Is a Sharia-compliant ETF the same as a halal ETF?

Yes — "halal" is the everyday term for the same thing: a fund screened to exclude impermissible businesses and excessive interest-based finance, overseen by a Sharia board.

What is the difference between SPUS and SPSK?

SPUS holds Sharia-screened U.S. equities (for growth), while SPSK holds sukuk — Islamic fixed-income certificates (for stability and income). Many portfolios combine both.

Does Oswol give Sharia-compliant investment advice?

No. Oswol provides research, education and goal-based simulations using Sharia-screened instruments. It is not investment advice, and personal rulings should come from a qualified scholar.

Sharia-compliant ETFs explained: SPUS, HLAL and SPSK

How Islamic equity and sukuk ETFs are screened, how SPUS, HLAL and SPSK differ, and how to build a goal-based Sharia-compliant portfolio.

A Sharia-compliant ETF is a fund whose holdings pass an Islamic screening process — overseen by a Sharia board — so observant investors can hold a diversified portfolio without manually vetting every name. Here's how the screening works and how the main funds differ.

How screening actually works

Two filters are applied:

Business activity. Companies earning meaningful revenue from interest-based finance, alcohol, tobacco, gambling, pork, weapons or adult content are excluded.
Financial ratios. Even an acceptable business is screened out if it carries too much interest-bearing debt or interest income relative to market value (commonly a ~30–33% threshold).

A small portion of incidental impermissible income is typically "purified" by donating an equivalent amount to charity.

SPUS vs HLAL vs SPSK

SPUS — SP Funds S&P 500 Sharia ETF. Screened large-cap U.S. equities; the closest Sharia-compliant analogue to an S&P 500 core holding.
HLAL — Wahed FTSE USA Shariah ETF. A broad U.S. equity exposure on a different screened index.
SPSK — SP Funds Dow Jones Global Sukuk ETF. Holds sukuk (Islamic fixed-income certificates) — the Sharia-compliant counterpart to a bond fund, for stability and income.

A common pattern: equities (SPUS/HLAL) for growth + sukuk (SPSK) for stability, weighted to your goal and horizon. Always confirm a fund's current methodology and consult a qualified scholar for personal rulings.

Building a goal-based portfolio

Start from the goal, not the ticker. A long horizon tilts toward screened equities; a need for stability or income raises the sukuk allocation. Oswol's wealth planner lets you set a target return or target income and projects growth across Sharia-screened archetypes over time — research and education, not advice.