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4 Best Islamic ETFs to Buy in Q4 2025
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Here our experts have picked out some ETFs that subscribe to the principles of Islamic investing. This page goes through each of them in detail, and then takes a quick look at why you might want to put your money into this type of ETF.
What are the top sharia ETFs to buy?
Copy link to sectionThe best Islamic ETFs are ranked in the table below. As this type of investing is relatively new, there aren’t all that many options just yet. However, you can still find the latest price information for any of them by clicking the links in the table, or scroll down to read more about what each one offers in turn.
| # | ETF ticker | ETF name | Learn more |
|---|---|---|---|
| 1 | UMMA | Wahed Dow Jones Islamic World ETF | Learn more > |
| 2 | SPSK | SP Funds Dow Jones Global Sukuk ETF | Learn more > |
| 3 | HLAL | Wahed FTSE USA Shariah ETF | Learn more > |
| 4 | SPUS | SP Funds S&P 50 Sharia Industry Exclusions ETF | Learn more > |
1. Wahed Dow Jones Islamic World ETF (UMMA)
Copy link to section- Assets: $93 million
- Expense ratio: 0.65%
- Year of inception: 2022
- 5-year performance: N/A
- Dividend yield: 0.48%
The Wahed Dow Jones Islamic World ETF is a fund that tracks the Dow Jones Islamic Market International Titans 100 Index, which is made up of 100 shariah-compliant companies. It is offered by Wahed, a company that offers halal investments that are structured by the strictest islamic principles.
The fund holds 98 companies, most of which are in the technology industry. 35% are tech firms followed by health care, industrials, consumer cyclical, and basic materials. Some of the most notable names are the likes of Taiwan Semiconductor, Novo Nordisk, ASML, and Samsung Electronics.
Other companies in the fund are Shopify, Novartis, and Roche. The UMMA ETF has done well over the years as it has risen by over 22% in the past nine months.
2. SP Funds Dow Jones Global Sukuk ETF (SPSK)
Copy link to section- Assets: $207 million
- Expense ratio: 0.55%
- Year of inception: 2019
- 5-year performance: N/A
- Dividend yield: 2.99%
The SP Funds Dow Jones Global Sukuk ETF (SPSK) is another halal ETF to consider. It aims to track the Dow Jones Sukuk Total Return Index, which is made up of US dollar-denominated investment-grade sukuk. A sukuk is a bond-like asset that is issued to comply with Islamic religious law.
Most of its assets are government bonds followed by corporate bonds. Established in 2019, the fund has underperformed the broader market. It is also a bit expensive than basic funds like those that track the S&P 500 and Nasdaq 100 indices.
3. Wahed FTSE USA Shariah ETF (HLAL)
Copy link to section- Assets: $481 million
- Expense ratio: 0.50%
- Year of inception: 2019
- 5-year performance: N/A
- Dividend yield: 0.42%
The Wahed FTSE USA Shariah ETF (HLAL) is another Islamic ETF to consider. It is a passive fund that tracks 204 companies, mostly large and mid-cap companies. The creators scan these companies for their Shariah compliance.
48% of the companies in the fund are in the technology sector while communication, healthcare, and energy follow. Some of the most popular names in the fund are Microsoft, Apple, Meta Platforms, Apple, Tesla, and Tesla.
The fund has done well because of its weighting on the technology sector. It has risen by almost 20% in the past 12 months and by 22% in the past 9 months.
4. SP Funds S&P 50 Sharia Industry Exclusions ETF (SPUS)
Copy link to section- Assets: $644 million
- Expense ratio: 0.45%
- Year of inception: 2019
- 5-year performance: N/A
- Dividend yield: 0.73%
The SP Funds S&P 50 Sharia Industry Exclusions ETF (SPUS) is another shariah compliant fund that has over $644 million in assets. Some of the biggest companies in the fund are Microsoft, Apple, Nvidia, and Amazon.
Most of the companies in the fund are in the technology sector followed by consumer cyclical, healthcare, and communication.
Where to buy the best sharia ETFs
Copy link to sectionTo invest in any of these ETFs you need to find an online broker, check out the best ETF platforms to consider all the options. ETFs trade like regular stocks, so you can buy or sell shares in them at any time through the broker. Choose from one of the options below to get started.
Plus500
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
51% of retail CFD accounts lose money. Your capital is at risk.
What is an Islamic ETF?
Copy link to sectionIt’s a fund that trades on the stock market and which only owns stocks in companies that comply with sharia law. An ETF has its own ticker symbol (you can find the right one for each of the funds on this page in the table at the top) and gain access to it by buying shares through a broker.
The exact principles of Islamic investing can vary, but broadly it means avoiding certain forbidden practices. These are any involvement in alcohol, gambling, or pork, as well as companies that profit from interest or have excessive amounts of debt.
In reality, there is usually some leeway, so that companies which make the vast majority of their money from permitted industries qualify as halal. It’s a good idea to check the documentation for each ETF to see where they put the line.
Are halal ETFs a good investment?
Copy link to sectionGenerally speaking, yes they are. In fact, the guidelines for Islamic investing are good ones for any new or beginner investor. By following these practices you avoid putting your money in risky companies, or those that might be open to industries that could be the victims of new government regulation at any time.
Any ETF that creates a diverse portfolio and filters out those companies with lots of debt makes for a good, low-risk investment. ETFs require little effort to maintain as well, and you can build your wealth relatively simply by putting a small amount of money into the ETF on a regular basis.
As with any investment, it still pays to take the time to follow the news for any developments that might cause a big change in the markets and affect the state of your money. Use the links below to follow the relevant updates, or sign up to a broker to get started right now.
Methodology: How we choose the best Islamic ETFs
Copy link to sectionAt Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.
- Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
- ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
- Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
- Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
- Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.