Halal S&P 500 Stocks
A complete list of S&P 500 companies that pass AAOIFI shariah screening. Every stock has been analysed across four criteria: permissible business activity, debt-to-market-cap ratio, interest income ratio, and cash-and-securities ratio. Only companies passing all four screens are listed below.
10
Halal stocks
6
Sectors covered
4
Screening criteria
Halal S&P 500 Stocks by Sector
10 S&P 500 companies currently pass all shariah criteria, spanning 6 sectors. Click any stock for its full screening report.
Technology
5 halal
Healthcare
1 halal
Consumer Cyclical
1 halal
Energy
1 halal
Automotive
1 halal
Consumer Staples
1 halal
What is the S&P 500?
The S&P 500 (Standard & Poor's 500) is a stock market index tracking the 500 largest publicly traded companies listed on US stock exchanges. It covers approximately 80% of the total US stock market capitalisation, making it the most widely followed equity benchmark in the world.
Companies in the S&P 500 span every major sector of the US economy — from technology giants like Apple, Microsoft, and NVIDIA to healthcare companies like Johnson & Johnson, consumer brands like Procter & Gamble, and industrial leaders like Caterpillar and Boeing.
For Muslim investors, the S&P 500 offers access to the world's most innovative and profitable businesses. However, not all 500 companies are shariah-compliant. Conventional banks, insurers, alcohol producers, and tobacco companies must be excluded. This page lists only those S&P 500 companies that pass our full four-factor halal screen.
How We Screen S&P 500 Stocks for Halal Compliance
Our screening methodology follows AAOIFI (Accounting and Auditing Organisation for Islamic Financial Institutions) standards — the same framework used by leading halal ETFs such as SPUS.
1. Business Activity
The company must not derive significant revenue from alcohol, gambling, tobacco, pork, weapons manufacturing, or conventional interest-based banking and insurance.
2. Debt Ratio ≤ 33%
Total debt divided by market capitalisation must be below 33%. Highly leveraged companies are excluded as their capital structure relies heavily on interest-bearing borrowing (riba).
3. Interest Income ≤ 5%
Interest income as a proportion of total revenue must not exceed 5%. This ensures the company does not earn a material amount of income from forbidden interest-based activities.
4. Cash & Securities ≤ 33%
Cash and short-term interest-bearing investments as a proportion of market cap must stay below 33%. Excessive idle cash in interest-bearing instruments is discouraged under Islamic finance.
Why Invest in Halal S&P 500 Stocks?
Long-term wealth building
The S&P 500 has historically delivered around 10% annualised returns over the long term. Even after removing haram sectors, halal S&P 500 portfolios — such as the SPUS ETF — have closely tracked or even outperformed the full index over multi-year periods.
Faith-aligned investing
Investing in halal stocks allows Muslim investors to build wealth without compromising their values. Your capital is not deployed in companies that profit from alcohol, gambling, riba, or other prohibited activities.
Access to world-class companies
Many of the world's most admired companies — Apple, Microsoft, NVIDIA, Salesforce, and hundreds more — pass shariah screens. You don't have to sacrifice quality to invest in line with your faith.
Sector diversification
With halal S&P 500 stocks spanning 6 sectors including Technology, Healthcare, Industrials, Consumer goods, and Real Estate, you can build a genuinely diversified portfolio without relying on conventional financial stocks.
Which S&P 500 Sectors Are Mostly Excluded?
Financial Services is the sector most heavily filtered out. Major banks (JPMorgan, Bank of America, Citigroup, Wells Fargo), investment banks (Goldman Sachs, Morgan Stanley), and conventional insurance companies (Travelers, Allstate) all fail the business activity screen because their core revenue comes from interest-based lending and insurance.
Consumer Staples loses several companies due to alcohol (Constellation Brands, Brown-Forman, Molson Coors) and tobacco (Altria, Philip Morris — though Philip Morris's heated tobacco transition is debated among scholars).
Consumer Discretionary excludes casino operators such as MGM Resorts and Las Vegas Sands due to gambling, and some restaurant chains due to significant alcohol revenue.
Defence contractors in the Industrials and Aerospace & Defence sector — such as Northrop Grumman, Raytheon Technologies, and L3Harris — are typically excluded by scholars who consider weapons manufacturing prohibited.
Frequently Asked Questions
Which S&P 500 stocks are halal?
Based on our AAOIFI-based shariah screening, 10 S&P 500 companies currently pass all four criteria: permissible business activity, debt-to-market-cap below 33%, interest income below 5% of revenue, and cash and interest-bearing securities below 33% of market cap. The full list is on this page, grouped by sector.
How are S&P 500 stocks screened for halal compliance?
We apply a four-step AAOIFI-based screen. First: business activity — excluding alcohol, gambling, tobacco, pork, weapons, and conventional banking. Second: debt-to-market-cap ratio below 33%. Third: interest income below 5% of total revenue. Fourth: cash and interest-bearing securities below 33% of market cap. A stock must pass all four to be listed here.
Is Apple (AAPL) halal to invest in?
Apple is generally considered halal by most shariah scholars. Its primary business — consumer electronics and software — is permissible. Apple's financial ratios typically fall within AAOIFI thresholds. Check the AAPL page on HalalStocks.co.uk for the latest screening result with current financial data.
Is Tesla (TSLA) halal?
Tesla is widely considered halal as an electric vehicle and clean energy company. Its business activity is permissible and it does not derive significant revenue from interest income. The key ratio to monitor is debt-to-market-cap, which varies with Tesla's stock price. See the TSLA page for the current result.
Are bank stocks like JPMorgan halal?
Conventional banking stocks such as JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) are generally considered not halal. Their core business is interest-based lending (riba), which is prohibited in Islamic finance. They also fail the interest income ratio screen. Muslim investors seeking financial sector exposure should consider shariah-compliant alternatives.
What percentage of the S&P 500 is halal?
Based on our current screening, approximately 2% of S&P 500 companies pass AAOIFI shariah criteria. This aligns with estimates from halal ETF providers like SP Funds (SPUS), which typically holds around 230 S&P 500 constituents after applying shariah screens.
Check Any Stock's Halal Status
Want to screen a specific stock not listed here? Use our free shariah stock screener — instant results for any US or UK listed company.