HLAL vs SPY

Quick Verdict

SPY has a lower expense ratio. HLAL delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: HLALMore Diversified: SPY

Side-by-Side Comparison

MetricHLALSPYWinner
Expense Ratio0.50%0.09%
AUM$906M$789.1B
Dividend Yield0.45%1.01%
Holdings209505
YTD Return+17.01%+13.28%
1Y Return+33.46%+23.94%
3Y Return (annualized)+19.78%+21.07%
5Y Return (annualized)+14.01%+13.27%
Volatility (annualized)18.0%15.3%
Max Drawdown-33.6%-56.5%
Fund FamilyWahed InvestState Street Investment Management
CategoryEquityEquity
InceptionJul 15, 2019Jan 22, 1993

HLAL vs SPY Performance

Wahed FTSE USA Shariah ETF (HLAL) is a ETF from Wahed Invest and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HLAL returned +33.46% while SPY returned +23.94%. Year to date, HLAL is up 17.01% versus a gain of 13.28% for SPY.

Over three years, HLAL compounded at +19.78% per year against +21.07% for SPY; over five years the annualized figures are +14.01% and +13.27% respectively. Across the full 7-year window we track, HLAL has the edge at +17.07% annualized vs +8.84%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HLAL has been the more volatile fund, with annualized monthly volatility of 18.0% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -33.6% for HLAL and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

HLAL charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, HLAL currently yields 0.45% against 1.01% for SPY.

Holdings Overlap

52.5%overlap

HLAL and SPY share 185 holdings out of 526 unique holdings combined, representing a 52.5% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in HLALWeight in SPYDifference
AAPL13.35%7.09%6.26%
MSFT9.25%4.43%4.82%
GOOGL6.72%3.32%3.40%
AVGOProProPro
GOOGProProPro
METAProProPro
TSLAProProPro
MUProProPro
LLYProProPro
AMDProProPro
See all 10 holdings HLAL shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, HLAL or SPY?

HLAL has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, HLAL or SPY?

Over the past year HLAL returned +33.46% vs +23.94% for SPY, so HLAL leads on 1-year performance. Over the longest common window we track (7 years), HLAL annualized +17.07% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, HLAL or SPY?

HLAL has been the more volatile fund at 18.0% annualized versus 15.3% for SPY. Worst drawdown: HLAL -33.6% vs SPY -56.5%.

Should I hold both HLAL and SPY?

HLAL and SPY have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between HLAL and SPY?

HLAL and SPY share 185 common holdings with a 52.5% weight overlap. Combined, they hold 526 unique securities.

Which pays a higher dividend, HLAL or SPY?

HLAL yields 0.45% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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