SPUS ETF: S&P 500 Sharia Industry Exclusions ETF
SPUS stands for SP Funds S&P 500 Sharia Industry Exclusions ETF, an exchange-traded fund (ETF) that provides investment exposure to a group of U.S. stocks listed on the S&P 500 Index, but excludes companies that do not comply with Sharia standards.
🟩 Introduction to SPUS
Launched in December 2019, SPUS is managed by SP Funds in partnership with Toroso Investments. It is traded on the New York Stock Exchange (NYSE Arca).
🧠Fund Objectives
- Halal Investment: Focuses on companies that comply with Sharia standards, such as avoiding usury, alcohol, gambling, weapons, and conventional insurance.
- Investment Diversification: Includes more than 200 companies across multiple sectors.
- Risk Reduction: By excluding companies with high leverage (more than 30% of market capitalization).
- Value Focus: Selects companies with strong financial performance and a low-risk capital structure.
💼 Fund Components
The fund includes major companies such as:
- Microsoft (MSFT) – 11.1%
- Nvidia (NVDA) – 11.0%
- Apple (AAPL) – 9.3%
- Amazon (AMZN) – 6.2%
- Meta (META) – 4.7%
- Alphabet (GOOGL/GOOG) – 5.8% combined
The top 10 companies represent approximately 54% of the fund's total assets, reflecting a significant focus on the technology sector.
📊 Financial Performance (through June 2025)
- Share Price: $43.95
- 52-Week High: $44.69
- 52-Week Low: $33.32
- Annualized Return: 8.34%
- Net Assets: $1.27 billion
- Number of Shares Outstanding: 29.8 million
- Expense Ratio: 0.45%
- Annualized Dividend Yield: 0.72%
🧾 Dividends and Profit
- The fund pays quarterly dividends.
- The current annual dividend yield is approximately 0.72%.
- Dividends are distributed as qualified dividends, which may have a mitigating tax impact for US investors.
🧠Why Should Investors Choose SPUS?
- Sharia Compliance: Suitable for investors seeking a halal investment.
- Smart Diversification: Includes strong companies across multiple sectors.
- Stable Performance: Achieved 93% growth over the past 5 years.
- Relatively Low Expenses: Only 0.45%.
- High Transparency: Fund components are updated daily.
💵 Current Share Price
Price: Approximately $43.69 per share (Closing Date: June 24, 2025)⁽¹⁾
💰 Market Capitalization (Net Assets)
- Fund Market Capitalization: $1.23 billion
- Number of Outstanding Shares: 29.8 million shares
🧠Future Directions of SPUS
Although SPUS is an ETF and does not launch "projects" like companies, its future directions include:
- Continuing to Track the S&P 500 Shariah Industry Exclusions Index: Invest in large, Shariah-compliant U.S. companies, excluding non-permissible sectors (e.g., conventional banking, alcohol, gambling, weapons, etc.).
- Focusing on Low-Leverage Companies: The fund selects companies with low debt (less than 30% of market capitalization), making it more stable during crises.
- Overweighting the Technology Sector: Currently, more than 48% of the fund’s assets are allocated to tech companies like Microsoft, Nvidia, Apple, and Amazon, reflecting a focus on long-term growth.
- Benefiting from the Expansion of Halal ESG Funds: With growing demand for ethical and Sharia-compliant investing, SPUS is expected to attract more individual and institutional investors.
¹ Data as of June 2025