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

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

Profile

SPUS tracks the S&P 500 Sharia Industry Exclusions Index, offering exposure to US large-cap companies that comply with Islamic investment principles. It excludes companies involved in specific industries like:

• Alcohol & Tobacco
• Gambling & Casinos
• Conventional Finance (banks)
• Pork Products
• Production of Adult Entertainment

This ETF adopts a passive, index-tracking strategy.

Objective

Its primary goal is to achieve returns closely mirroring the performance of the S&P 500 Sharia Industry Exclusions Index. It caters to investors seeking ethical investing alignments and broad US equity market exposure.

Issuer

SPUS is issued by State Street Global Advisors, a globally recognized asset management firm with over $4 trillion in assets under management. State Street boasts a solid reputation and extensive expertise in the ETF and index fund industry.

Market Share & Total Net Assets

SPUS commands a market share of 4.5% within the Islamic Equity ETF category, managing over $1.49 billion in total net assets.

Moat

Its main competitive advantage lies in its alignment with Islamic investing principles, attracting a specific investor clientele. Additionally, State Street's robust reputation and experience in managing index funds contribute to its moat.

Financial Performance

SPUS has historically demonstrated strong performance, exceeding its benchmark index (S&P 500 Shariah Industry Exclusions Index) over various timeframes. However, past performance is not a guarantee of future results.

Growth Trajectory

The ETF has experienced positive growth in assets under management, indicating its growing popularity among investors.

Liquidity

SPUS enjoys healthy trading volume, averaging over 100,000 shares daily, and maintains a tight bid-ask spread, ensuring ease of buying and selling.

Market Dynamics

Factors like economic growth, interest rate fluctuations, and sector performance significantly impact the ETF's market environment.

Key Competitors

SPUS competes with other Islamic equity ETFs like ISLM (iShares MSCI USA Islamic ETF) and HLAL (VanEck Merkaba US Islamic Equity ETF).

Expense Ratio

SPUS boasts a relatively low expense ratio of 0.35%, making it a cost-effective investment option.

Investment Approach

This ETF passively tracks the S&P 500 Sharia Industry Exclusions Index, primarily investing in large-cap US stocks adhering to Islamic investing principles.

Key Points

• Offers broad exposure to US large-cap companies with Shariah-compliant screening.
• Strong historical performance and competitive expense ratio.
• Backed by the renowned State Street Global Advisors.

Risks

• Volatility inherent to the stock market.
• Concentration in large-cap US stocks.
• Sharia-compliant screening might limit diversification potential.

Who Should Consider Investing?

SPUS suits investors seeking:

• Ethical Islamic investing alignment.
• Broad exposure to US large-cap stocks.
• Passive, index-tracking investment approach.

Fundamental Rating Based on AI

8/10

SPUS receives a favorable AI-based rating, highlighting its strong financial standing, competitive market position, and promising prospects. However, investors should remain mindful of the inherent market risks and conduct further due diligence before investing.

Resources & Disclaimers

This analysis draws data from sources like:

• SP Funds website
• State Street Global Advisors website
• ETF.com

This information is intended for educational purposes only and should not be construed as financial advice. Please consult with a licensed financial professional before making any investment decisions.