SPUS stock forecast, quote, news & analysis
The investment seeks to track the performance, before fees and expenses, of the S&P 500 Shariah Industry Exclusions Index... Show more
SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) Analysis: Navigating Sharia-Compliant U.S. Large-Cap Exposure
Key Takeaways
- SPUS provides passive exposure to approximately 200 Sharia-compliant stocks from the S&P 500, emphasizing low-leverage companies with debt-to-market-cap ratios below 30% per AAOIFI guidelines.
- Heavy technology sector weighting at over 56% drives structural alignment with innovation-led growth, complemented by healthcare and consumer cyclical allocations.
- Expense ratio of 0.45% supports cost-effective access to a values-aligned portfolio, with top holdings including NVDA, AAPL, and MSFT.
- Sharia screening excludes financial services, aerospace & defense, and certain data services, reducing universe but enhancing resilience in volatile markets.
- Growing demand for ethical investing positions SPUS amid rising Islamic finance assets, though concentration risks in tech warrant monitoring.
- Rebalancing follows the S&P 500 Sharia Industry Exclusions Index methodology, ensuring ongoing compliance and market-cap weighting.
SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) Overview
The SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) is a passively managed exchange-traded fund that seeks to track the S&P 500 Sharia Industry Exclusions Index before fees and expenses. This index comprises Sharia-compliant constituents of the S&P 500 Sharia Index, excluding sub-industries such as aerospace & defense, financial exchanges & data, and data processing & outsourced services. Companies must adhere to AAOIFI Sharia standards, including business activity screens and financial ratios like debt below 30% of market cap.
SPUS holds approximately 212 securities, providing diversified large-cap U.S. equity exposure. Top holdings as of recent data include NVDA (14.18%), AAPL (11.70%), MSFT (9.76%), GOOGL (6.00%), and AVGO (4.77%), representing over 57% of assets.
Sector allocations reflect tech dominance: Technology (56.07%), Healthcare (12.75%), Consumer Cyclical (8.52%), Industrials (6.13%), and Communication Services (6.06%). The expense ratio is 0.45%, with quarterly rebalancing aligned to the index methodology for compliance and representation.
Industry and Thematic Landscape
Sharia-compliant investing intersects ethical finance with global equity markets, screening out prohibited activities like interest-based finance while prioritizing low-debt, sustainable businesses. The broader Islamic finance sector manages over $5 trillion in assets, projected to reach $9.75 trillion by 2029, fueled by Muslim population growth, rising affluence in GCC and Asia-Pacific, and ESG convergence.
Key catalysts include regulatory harmonization in Saudi Arabia and UAE, sustainable sukuk issuance up 38% in 2025, and fintech platforms lowering entry barriers. Capital flows from sovereign wealth funds and retail investors target Sharia ETFs amid diversification from conventional assets. Macro factors like non-oil economic diversification in the Middle East bolster demand, though risks from AAOIFI Standard 62 adoption in 2026 could impact sukuk classification. Geopolitical stability and tech innovation further support structural tailwinds for compliant U.S. equities.
Performance and Positioning Snapshot
In recent market cycles, SPUS has mirrored large-cap growth trends, benefiting from its technology overweight amid AI and semiconductor rallies. Over the past year through early 2026, the ETF delivered strong returns, outpacing broader large-growth peers, driven by robust earnings from top holdings like NVDA and MSFT.
During sector rotations toward defensives in late 2025, SPUS exhibited resilience via healthcare exposure, though recent trading sessions reflected broader equity pullbacks tied to rate expectations. Its low-leverage focus has aided stability versus high-debt peers, positioning it well in macro shifts favoring quality growth amid persistent inflation data and geopolitical tensions.
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2026 Outlook and Key Factors to Monitor
Looking to 2026, SPUS remains anchored in U.S. large-cap dynamics, with structural drivers tied to technology innovation and healthcare advancements in its portfolio. The ETF’s Sharia screens favor low-debt firms, potentially offering buffers in high-rate environments or economic slowdowns, as global Islamic finance expands toward $6.1 trillion in assets amid rising MEA and Asia-Pacific flows.
Monitor earnings cycles for top holdings like NVDA and AAPL, where AI capex and consumer tech spending could sustain momentum. Policy shifts, including potential AAOIFI Standard 62 impacts on broader Islamic instruments and U.S. regulatory clarity on ESG, may influence capital allocation. Competitive pressures from peers like HLAL intensify, while expense ratio stability aids long-term positioning.
Macro risks encompass prolonged inflation, geopolitical tensions affecting energy allocations (3%), and tech concentration vulnerabilities. Sector trends toward sustainable growth and fintech integration in Islamic markets support inflows, balanced against U.S. equity valuations. Investors should track index rebalancing for compliance and quarterly Sharia reviews to gauge adaptability in evolving landscapes.
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.
Aroon Indicator for SPUS shows an upward move is likely
SPUS's Aroon Indicator triggered a bullish signal on June 04, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 401 similar instances where the Aroon Indicator showed a similar pattern. In of the 401 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for SPUS just turned positive on May 29, 2026. Looking at past instances where SPUS's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPUS advanced for three days, in of 359 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SPUS moved out of overbought territory on June 04, 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 54 similar instances where the indicator moved out of overbought territory. In of the 54 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPUS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SPUS broke above its upper Bollinger Band on June 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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Category LargeGrowth