Wahed FTSE USA Shariah ETF (HLAL)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Wahed FTSE USA Shariah ETF (HLAL) with AI Score 47/100 (Weak). Wahed FTSE USA Shariah ETF (HLAL) aims to track the performance of large- and mid-cap U. S. companies that adhere to Shariah investment principles. Market cap: 0, Sector: Financial services.
Last analyzed: Mar 18, 2026Wahed FTSE USA Shariah ETF (HLAL) Financial Services Profile
Wahed FTSE USA Shariah ETF provides investors with exposure to U.S. large- and mid-cap equities screened for Shariah compliance, offering a unique investment option for those seeking to align their investments with Islamic principles. The fund aims to replicate the FTSE USA Shariah Index.
Investment Thesis
HLAL presents an investment avenue for individuals seeking Shariah-compliant exposure to the U.S. equity market. The fund's primary value driver is its adherence to Islamic finance principles, which appeals to a specific segment of investors. A potential catalyst is the increasing awareness and demand for ethical and socially responsible investing, which could drive inflows into HLAL. However, the fund's non-diversified nature and focus on a specific subset of the market also pose potential risks, as its performance is closely tied to the performance of the FTSE USA Shariah Index and the Shariah-compliant segment of the U.S. equity market. Beta is 1.00, indicating market correlation.
Based on FMP financials and quantitative analysis
Key Highlights
- HLAL tracks the FTSE USA Shariah Index, providing exposure to Shariah-compliant U.S. equities.
- The fund invests at least 80% of its assets in securities included in the underlying index.
- HLAL is a non-diversified fund, potentially leading to higher volatility compared to diversified ETFs.
- The ETF offers a way for investors to align their investments with Islamic principles.
- HLAL's beta is 1.00, indicating a correlation with the broader market.
Competitors & Peers
Strengths
- Focus on Shariah-compliant investing.
- Tracks a well-known index (FTSE USA Shariah Index).
- Provides access to U.S. equities.
- Transparent and accessible investment option.
Weaknesses
- Non-diversified fund.
- Limited investment universe due to Shariah compliance requirements.
- May have higher volatility compared to diversified ETFs.
- Dependence on the performance of the FTSE USA Shariah Index.
Catalysts
- Upcoming: Increasing demand for ethical and socially responsible investing could drive inflows into HLAL.
- Ongoing: Growing awareness of Shariah-compliant investment options may attract new investors.
- Ongoing: Expansion of the global Islamic finance market could create new opportunities for HLAL.
Risks
- Potential: Non-diversified nature of the fund may lead to higher volatility.
- Potential: Limited investment universe due to Shariah compliance requirements.
- Potential: Changes in Shariah compliance standards could impact the fund's investment strategy.
- Ongoing: Economic downturns affecting the U.S. equity market could negatively impact HLAL's performance.
Growth Opportunities
- Expansion of Shariah-Compliant Investing: The global market for Shariah-compliant investments is experiencing growth, driven by an increasing awareness and demand for ethical and socially responsible investment options. HLAL can capitalize on this trend by attracting investors seeking to align their portfolios with Islamic principles. The total assets under management (AUM) in Shariah-compliant investments are projected to reach trillions of dollars by 2030, presenting a significant growth opportunity for HLAL.
- Increased Awareness and Education: Many investors may not be fully aware of Shariah-compliant investing or the availability of ETFs like HLAL. By increasing awareness and providing educational resources about Islamic finance principles and the benefits of Shariah-compliant investing, HLAL can attract new investors and expand its market reach. Marketing campaigns and partnerships with Islamic financial institutions can help to educate potential investors.
- Product Diversification: HLAL can expand its product offerings by launching additional Shariah-compliant ETFs that target different sectors, geographies, or asset classes. This would allow investors to build diversified Shariah-compliant portfolios using HLAL's suite of products. For example, HLAL could launch an ETF that focuses on international Shariah-compliant equities or Shariah-compliant sukuk (Islamic bonds).
- Partnerships with Islamic Institutions: Collaborating with Islamic banks, financial institutions, and organizations can help HLAL to reach a wider audience of potential investors. These partnerships can involve joint marketing efforts, distribution agreements, and the development of customized investment solutions for Islamic clients. By leveraging the existing networks and expertise of these institutions, HLAL can accelerate its growth and expand its market presence.
- Technological Innovation: HLAL can leverage technology to enhance its investment process, improve its risk management capabilities, and provide better service to its investors. This could involve using artificial intelligence (AI) and machine learning (ML) to analyze Shariah-compliant investment opportunities, developing a mobile app for investors to track their portfolios, and offering personalized investment advice based on their individual needs and preferences.
Opportunities
- Growth in the Shariah-compliant investment market.
- Increased awareness of ethical and socially responsible investing.
- Expansion into new markets and asset classes.
- Partnerships with Islamic financial institutions.
Threats
- Competition from other Shariah-compliant ETFs.
- Changes in Shariah compliance standards.
- Economic downturns affecting the U.S. equity market.
- Geopolitical risks impacting global markets.
Competitive Advantages
- Adherence to Shariah principles provides a unique value proposition for a specific segment of investors.
- Established track record of tracking the FTSE USA Shariah Index.
- Brand recognition among Shariah-compliant investors.
- Expertise in screening companies for Shariah compliance.
About HLAL
The Wahed FTSE USA Shariah ETF (HLAL) is designed to mirror the performance of the FTSE USA Shariah Index, which comprises large- and mid-capitalization U.S. companies that adhere to Shariah investment guidelines. These guidelines are determined by subject-matter experts who interpret Islamic principles related to finance and business. HLAL offers investors a way to participate in the U.S. equity market while adhering to specific ethical and religious standards. The fund ensures that at least 80% of its total assets are invested in the component securities of the index, reflecting its commitment to tracking the underlying benchmark. As a non-diversified fund, HLAL may have a higher concentration of investments in specific sectors or companies compared to diversified ETFs, potentially leading to increased volatility. HLAL was created to cater to the growing demand for Shariah-compliant investment options, providing a transparent and accessible way for investors to align their financial goals with their values.
What They Do
- Tracks the performance of the FTSE USA Shariah Index.
- Invests in large- and mid-capitalization U.S. companies that comply with Shariah principles.
- Provides investors with exposure to the U.S. equity market while adhering to Islamic finance guidelines.
- Screens companies based on religious criteria determined by subject-matter experts.
- Offers a transparent and accessible way to invest in Shariah-compliant equities.
- Manages a portfolio of securities that meet the requirements of the underlying index.
- Rebalances the portfolio periodically to maintain alignment with the index.
Business Model
- HLAL generates revenue through management fees charged to investors.
- The fund's expense ratio covers the costs of managing the portfolio and operating the ETF.
- HLAL's profitability depends on its ability to attract and retain investors.
- The fund's AUM is a key driver of its revenue.
Industry Context
The ETF market is highly competitive, with numerous funds offering exposure to various sectors, geographies, and investment strategies. HLAL operates within the segment of socially responsible investing (SRI) and Shariah-compliant finance. The demand for SRI and ethical investment options has been growing, driven by increasing awareness of environmental, social, and governance (ESG) factors. HLAL differentiates itself by focusing specifically on Shariah-compliant U.S. equities, catering to investors who seek to align their investments with Islamic principles. The growth of this niche market depends on the increasing adoption of Islamic finance principles and the demand for ethical investment options.
Key Customers
- Individual investors seeking Shariah-compliant investment options.
- Islamic financial institutions.
- Family offices with a focus on ethical investing.
- Religious organizations and endowments.
Financials
Chart & Info
Wahed FTSE USA Shariah ETF (HLAL) stock price: Price data unavailable
Latest News
No recent news available for HLAL.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for HLAL.
Price Targets
Wall Street price target analysis for HLAL.
MoonshotScore
What does this score mean?
The MoonshotScore rates HLAL's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Equity ETFWahed FTSE USA Shariah ETF Stock: Key Questions Answered
What does Wahed FTSE USA Shariah ETF do?
Wahed FTSE USA Shariah ETF (HLAL) provides investors with a way to invest in the U.S. stock market while adhering to Islamic principles. It tracks the FTSE USA Shariah Index, which includes large and mid-cap U.S. companies that meet specific Shariah compliance criteria. This means that the companies included in the index are screened to ensure they avoid activities such as involvement in alcohol, tobacco, gambling, and interest-based finance. HLAL offers a transparent and accessible way for investors to align their financial goals with their religious values.
What do analysts say about HLAL stock?
As of March 18, 2026, there is no readily available analyst consensus on HLAL stock. This could be due to the fund's niche focus and relatively smaller size compared to broader market ETFs. Investors may want to evaluate HLAL's expense ratio, tracking error, and liquidity when evaluating its investment potential. The fund's performance is closely tied to the performance of the FTSE USA Shariah Index and the Shariah-compliant segment of the U.S. equity market. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
What are the main risks for HLAL?
The main risks for HLAL include its non-diversified nature, which can lead to higher volatility compared to diversified ETFs. The fund's limited investment universe, due to Shariah compliance requirements, may also restrict its ability to generate returns. Changes in Shariah compliance standards could impact the fund's investment strategy and performance. Economic downturns affecting the U.S. equity market could negatively impact HLAL's performance. Investors should carefully consider these risks before investing in HLAL.
How does Wahed FTSE USA Shariah ETF compare to competitors in its industry?
HLAL distinguishes itself by focusing specifically on Shariah-compliant U.S. equities, catering to investors seeking to align their investments with Islamic principles. Competitors like SPUS offer broader S&P 500 Shariah-compliant exposure, while ISDU provides an internationally available alternative. HLAL's performance is closely tied to the FTSE USA Shariah Index, while competitors may track different benchmarks. Investors should compare the expense ratios, tracking errors, and liquidity of these ETFs to determine which best suits their needs and investment objectives.
What are the key financial metrics investors watch for HLAL?
Key financial metrics for HLAL include its expense ratio, which reflects the cost of managing the fund; its tracking error, which measures how closely the fund replicates the performance of the FTSE USA Shariah Index; and its liquidity, which indicates how easily investors can buy and sell shares of the ETF. Investors also monitor the fund's AUM, which reflects its popularity and scale. HLAL's dividend yield is zero, as the fund does not distribute dividends. Its beta is 1.00, indicating market correlation.
What are the key factors to evaluate for HLAL?
Wahed FTSE USA Shariah ETF (HLAL) currently holds an AI score of 47/100, indicating low score. Key strength: Focus on Shariah-compliant investing.. Primary risk to monitor: Potential: Non-diversified nature of the fund may lead to higher volatility.. This is not financial advice.
How frequently does HLAL data refresh on this page?
HLAL prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven HLAL's recent stock price performance?
Recent price movement in Wahed FTSE USA Shariah ETF (HLAL) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Focus on Shariah-compliant investing.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for HLAL, which may provide further insights.
- The information provided is based on available data and may be subject to change.