Investing in U.S. stocks through the S&P 500 index is popular worldwide because buying a single fund provides ownership in hundreds of major global companies. However, for Muslim investors, this convenience raises important questions since the 500 companies include businesses not compliant with Shariah principles. Buying the entire index means indirectly holding shares in those companies.
The SPUS ETF was created specifically to address this by starting with the S&P 500 stocks and filtering them according to Shariah criteria, leaving about 200 stocks. Thairath Money explores how this fund selects stocks, what’s in its portfolio, and its past performance.
When considering investment in the U.S. stock market, the S&P 500 index is often a primary choice, comprising 500 large U.S. companies. However, for Muslim investors, direct investment in this index may be limited because some companies engage in activities not compliant with Shariah law.
Examples include Philip Morris International, a cigarette manufacturer; Constellation Brands, a beer and wine producer and distributor; and Las Vegas Sands, which operates casinos.
Investing in a standard S&P 500 index fund may thus expose investors to shares in these businesses.
This led to the creation of SPUS, or SP Funds S&P 500 Sharia Industry Exclusions lusions ETF. SPUS is an ETF managed by SP Funds and listed on the New York Stock Exchange since 17 Dec 2019. It focuses on U.S. stocks filtered from the S&P 500 Shariah Industry Exclusions Index, which screens S&P 500 stocks according to Shariah principles, resulting in about 200 selected companies.
In simple terms, SPUS acts like a basket of S&P 500 stocks screened for compliance with Islamic law, making it easier for Muslim investors to access the U.S. stock market without individually analyzing each company's business, revenue structure, and financial statements.
The fund manager uses a two-step screening process:
All criteria reference standards from AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions), which sets accounting and auditing standards for Islamic financial institutions.
Which stocks are included in the fund?
After screening, about 200 stocks remain. As of 19 Oct 2026, the top five holdings account for roughly 45% of the fund and include:
Beyond technology, the portfolio also contains healthcare stocks like Eli Lilly, Johnson & Johnson, and AbbVie; energy stocks such as ExxonMobil and ConocoPhillips; and various consumer goods and industrial stocks including Procter & Gamble, Home Depot, and Union Pacific.
Regarding returns as of 30 Sep 2026, SPUS has outperformed the S&P 500 Total Return index as follows:
These figures are notable but partly reflect the heavy weighting in technology stocks during a period when that sector performed strongly. Remember, past performance does not guarantee future results, and if markets shift, outcomes may reverse.
Additionally, SPUS is a passive fund tracking an index, not actively attempting to outperform or hedge during downturns. Its Shariah-based stock restrictions narrow investment options compared to funds investing broadly, which may impact returns versus general market indices.
Still, SPUS offers Muslim investors a way to invest in major U.S. stocks with AAOIFI screening. Its advantage is access to global companies through a single fund, while the main caution is portfolio concentration in technology stocks, leading to higher volatility when that sector declines.
Note: This article is for informational purposes only and is not investment advice. Past returns do not guarantee future results. Investors should study prospectuses and make decisions carefully before investing.
Sources:SPUS
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