 The
SPDR S&P 500 Sharia Industry Exclusions ETF (SPUS) is an
exchange-traded fund (ETF) that seeks to provide investors with
exposure to the US equity market while adhering to Islamic investment
principles. The ETF's objective is to track the performance of the S&P
500 Shariah Industry Exclusions Index, which is a widely recognized
benchmark for Shariah-compliant US stocks.
SPUS invests in a
diversified portfolio of US stocks that comply with Islamic investment
principles, which prohibit investment in companies involved in
industries such as alcohol, tobacco, gambling, and weapons
manufacturing. The ETF's holdings are selected based on criteria
established by Shariah scholars and are designed to provide investors
with exposure to a broad range of Shariah-compliant US stocks.
As of September 2021, the SPUS ETF has a net asset value (NAV) of
approximately $27 million and holds a portfolio of over 400 US stocks.
The ETF's expense ratio is 0.50%, which is relatively low compared to
other ETFs.
SPUS has a track record of providing investors with
solid returns. Since its inception in 2019, the fund has provided
investors with an annualized return of around 17% (as of March 23,
2023).
Overall, the SPDR S&P 500 Sharia Industry Exclusions ETF
(SPUS) could be a good investment option for investors looking to
invest in US equities while adhering to Islamic investment principles.
However, as with any investment, it is important to conduct thorough
research and consider factors such as risk tolerance, investment
objectives, and fees before making a decision. Additionally, investors
should be aware that the ETF's screening methodology may result in a
more concentrated portfolio compared to other broad-based US equity
ETFs.
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