List of Halal Stocks in the S&P 500

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 the top 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. The S&P 500 consists 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 Market Cap in the S&P 500

As of Oct. 10, 2022, the top 25 S&P 500 holdings by their weighting in the index:

1. Apple (AAPL): 6.99%
2. Microsoft (MSFT): 5.63%
3. Amazon (AMZN): 3.32%
4. Tesla (TSLA): 1.96%
5. Alphabet Class A (GOOGL): 1.93%
6. Alphabet Class C (GOOG): 1.71%
7. Berkshire Hathaway Class B (BRK.B): 1.59%
8. UnitedHealth Group (UNH): 1.54%
9. Johnson & Johnson (JNJ): 1.39%
10. Exxon Mobil (XOM): 1.36% 
11. JPMorgan Chase (JPM): 1.01%
12. Meta (META), formerly Facebook, Class A: 1.01%
13. Visa Class A (V): 0.98%
14. Procter & Gamble (PG): 0.97%
15. NVIDIA (NVDA): 0.96%
16. Home Depot (HD): 0.96%
17. Chevron Corporation (CVX): 0.93%
18. Eli Lilly (LLY): 0.84%
19. Mastercard Inc. Class A (MA): 0.82%
20.  AbbVie Inc. (ABBV): 0.81%
21. Pfizer (PFE): 0.77%
22.  Merck (MRK): 0.76%
23.  PepsiCo (PEP): 0.73%
24.  Bank of America (BAC): 0.71%
25. Coca-Cola Company (KO): 0.70%

Are these the top 25 stocks of S&P 500 Halal?

According to Musaffa halal stock screener, 15 of the 25 companies mentioned above pass the Shariah compliant criteria. You can see the list that presents which stocks are halal and not halal in the table below:

	Name	Ticker	Market Cap	Shariah Compliance Status	Ranking
1	Apple	AAPL	2.448T	Halal	1
2	Microsoft	MSFT	1.81T	Doubtful	–
3	Amazon	AMZN	1.229T	Doubtful	–
4	Tesla	TSLA	702.331B	Halal	2
5	Alphabet Class A	GOOGL	1.366T	Doubtful	–
6	Alphabet Class C	GOOG	1.366T	Doubtful	–
7	Berkshire Hathaway Class B	BRK.B	638.144B	Not Halal	–
8	UnitedHealth Group	UNH	505.313B	Not Halal	–
9	Johnson & Johnson	JNJ	448.827B	Halal	4
10	Exxon Mobil	XOM	441.27B	Halal	1
11	JPMorgan Chase	JPM	359.904B	Not Halal	–
12	Meta	META	369.565B	Doubtful	–
13	Visa Class A	V	409.638B	Halal	4
14	Procter & Gamble	PG	310.099B	Halal	4
15	NVIDIA	NVDA	330.464B	Halal	5
16	Home Depot	HD	297.148B	Halal	4
17	Chevron Corporation	CVX	342.413B	Halal	2
18	Eli Lilly	LLY	333.806B	Halal	4
19	Mastercard Inc. Class A	MA	300.939B	Halal	5
20	AbbVie Inc.	ABBV	264.897B	Not Halal	–
21	Pfizer	PFE	255.867B	Halal	2
22	Merck	MRK	247.527B	Halal	3
23	PepsiCo	PEP	245.604B	Halal	3
24	Bank of America	BAC	283.985B	Not Halal	–
25	Coca-Cola Company	KO	254.937B	Halal	2

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 at Musaffa.com to 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.