Standard S&P 500
Why it’s not permissible
  • Contains interest-based banks
  • Includes haram industries
  • Fails Shariah debt screens
Halal Alternative
The ethical solution
  • Filters out haram sectors
  • Passes financial & Shariah screening
  • Maintains market exposure
Approved Tickers
SPUS (ETF)
HLAL (ETF)
1. Business Activity Screening
A company is haram if it earns money from:
Interest-based financial services (banks, mortgage lenders, insurance companies).
Alcohol, tobacco, and gambling.
Weapons and defense industries.
Adult entertainment and other unethical services.
Allowed industries include:
Technology, renewable energy, real estate, healthcare, and halal food.
2. Financial Ratio Screening
A company must also meet specific financial requirements:
Debt-to-Asset Ratio:
The company’s total interest-based debt should be less than 30% of its total assets.
Interest-Based Revenue:
Less than 5% of a company's revenue should come from interest-based sources.
3. Ethical and Social Considerations
A company must also meet specific financial requirements:
The company’s business model must align with fairness, social justice, and transparency.
Any form of exploitation, unfair trade, or unethical labor practices should be avoided.
Income • Stable
Islamic Corporate Bonds (Sukuk)
Sukuk provide ownership in real assets instead of interest-based debt. They deliver stable, predictable returns while staying fully Shariah-aligned.
High Growth • Equity
Halal Venture Capital & Growth Investments
Halal VC invests in startups that follow Islamic financial principles. It gives you exposure to high-growth innovation without touching haram sectors.
Property • Yield
Islamic REITs (Real Estate Funds)
Islamic REITs invest in Shariah-screened real estate portfolios. They offer rental-style income while excluding prohibited businesses and properties.
Challenges and Considerations in Halal Investing
While halal investing is growing, it comes with challenges:
Limited Investment Choices
Many mainstream index funds include haram companies, making Shariah-compliant stock selection difficult.
Complexity in Financial Screening
Islamic finance screening criteria require careful monitoring of debt ratios and interest earnings.
Market Volatility & Constraints
Traditional investors can hedge risks with bonds, but halal investors cannot invest in conventional bonds. Fewer options may result in lower diversification