List of Halal Stocks in the S&P 500 - Musaffa Academy (2024)

Disclaimer: Please be advised that the information provided in this article is relevant as of the time of its composition. However, it is important to recognize that due to the periodic release of new financial reports on a quarterly basis, the status of the mentioned stocks may undergo changes. Therefore, readers are encouraged to exercise diligence and consult updated financial information before making any investment decisions.

As a Muslim investor, you may be wondering whether the stocks listed on S&P 500 are Halal or not. In this article, we will introduce 25 stocks of the S&P 500 and find out if they are halal or not.

What is the S&P 500? How Many Companies Are in the S&P 500?

The S&P 500 has been one of the most popular stock market indexes since its creation in 1957. TheS&P 500consists of 500 companies that are leaders within their industries in the US. Currently, there are 503 stocks because some of the companies in the index have multiple classes of equity shares, such as Alphabet (GOOG and GOOGL). Any company that wants to be included in S&P 500 needs to meet the particular criteria, which the index publishers determine. For instance, to join the S&P 500 index, a stock must be issued by a US company with a total market cap of at least $14.6 billion and a public float of 10% of outstanding shares.

The S&P 500 is a market-weighted index, and the larger the company’s market cap, the more valuable an individual company’s stock becomes, as it contributes significantly to the index’s overall return. Therefore, if a company with a smaller market is added or removed from the index, it will not have a substantial impact on the overall return of the index; but, if the index adds or removes any of the largest stocks of the index, it can have a very noticeable impact.

Top 25 Components by Halal Status in the S&P 500

As of Oct. 10, 2022, the top 25 S&P 500 holdings by their Halal Status:

1. Apple (AAPL)
2. NVIDIA Corp (NVDA)
3. Eli Lilly and Co (LLY)
4. Broadcom Inc (AVGO)
5. Exxon Mobil Corp (XOM)
6. Tesla Inc (TSLA)
7. Visa Inc (V)
8. Procter & Gamble Co (PG)
9. Mastercard Inc (MA)
10. Johnson & Johnson (JNJ)
11. Home Depot Inc (HD)
12. Merck & Co Inc (MRK)
13. Chevron Corp (CVX)
14. Coca-Cola Co (KO)
15. Qualcomm Inc (QCOM)
16. Salesforce Inc (CRM)
17. Linde PLC (LIN)
18. Adobe Inc (ADBE)
19. Cisco Systems Inc (CSCO)
20. Applied Materials Inc (AMAT)
21. Abbott Laboratories (ABT)
22. Texas Instruments Inc (TXN)
23. Danaher Corp (DHR)
24. Pfizer Inc (PFE)
25. Union Pacific Corp (UNP)

Are these 25 stocks of S&P 500 Halal?

According to Musaffa halal stock screener, the companies mentioned here pass the Shariah compliant criteria. You can see the list that presents which stocks are halal and not halal in the table below:

Musaffa employs the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) to screen the halal stocks. If you interested to know more Shariah compliant status of the S&P 500 companies, feel free to sign up atMusaffa.comto find the halal stocks you can invest in.

We also have article about the list of halal stocks in the DJIA and Nasdaq 100 that you might be interested. Visit Musaffa Academy to read more.