GET DAILY SIGNALSSPWO vs UMMA: Weighing Two Shariah-Compliant ETFs for Ex-U.S. Exposure
Key Takeaways
- Overlapping mandate, different mechanics: Both funds are Shariah-compliant, ex-U.S. equity ETFs with heavy technology weightings, but SPWO is a passive index tracker while UMMA is actively managed.
- Cost advantage: SPWO carries a 0.55% expense ratio versus UMMA's 0.65%, a meaningful gap for cost-conscious long-term investors.
- Breadth vs. concentration: SPWO holds roughly 400 securities, while UMMA holds about 95, giving SPWO a wider diversification profile and UMMA more concentrated exposure to its largest names.
- Geographic tilt: SPWO leans more heavily toward emerging Asia (notably Taiwan), while UMMA skews toward developed markets, led by Japan and South Korea.
- Shared risk driver: Both funds are highly sensitive to the semiconductor cycle, since Taiwan Semiconductor Manufacturing, Samsung, and SK hynix rank among their top holdings.
- Structural nuance: UMMA is a non-diversified, active fund that additionally screens for ESG (environmental, social, and governance) risk, distinguishing it from SPWO's rules-based index approach.
Introduction to These Competing Funds
Values-driven and faith-based investing has grown into its own ETF niche, and SPWO and UMMA highlight the differences within it. Both target Shariah-compliant equity exposure outside the United States, so they compete for the same investors. They reach that goal through distinct methods, costs, and geographic focuses. The key question for anyone considering these funds is whether a low-cost, passive, and broadly diversified option like SPWO or a more concentrated, actively managed approach with ESG screening like UMMA better matches a given portfolio. This comparison looks at the structural differences, sector exposures, and positioning that shape how each fund performs.
A Closer Look at SPWO
SPWO is a passively managed fund from SP Funds that tracks the S&P DM Ex-U.S. & EM 50/50 Shariah Index. The benchmark applies rules-based screens for Shariah compliance and diversification caps across developed and emerging markets outside the U.S. The fund launched in December 2023 and carries a net expense ratio of 0.55%. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The portfolio includes roughly 400 holdings with a strong technology tilt that accounts for nearly half of assets. Top positions include TSM (Taiwan Semiconductor Manufacturing), Samsung Electronics, SK hynix, ASML, and BABA (Alibaba). Beyond technology, healthcare, industrials, and consumer discretionary make up the rest. Geographically, Taiwan leads, followed by South Korea, China, Switzerland, and Japan. As a modified market-cap-weighted, non-diversified fund, SPWO delivers broad, rules-based access to global ex-U.S. equities through a Shariah lens.
Understanding UMMA
UMMA is an actively managed ETF from Wahed Invest that launched in January 2022. It aims for long-term capital appreciation by investing in global equities outside the U.S. that meet Shariah requirements, as interpreted by specialists. While it references the Dow Jones Islamic Market International Titans 100 Index loosely, UMMA is not a strict tracker and adds ESG risk screening. Its net expense ratio is 0.65%.
The portfolio is more concentrated with about 95 securities. Top holdings include Samsung Electronics, SK hynix, TSM, ASML, Constellation Software, Infineon Technologies, and AZN (AstraZeneca). Technology dominates, followed by healthcare and consumer staples. Japan, South Korea, Switzerland, and Taiwan lead the geographic allocation, showing a developed-market tilt stronger than SPWO’s. As a non-diversified, active fund, UMMA provides a curated, concentrated view of Shariah-compliant international equities.
The Industry and Thematic Context
Both funds sit in the Shariah-compliant, ex-U.S. equity space, which continues to draw interest from investors wanting alignment between values and portfolios. Two main forces shape this area: the global semiconductor cycle and how non-U.S. equities perform relative to the U.S. market.
The heavy technology weighting ties both funds closely to demand for artificial intelligence hardware, memory chips, and advanced equipment. Names such as TSMC, Samsung, and SK hynix sit at the center, so both ETFs feel the effects of the same earnings cycles and capital-expenditure trends. Currency moves, especially the U.S. dollar, and regional monetary policy also affect returns. Regulatory and geopolitical issues, including trade policy around semiconductor supply chains, remain important risks for both portfolios.
Performance and Positioning Side by Side
Because both funds share heavy technology and semiconductor exposure, their performance has moved in broadly similar directions in recent months and cycles, driven by overlapping top holdings. Structural differences still shape their relative positioning, however.
SPWO’s broader portfolio and lower expense ratio give it an edge in cost efficiency and diversification, which can help limit single-stock risk even with its sizable Taiwan Semiconductor position. UMMA’s concentrated, active construction can amplify the impact of its top names and creates slightly different sector and country tilts, including more exposure to Japan and Switzerland. In recent periods the shared technology bias has made both more volatile than a broad international equity benchmark, with relative results tracking the health of the global chip sector, earnings momentum among large technology firms, and shifts in interest-rate expectations.
My Take on the Comparison
Based on the structural factors, I think SPWO comes out ahead in a direct comparison. The passive fund offers a lower expense ratio, a much broader and more diversified portfolio, and similar thematic exposure to the semiconductor-driven growth that has supported both products. Its rules-based construction tends to deliver more consistent exposure and lower concentration risk than UMMA’s narrower, actively managed approach. While UMMA’s ESG overlay and developed-market tilt may suit certain preferences, SPWO’s combination of cost efficiency, diversification breadth, and comparable sector momentum makes it the more structurally sound choice in most environments.
Using Tickeron’s AI Screener for Deeper Research
When I want to go beyond top-level fund profiles and dig into more granular, data-driven ideas, Tickeron’s AI Screener serves as a helpful AI-powered tool for filtering stocks and ETFs by technical patterns, fundamentals, trend strength, volatility, and signals. It lets users scan thousands of securities with customizable criteria such as industry, market cap, technical indicators, price patterns, and performance metrics. The screener supports identifying trade ideas and emerging opportunities more efficiently. I find it useful for refining searches that align with a particular strategy.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
UMMA's Stochastic Oscillator remains in oversold zone for 10 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where UMMA's RSI Indicator exited the oversold zone, 19 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 86%.
Following a +1.59% 3-day Advance, the price is estimated to grow further. Considering data from situations where UMMA advanced for three days, in 240 of 280 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
UMMA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 273 of 306 cases where UMMA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 89%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on UMMA as a result. In 50 of 67 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 75%.
The Moving Average Convergence Divergence Histogram (MACD) for UMMA turned negative on October 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 35 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
UMMA moved below its 50-day moving average on October 08, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for UMMA crossed bearishly below the 50-day moving average on October 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 71%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UMMA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
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