HLAL vs SPY
Wahed FTSE USA Shariah ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. HLAL delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HLAL | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $963M | $821.1B | |
| Dividend Yield | 0.46% | 1.01% | |
| Holdings | 208 | 505 | |
| YTD Return | +16.19% | +12.71% | |
| 1Y Return | +28.55% | +20.53% | |
| 3Y Return (annualized) | +19.96% | +21.60% | |
| 5Y Return (annualized) | +13.57% | +12.79% | |
| Volatility (annualized) | 17.9% | 15.3% | |
| Max Drawdown | -33.6% | -56.5% | |
| Fund Family | Wahed Invest | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jul 15, 2019 | Jan 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 +28.55% while SPY returned +20.53%. Year to date, HLAL is up 16.19% versus a gain of 12.71% for SPY.
Over three years, HLAL compounded at +19.96% per year against +21.60% for SPY; over five years the annualized figures are +13.57% and +12.79% respectively. Across the full 7-year window we track, HLAL has the edge at +16.81% annualized vs +8.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HLAL has been the more volatile fund, with annualized monthly volatility of 17.9% 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 0.46% against 1.01% for SPY.
Holdings Overlap
HLAL and SPY share 190 holdings out of 526 unique holdings combined, representing a 59.4% weight overlap.
High overlap means holding both may not provide much additional diversification.
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 +28.55% vs +20.53% for SPY, so HLAL leads on 1-year performance. Over the longest common window we track (7 years), HLAL annualized +16.81% vs +8.80% for SPY. Past performance does not guarantee future results.
Which is riskier, HLAL or SPY?
HLAL has been the more volatile fund at 17.9% 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 190 common holdings with a 59.4% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, HLAL or SPY?
HLAL yields 0.46% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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