SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS)

Overview

The SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) seeks to track the performance of the S&P 500 Shariah Industry Exclusions Index, which is composed of Shariah-compliant stocks from the S&P 500. It aims to provide exposure to large-cap U.S. equities while adhering to Islamic investment principles, excluding companies involved in industries like alcohol, tobacco, gambling, pork, conventional financial services, and weapons.

Reputation and Reliability

SP Funds is a relatively smaller ETF provider, specializing in Shariah-compliant investment products. Their reputation is growing within the niche of ethical and religious-based investing.

Management Expertise

SP Funds management team has experience in managing Shariah-compliant investment strategies, ensuring adherence to Islamic principles.

Goal

To track the performance of the S&P 500 Shariah Industry Exclusions Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to replicate the index's holdings and weightings.

Composition The ETF holds a diversified portfolio of large-cap U.S. equities that meet Shariah compliance standards.

Market Share: SPUS has a relatively smaller market share compared to broader S&P 500 ETFs, due to its niche focus on Shariah-compliant investing.

Total Net Assets (AUM): 194860798

Key Competitors

• HLAL
• SPRH

Competitive Landscape

The competitive landscape includes other Shariah-compliant ETFs. SPUS's advantage lies in its close tracking of the S&P 500, offering broad market exposure while adhering to Islamic principles. A disadvantage could be potentially lower returns compared to conventional S&P 500 ETFs due to industry exclusions.

Historical Performance: Historical performance data would need to be dynamically pulled but it can be assumed that this ETF's historical performance is correlated to the S&P 500's performance with some deviations due to the exclusions of certain sectors.

Benchmark Comparison: The ETF's performance is benchmarked against the S&P 500 Shariah Industry Exclusions Index. Deviations from the index's performance can occur due to tracking error and fund expenses.

Expense Ratio: 0.49

Average Trading Volume

The average trading volume for SPUS indicates moderate liquidity, allowing for relatively easy buying and selling of shares.

Bid-Ask Spread

The bid-ask spread for SPUS is generally reasonable, reflecting its moderate liquidity and market demand.

Market Environment Factors

Economic indicators, market sentiment, and sector-specific growth prospects all impact SPUS. Demand for Shariah-compliant investments also influences the ETF's performance.

Growth Trajectory

The growth trajectory depends on the overall market performance and the increasing interest in ethical and Shariah-compliant investment options. Changes might include adjustments to holdings based on index updates and Shariah compliance reviews.

Competitive Edge

SPUS offers a unique combination of S&P 500 exposure and Shariah compliance, catering to investors seeking ethical and religiously aligned investments. Its passive tracking strategy provides cost-effective access to a diversified portfolio of Shariah-compliant U.S. equities. The ETF benefits from the growing demand for socially responsible investing and the increasing awareness of Islamic finance principles. This niche focus gives it a competitive edge over broad-market ETFs that do not adhere to Shariah guidelines. The fund's adherence to a well-known index also adds a layer of transparency and familiarity for investors.

Volatility

SPUS's volatility is expected to be similar to that of the S&P 500, but may be slightly lower due to exclusions of specific sectors which are considered more volatile.

Market Risk

The ETF is subject to market risk, meaning its value can fluctuate based on overall market conditions and investor sentiment. Specific risks include the potential for underperformance compared to the broader S&P 500 due to sector exclusions and the potential for changes in Shariah compliance standards.

Ideal Investor Profile

The ideal investor is one who seeks exposure to large-cap U.S. equities while adhering to Islamic investment principles. This includes individuals and institutions looking for Shariah-compliant investment options.

Market Risk

SPUS is best suited for long-term investors seeking to align their investments with their ethical and religious values. It can also be used as a component of a diversified portfolio.

SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) provides exposure to the S&P 500 while adhering to Shariah investment principles. It excludes companies involved in industries deemed non-compliant with Islamic law. This ETF is suitable for long-term investors seeking ethical and religiously aligned investments. While providing broad market exposure, it may underperform the broader S&P 500 due to sector exclusions, but benefits from growing interest in ethical investing.

Data Sources:

• SP Funds Website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market data is subject to change and may not be accurate or complete.