HLAL Vs. VOO: Another Shariah ETF Beating An Unrestricted Large-Cap ETF

Jun. 27, 2023 7:30 AM ETWahed FTSE USA Shariah ETF (HLAL), VOOHLAL, VOO

Summary

  • The Wahed FTSE USA Shariah ETF has outperformed the Vanguard S&P 500 ETF over its four-year history, providing higher returns and a higher Beta.
  • HLAL has $260m in AUM and a 50bps fee, while VOO has $315b in AUM and a 3bps fee; HLAL's TTM Yield is 0.95% compared to VOO's 1.5%.
  • Both ETFs' results are driven by a fraction of the stocks held, with the top 20 stocks accounting for 63% of HLAL's portfolio and 40% of VOO's.
  • Investors enticed by HLAL's high technology weight would do better owning ETFs that focus on those stocks.
  • Looking for more investing ideas like this one? Get them exclusively at Hoya Capital Income Builder. Learn More »
Top view of coins, rosary beads and memo note written with SHARIAH COMPLIANT.

Abu Hanifah/iStock via Getty Images

(This article was co-produced with Hoya Capital Real Estate)

Introduction

While there are investors who want at least some of their portfolio reflecting their values, such as ESG funds, ideally such alternatives can be done without loss of the return as compared

This article was written by

8.92K Followers

Retired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts.

He is a contributing author to the investing group iREIT®+HOYA Capital

The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.

Learn more

.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About HLAL ETF

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Compare to Peers

More on HLAL

Related Stocks

SymbolLast Price% Chg
VOO
--
HLAL
--