List of Halal Stocks in the S&P 500

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:

 NameTickerMarket CapShariah Compliance StatusRanking
1AppleAAPL2.448THalal1
2MicrosoftMSFT1.81TDoubtful –
3AmazonAMZN1.229TDoubtful –
4TeslaTSLA702.331BHalal2
5Alphabet Class AGOOGL1.366TDoubtful –
6Alphabet Class CGOOG1.366TDoubtful –
7Berkshire Hathaway Class BBRK.B638.144BNot Halal –
8UnitedHealth GroupUNH505.313BNot Halal –
9Johnson & JohnsonJNJ448.827BHalal4
10Exxon MobilXOM441.27BHalal1
11JPMorgan ChaseJPM359.904BNot Halal –
12MetaMETA369.565BDoubtful –
13Visa Class AV409.638BHalal4
14Procter & GamblePG310.099BHalal4
15NVIDIANVDA330.464BHalal5
16Home DepotHD297.148BHalal4
17Chevron CorporationCVX342.413BHalal2
18Eli LillyLLY333.806BHalal4
19Mastercard Inc. Class AMA300.939BHalal5
20AbbVie Inc.ABBV264.897BNot Halal –
21PfizerPFE255.867BHalal2
22 MerckMRK247.527BHalal3
23 PepsiCo PEP245.604BHalal3
24 Bank of America BAC283.985BNot Halal –
25Coca-Cola CompanyKO254.937BHalal2
Data as of October 2022

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.