The Standard and Poor’s 500, or simply the S&P 500, is a stock market index comprising the largest 500 companies listed on stock exchanges in the United States.
The S&P is one of the most commonly followed equity indices in the world with trillions of dollars in assets tied to the performance of this index.
For your convenience, Practical Islamic Finance assembled a portfolio of 10 of the largest companies from the S&P 500 that we are comfortable investing in from a halal perspective.
Here’s how PIF’s Halal version of the S&P stacks up against the S&P itself…
5-Year Historical Return Comparison (Jan 2016 – Jun 2021)
The below historical 5-year return does not include dividend payouts or reinvestment, it only accounts for capital appreciation.
|Initial Balance||Final Balance||CAGR||Standard Deviation||Best Year||Worst Year||Sharpe Ratio|
|PIF’s Halal version of S&P||$10,000||$93,933||50.27%||27.19%||172.27%||5.13%||1.6|
CAGR = Compound Annual Growth Rate
The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance.
The Sharpe ratio represents the additional amount of return that an investor receives per unit of increase in risk. The higher the Sharpe ratio the better.
If you’re in the U.S. you can invest directly in our Halal version of the S&P portfolio here (affiliate link)
Outside the U.S. you can assemble the portfolio using the brokerage of your choosing.
|Holding #||Company Name||Ticker Symbol||Weight in Portfolio|
|3||Home Depot, Inc.||HD||11%|
|6||Cisco Systems, Inc.||CSCO||8%|
|8||Verizon Communications Inc||VZ||8%|
|9||Texas Instruments Inc.||TXN||6%|
Before Investing, Important Disclaimers
Past performance is no guarantee of future results, which may vary.
Investing involves risk, including possible loss of principal.
The aforementioned returns do not reflect trading costs, transaction fees, or taxes.
The information on this page comes from a variety of sources we consider reliable, but we do not represent that the information is accurate or complete.
Nothing on this page is meant to constitute investment advice or recommendation, it is solely presented for informational purposes, and is not an offer to buy or sell any securities.