SP Funds S&P 500 Sharia Industry Ex ETF (SPUS) (2024)

SP Funds S&P 500 Sharia Industry Ex ETF (SPUS) is a passively managed U.S. Equity Large Growth exchange-traded fund (ETF). SP Funds launched the ETF in 2019.

The investment seeks to track the performance, before fees and expenses, of the S&P 500 Shariah Industry Exclusions Index. The index is composed of the constituents of the S&P 500® Shariah Index other than those from the following sub-industries: Aerospace & Defense, Financial Exchanges & Data, and Data Processing & Outsourced Services. The manager attempts to invest all, or substantially all, of its assets in the component securities that make up the index. Under normal circ*mstances, at least 80% of the fund's total assets will be invested in the component securities of the index. It is non-diversified.

There are 3 members of the management team with an average tenure of 3.78 years: Michael Venuto (2021), Charles Ragauss (2019) and Naushad Virji (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: S&P 500 Shariah TR USD index with a weighting of 100%. SP Funds S&P 500 Sharia Industry Ex ETF has 200 securities in its portfolio. The top 10 holdings constitute 50.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

SP Funds S&P 500 Sharia Industry Ex ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. SP Funds S&P 500 Sharia Industry Ex ETF has 0.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.1% There is 0.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). SP Funds S&P 500 Sharia Industry Ex ETF has 1.6% of the portfolio in cash.

SP Funds S&P 500 Sharia Industry Ex ETF has a trailing dividend yield of 0.8%, which is above the 0.5% category average. The fund normally distributes its dividend income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

High portfolio turnover can translate to higher expenses and lower aftertax returns. SP Funds S&P 500 Sharia Industry Ex ETF has a portfolio turnover rate of 5%, which indicates that it holds its assets around 0.2 years. By way of comparison, the average portfolio turnover is 66% for the Large Growth category.

Recently, in the month of February 2024, SP Funds S&P 500 Sharia Industry Ex ETF returned 6.2%, which earned it a grade of D, as the Large Growth category had an average return of 7.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about SP Funds S&P 500 Sharia Industry Ex ETF, including its riskiness, submit your email to unlock the rest of the article.

A basic investment concept is that risk should be rewarded. Standard deviation measures the degree of variation in return experienced relative to the average return for an ETF. It notes the recent volatility of the ETF but does not explain the elements impacting the volatility. For example, portfolio concentration or exposure to foreign investments can impact the volatility and should be examined to gain an understanding of the ETF.

The total risk index relates the volatility of the ETF to the volatility of all ETFs. It can help you understand the volatility of an ETF across all categories. Ratios above 1.00 indicate higher risk than average. SP Funds S&P 500 Sharia Industry Ex ETF has an average total risk index of 1.30 because of its standard deviation of 19.4%.

The category risk index relates the volatility of an ETF to the average volatility for ETFs in the same investment category. SP Funds S&P 500 Sharia Industry Ex ETF has a below average category risk of 0.89, giving it a category risk grade of B. Letter grades of A, B, C, D and F are based upon these relative rankings.

To learn more about this ETF and get analysis on hundreds of other ETFs as well as thousands of stocks and mutual funds, sign up for AAII today! Your membership comes with access to our proprietary A+ Investor data suite, a market-beating model portfolio and other investment discovery tools to help you outperform the market. Learn more and sign up here: https://invest.aaii.com/membership.

Already an AAII member? Sign in