Mar 11 • 🌍 ETFs & Funds
SPUS vs HLAL vs HIWS vs MWIM: The definitive halal ETF comparison
If you want to invest in a halal index fund without picking individual stocks, these four ETFs are the main options. Here's how they compare — and which is right for you.
OVERVIEW
SPUS — SP Funds S&P 500 Shariah ETF
- Geography: US stocks only (S&P 500 screened)
- Expense ratio (TER): 0.45%
- Screening: AAOIFI standards via Ratings Intelligence
- Listed: US (NYSE Arca)
- AUM: ~$900M
- Best for: US-based investors wanting US equity exposure
HLAL — Wahed FTSE USA Shariah ETF
- Geography: US stocks only (FTSE USA screened)
- Expense ratio (TER): 0.50%
- Screening: FTSE Russell Islamic Index methodology
- Listed: US (NASDAQ)
- AUM: ~$350M
- Best for: US-based investors; alternative to SPUS
HIWS — HSBC Islamic Global Equity Index Fund (ETF version: HIWO/HIWS)
- Geography: Global developed markets
- Expense ratio (TER): 0.17%
- Screening: MSCI Islamic Index methodology
- Listed: London Stock Exchange
- AUM: ~$1B+
- Best for: UK/EU investors wanting global exposure at low cost
MWIM — Invesco MSCI ACWI Islamic M-Series UCITS ETF
- Geography: Global (developed + emerging markets)
- Expense ratio (TER): 0.35%
- Screening: MSCI ACWI Islamic M-Series
- Listed: London Stock Exchange (launched 2025)
- Best for: UK/EU investors wanting single-fund global coverage including emerging markets
HEAD-TO-HEAD COMPARISON
COST: HIWS wins at 0.17% TER. SPUS and HLAL are more expensive at 0.45-0.50%.
COVERAGE: MWIM is the most comprehensive — both developed AND emerging markets in one fund. HIWS covers only developed markets. SPUS and HLAL are US-only.
SCREENING METHODOLOGY: SPUS uses AAOIFI (strictest, most widely accepted). HIWS and MWIM use MSCI Islamic methodology (slightly less strict in some areas). HLAL uses FTSE Russell Islamic.
WHICH STANDARD IS STRICTER? AAOIFI (used by SPUS) is generally considered the gold standard in Islamic finance. However, the practical difference in portfolio composition is small.
PURIFICATION: All four require some purification of dividends. SPUS and HLAL are more transparent about publishing purification ratios. HIWS has historically been less transparent about this — a genuine concern.
MY RECOMMENDATION BY INVESTOR TYPE
US-based investor: SPUS is the go-to. Largest AUM, AAOIFI screening, reasonable cost. If you want an alternative with slightly different methodology, HLAL.
UK/EU investor wanting simplicity: MWIM in a stocks & shares ISA or SIPP. One fund, global coverage including emerging markets.
UK/EU investor focused on cost: HIWS at 0.17% TER is compelling, though the purification transparency issue should make you ask questions before committing a large amount.
Global investor wanting maximum diversification: MWIM covers the most ground in a single ticker.
THE BOTTOM LINE
For most investors, one well-chosen halal ETF is all you need. You don't need to own all four.
Which of these are you currently holding, or considering? Drop your situation (country, account type, amount) below and I'll give you a specific recommendation.
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SPUS vs HLAL vs HIWS vs MWIM: The definitive halal ETF comparison
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