HLAL Wahed FTSE USA Shariah ETF

Wahed FTSE USA Shariah ETF (HLAL) currently reports 207 stock positions (subject to change), placing it in the widely spread range by holdings breadth. The top line-up is AAPL (13.26%), MSFT (9.64%), GOOGL (5.88%), with AAPL as the largest single weight at 13.26%. Together, the top three holdings account for 28.78%, which points to a relatively flat weight distribution where no single cluster of names dominates outcomes. The weight distribution suggests a portfolio designed to capture thematic upside while avoiding excessive dependence on any single name outside the largest positions.

Assessing the quality of returns on invested capital, ROIC is 32.59%, WACC is 9.67%, and the economic spread is 22.91%. On balance, the portfolio's businesses are clearing their capital cost hurdle with room to spare. Supporting metrics show ROE at 45.59% and ROA at 12.26%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio with credible compounding capacity if current operating execution persists.

The portfolio's current market valuation reflects trailing P/E of 28.90, forward P/E of 21.38, PEG of 2.00. The trailing-to-forward compression is present but not extreme — consistent with a portfolio where earnings are expected to grow at a steady rather than exceptional pace. The PEG reads as moderate — investors are paying a fair but not discounted price for the growth embedded in current estimates. The current ratio of 1.71 is in an acceptable range, reflecting reasonable short-term financial health. Across multiples and liquidity, the portfolio is priced in a way that reflects current expectations reasonably well — leaving limited room for error, but also limited near-term downside from valuation compression alone.

Looking at margins from gross to free cash flow, gross margin sits at 54.56%, operating margin at 27.52%, and free cash flow margin at 20.72%. Gross margins are constructive — not exceptional, but indicative of businesses with reasonable unit economics. At this level, operating margins reflect businesses that are scaling with discipline without dramatic cost pressure. The portfolio's cash conversion is solid — a sign that operating profits are translating into real liquidity at the fund level. All three margin layers are constructive, pointing to a portfolio where quality of earnings is high and cash generation is reliable.

Projected 12-month EPS growth of 35.2% adds a powerful forward signal — analyst consensus expects earnings to accelerate materially, which, if delivered, could make current multiples look increasingly modest. Turning to growth and analyst expectations, TTM revenue growth of 16.79% pointing to stable operational progress without outsized acceleration, while the estimated 12-month price change of 21.78%, where target prices point to mid-range appreciation potential from current levels. The distinction matters: revenue growth tells you what the businesses are doing, price targets tell you what analysts think the market will pay for it. Ultimately, the alignment between revenue momentum and analyst targets will depend on execution quality and the broader rate and sentiment environment. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The quantitative profile, taken as a whole, is above average on virtually every dimension that matters for long-term return generation.

This assessment reflects quantitative metrics only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results.