Tighter index. SPUS screens the S&P 500 itself — familiar large-cap US exposure. HLAL tracks FTSE Shariah USA with ~211 holdings, a broader net that reaches further down the cap spectrum.

Where HLAL closes the gap: its broader ~211-name portfolio is more diversified than SPUS’s tighter S&P 500 subset, and some investors prefer FTSE’s methodology (screened by Yasaar Ltd) over S&P’s. Both apply a debt screen in the ~30–33% range. If diversification breadth matters more to you than five basis points of fee, HLAL is a defensible pick — but for most people, cheaper plus larger wins, and that is SPUS.

What the AAOIFI screen actually checks

“Halal ETF” is not a marketing label — it is a two-stage filter applied to every holding. Under AAOIFI Standard 21 (the strict benchmark), a company passes only if:

1. Business activity (Stage 1): no more than 5% of revenue comes from conventional finance and insurance, alcohol, tobacco, gambling, pork, weapons and defense, or adult entertainment. This is why halal funds exclude the big banks, insurers, and casino operators outright.
2. Interest-bearing debt: at or below 30% of market cap (AAOIFI). S&P and MSCI/FTSE indexes use a slightly looser 33% / 33.33% threshold.
3. Cash plus interest-bearing securities: at or below 30% of market cap (AAOIFI; 33% under S&P/MSCI).
4. Impermissible (interest) income: under 5% of total income.

The debt screen is the one that disqualifies most companies a casual investor would assume are fine. A profitable, well-run firm carrying heavy interest-bearing leverage fails — not because of what it does, but because of how it is financed. That is why a halal S&P 500 fund (SPUS) holds a meaningfully different roster than a plain S&P 500 fund (VOO): the financial sector is largely gone, and high-debt names are screened out.

What most people miss: purification, sukuk, and the “bond” gap

Two things trip up newcomers to halal investing, and both have real dollar consequences.

1. Even a halal fund needs purification

A screened, compliant ETF still earns a small slice of incidental interest income — from the cash it holds, or from a holding’s minor non-permissible revenue. That share must be purified: calculated and donated to charity, and it is not tax-deductible as a charitable contribution in the way a normal donation would be. SP Funds publishes a quarterly purification calculator for SPUS, SPRE, and SPSK; Wahed publishes quarterly purification reports for HLAL. The amount is usually a fraction of a percent of your holdings — on a $50,000 SPUS position it is typically tens of dollars per year, not hundreds — but skipping it leaves the position technically impure.

2. There is no halal bond — there is sukuk

A conventional bond pays interest, which is riba, so it is off the table. The halal substitute is sukuk: certificates backed by real assets that pass through rental or profit-share income rather than interest. The main US-listed option is SPSK (0.50%), the SP Funds Dow Jones Global Sukuk ETF, with a 30-day SEC yield of 4.41% as of March 2026 — competitive with a conventional bond fund’s yield while staying compliant. If you are building a portfolio with a defensive sleeve, SPSK is what goes where a bond fund would otherwise sit.

Building a three-fund halal core

You do not need all six funds above. A complete, low-cost halal portfolio is three ETFs, weighted to your age and risk tolerance:

A common split: a 35-year-old in a Roth IRA might run 80% SPUS / 10% SPSK / 10% SPRE; a 60-year-old nearing retirement might shift to 50% SPUS / 40% SPSK / 10% SPRE to dial down volatility. Hold all three in a Roth IRA and the growth and the sukuk income come out tax-free in retirement — the single most efficient place to put them.

Where active funds fit: Amana

If you prefer an actively managed fund over an index ETF, the Amana funds from Saturna Capital are the longest-running US Islamic funds (since 1986). AMAGX (Amana Growth) charges 0.86% and posted a 10-year annualized return of 17.56% through May 2026; AMANX (Amana Income) charges 1.01% with a 0.55% yield. The trade-off is explicit: you pay roughly double SPUS’s fee for active management. Over decades, that fee gap is a real drag unless the manager consistently outperforms — which most active managers do not. For most people, the index ETFs win on cost. Amana earns its place if you specifically want active stock selection inside the halal screen.

The decision lever

Start with SPUS for the equity core — it is the cheapest and largest, and it does the heavy lifting. Add SPSK the moment you want a defensive sleeve that a conventional bond fund would otherwise fill. Layer in SPRE if you want real-estate income, and a slice of GLDM if you want an inflation hedge. Set a calendar reminder each quarter to run the SP Funds purification calculator and donate the small impure share. That is a complete, compliant, low-cost halal portfolio — built from funds you can buy today in any Fidelity, Schwab, or Vanguard account. Verify current holdings on Musaffa or Zoya, and if a specific position sits in a gray area, take it to a qualified scholar before you act.