HLAL vs SPY

HLAL vs SPY

Which is better, HLAL or SPY?

Nearly the same fund. SPY costs less.

SPY has a lower expense ratio. HLAL led over 1Y, 5Y and the full window, SPY over 3Y. The two have moved almost in lockstep, correlation 0.97. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 58.6%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricHLALSPY
Expense Ratio0.50%0.09%Best
AUM$939M$804.7B
Dividend Yield0.44%0.98%
Holdings213505
YTD Return+16.62%Best+11.45%
1Y Return+24.52%Best+15.87%
3Y Return (annualized)+19.71%+20.93%Best
5Y Return (annualized)+13.81%Best+12.59%
Volatility (annualized)17.9%16.5%Best
Max Drawdown-33.6%Best-34.1%
$10,000 over 5 years$19,094Best$18,093
Top 10 Weight58.6%37.8%Best
Fund FamilyWahed InvestState Street Investment Management
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionJul 15, 2019Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Jul 16, 2019 to Sep 15, 2026 (7.2 years).

HLAL vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.2 years both funds cover.

HLAL vs SPY Performance

Wahed FTSE USA Shariah ETF (HLAL) is an ETF from Wahed Invest and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year HLAL returned +24.52% while SPY returned +15.87%. Year to date, HLAL is up 16.62% versus a gain of 11.45% for SPY.

Over three years, HLAL compounded at +19.71% per year against +20.93% for SPY; over five years the annualized figures are +13.81% and +12.59% respectively. Across the full 7-year window we track, HLAL has the edge at +16.73% annualized vs +14.99%.

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 16.5% 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 -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 0.44% against 0.98% for SPY.

Holdings Overlap

HLAL already in SPY98.7%
SPY already in HLAL59.7%

98.7% of HLAL's money is in holdings SPY also owns. 59.7% of SPY's money is in holdings HLAL also owns.

Most of HLAL is already inside SPY. Owning both mostly buys the same companies twice.

190 positions in common, counted across the 210 positions we hold weights for in HLAL and 504 in SPY, against full books of 213 and 505.

What only one of them owns

Our book lists 309 positions for SPY that do not appear in our book for HLAL (39.7% of the fund), and 17 for HLAL that do not appear in SPY (0.9%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in HLALWeight in SPYDifference
NVDANvidia Corp13.01%8.01%5.00%
AAPLApple, Inc11.91%7.26%4.65%
MSFTMicrosoft Corp9.35%5.66%3.69%
GOOGLAlphabet Inc,class A4.98%2.99%1.99%
AVGOBroadcom Inc4.33%2.66%1.67%
GOOGAlphabet Inc4.02%2.39%1.63%
METAMeta Platforms Inc3.30%1.93%1.37%
MUMicron Technology, Inc.2.73%1.60%1.13%
TSLATesla Inc2.64%1.52%1.12%
LLYEli Lilly & Co.2.33%1.40%0.93%

98.7% of HLAL is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

HLALSPY

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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, by $41 a year on a $10,000 investment.

Which performed better, HLAL or SPY?

Over the past year HLAL returned +24.52% vs +15.87% for SPY, so HLAL leads on 1-year performance. Over the longest common window we track (7 years), HLAL annualized +16.73% vs +14.99% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HLAL or SPY?

HLAL has been the more volatile fund at 17.9% annualized versus 16.5% for SPY. Worst drawdown: HLAL -33.6% vs SPY -34.1%.

Should I hold both HLAL and SPY?

HLAL and SPY have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between HLAL and SPY?

98.7% of HLAL's money is in holdings SPY also owns. 59.7% of SPY's is in holdings HLAL also owns. They hold 190 positions in common, counted across the 210 positions we hold weights for in HLAL and 504 in SPY.

Which pays a higher dividend, HLAL or SPY?

HLAL yields 0.44% while SPY yields 0.98%, so SPY currently pays the higher dividend yield.

Is SPY better than HLAL?

SPY has a lower expense ratio. HLAL led over 1Y, 5Y and the full window, SPY over 3Y. The two have moved almost in lockstep, correlation 0.97. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 58.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.