GET DAILY SIGNALSWahed FTSE USA Shariah ETF (HLAL): Shariah-Compliant Exposure to U.S. Tech Leaders
Key Takeaways
- HLAL tracks the FTSE Shariah USA Index, a principles-screened, market-cap-weighted basket of roughly 200 U.S. large- and mid-cap equities that comply with Islamic (Shariah) investment principles.
- Portfolio exposure is heavily concentrated in technology (about 56%), with meaningful weightings in communication services and healthcare, and zero allocation to financials.
- Over the trailing 30 days the fund has pulled back roughly 4.4%, while it remains modestly higher—approximately 2.3%—over the trailing quarter, reflecting a range-bound, tech-led trend.
- Index giants NVIDIA, Apple, and Microsoft dominate returns, making the fund highly sensitive to mega-cap technology leadership and semiconductor momentum.
- The fund is passively managed and non-diversified, with a net expense ratio of 0.50% and inception in July 2019.
Understanding the Wahed FTSE USA Shariah ETF (HLAL)
The Wahed FTSE USA Shariah ETF (HLAL) is a passively managed exchange-traded fund that seeks to track the total return performance of the FTSE Shariah USA Index. That benchmark selects common stocks of large- and mid-capitalization U.S. companies whose characteristics meet Shariah requirements and are consistent with Islamic principles as interpreted by subject-matter experts. At least 80% of the fund's assets are typically invested in index components.
The fund holds approximately 200 securities and is considered non-diversified, meaning a larger share of assets can be concentrated in a limited number of issuers. Its largest positions include NVIDIA (NVDA), Apple (AAPL), and Microsoft (MSFT), followed by Alphabet (GOOGL), Broadcom (AVGO), Meta Platforms (META), Micron Technology (MU), Tesla (TSLA), and Advanced Micro Devices (AMD). Technology represents more than half of the portfolio, communication services about 14%, and healthcare roughly 10%, with smaller stakes in industrials, energy, and consumer discretionary. Financials are effectively excluded because the Shariah screen removes interest-based businesses. The fund carries a net expense ratio of 0.50%. I also checked the holdings breakdown using Tickeron’s AI tools to confirm the sector weights.
The Broader Themes Behind HLAL
HLAL operates at the intersection of two broad themes: a mega-cap, technology-led U.S. equity tilt and Shariah-compliant (Islamic) screening. Because conventional banks, insurers, and many leveraged financial firms are excluded under Shariah guidelines, the fund structurally overweights the information technology and communication services sectors that dominate the modern U.S. large-cap benchmark.
The current market environment remains shaped by investor focus on artificial intelligence infrastructure, semiconductor demand, and the earnings durability of the largest platform and cloud companies. Interest-rate expectations and inflation trends continue to influence valuations for long-duration growth stocks, while periodic sector rotation between technology leadership and value-oriented cyclical areas can drive near-term volatility in a fund with this level of concentration. These macroeconomic and thematic forces, rather than idiosyncratic fund events, largely determine HLAL's behavior.
Recent Performance and Current Positioning
Over the trailing 30 days, HLAL has declined roughly 4.4%, while it remains up approximately 2.3% over the trailing three-month period. The path has been range-bound rather than sharply trended: the fund traded near $75 in mid-to-late September, softened toward the low-$70s in October, and has generally held within a narrow band tied to large-cap technology momentum.
This positioning is a direct reflection of the portfolio. With NVIDIA, Apple, and Microsoft collectively accounting for more than a quarter of assets, the fund's day-to-day performance closely tracks mega-cap technology and semiconductor sentiment. Strength in AI-related chipmakers and cloud platforms has been a primary support, while profit-taking in richly valued growth names and shifts in interest-rate expectations have periodically weighed on the fund. Earnings seasons among the largest holdings, sector rotation between growth and cyclicals, and investor positioning in index-tracking products all influence short-term moves. From what I see, the concentration makes close monitoring of those mega-caps essential.
2026 Outlook and Key Factors to Monitor
Looking ahead, HLAL's trajectory is likely to remain tied to the structural factors governing U.S. large-cap technology. Investors should monitor the path of interest rates and inflation, as both influence the discount rates applied to high-growth earnings. The AI investment cycle, semiconductor capital spending, and the earnings momentum of the largest holdings will be central to portfolio returns, as will any broadening or narrowing of market leadership beyond mega-cap names.
Sector outlook for technology and communication services, regulatory and policy developments affecting large platforms, and capital flows into passive equity products are additional factors worth tracking. The fund's absence of financials and its concentrated mega-cap exposure create both opportunity and risk: it can outperform when technology leadership is strong, but it offers less diversification than broader benchmarks during cyclical or value-led rotations. These structural considerations, rather than short-term price moves, will likely define the fund's risk-and-return profile through 2026. I’m watching the AI cycle closely here.
Using Tickeron’s AI Screener for Deeper Analysis
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. The platform helps scan thousands of securities with technical indicators, fundamentals, and AI signals, which I find useful when evaluating concentrated funds like HLAL or comparing sector exposure. It offers a systematic way to filter by performance and trends as part of my regular research process.
Disclaimer
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Contributor
Financial analyst and market blogger with expertise in equity research, fundamental analysis, and macroeconomic trends. I regularly publish coverage on individual stocks, ETFs, and sector developments — combining rigorous financial analysis with clear, engaging writing for a broad investment audience.
HLAL in downward trend: price dove below 50-day moving average on October 29, 2026
HLAL moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend. In 34 of 40 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 85%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for HLAL moved out of overbought territory on October 08, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 27 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HLAL as a result. In 58 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for HLAL turned negative on October 13, 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 54 similar instances when the indicator turned negative. In 42 of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
The 10-day moving average for HLAL crossed bearishly below the 50-day moving average on October 27, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 15 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 73%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HLAL 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%.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 51 of 54 cases where HLAL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
Following a +1.22% 3-day Advance, the price is estimated to grow further. Considering data from situations where HLAL advanced for three days, in 283 of 344 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
HLAL 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 328 of 364 cases where HLAL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
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