MNZL — Manzil Russell Halal USA Broad Market ETF Review

MNZL (Manzil Russell Halal USA Broad Market ETF) launched in 2024 on NYSE Arca, making it the newest entrant in the US Shariah-compliant ETF market. The fund tracks the Russell IdealRatings Manzil Halal USA Broad Market Index, which starts with the Russell 1000 (large and mid-cap US stocks) and applies dual screening criteria.

What sets MNZL apart is its dual screening approach: standard AAOIFI-inspired Shariah screening (business activity exclusions + financial ratio tests) plus additional AFSC human rights screening that excludes companies involved in grave human rights violations, controversial weapons, and exploitative labor practices.

With $4.6M in AUM as of March 2026, MNZL is significantly smaller than established competitors HLAL ($727M) and SPUS ($178M). This means wider bid-ask spreads and potentially less liquidity for larger trades. However, its 0.40% expense ratio is the lowest among US-listed halal equity ETFs.

MNZL's first screening layer follows AAOIFI principles: excluding companies in prohibited sectors (conventional banking, alcohol, tobacco, gambling, weapons, pork) and applying financial ratio tests (debt-to-market-cap below 30%, interest-bearing securities below 30%, impure income below 5%).

The second screening layer applies AFSC (American Friends Service Committee) ethical criteria, which go beyond standard Shariah screening. This removes companies involved in grave human rights violations, controversial weapons (cluster munitions, landmines), military occupation, and exploitative labor practices.

The dual screening approach results in a slightly smaller universe than SPUS or HLAL, but provides investors with the most comprehensively screened US halal equity exposure available. Companies like certain defense contractors that might pass basic Shariah screens are excluded under the AFSC criteria.

MNZL, SPUS, and HLAL all target US equity exposure with Shariah screening, but differ in base index, screening methodology, and additional criteria. MNZL uses Russell 1000 + AAOIFI + AFSC (0.40% fee). SPUS uses S&P 500 + S&P Shariah methodology (0.45% fee). HLAL uses FTSE USA + Yasaar Limited certification (0.50% fee).

MNZL's main advantages: lowest fee (0.40%), broadest ethical screening (human rights overlay), and Russell 1000 base which includes mid-caps that the S&P 500-based SPUS excludes. Its main disadvantage is the smallest AUM ($4.6M vs $178M and $727M), which means less liquidity.

For investors who prioritize comprehensive ethical screening beyond Shariah compliance alone, MNZL is the most aligned choice. For investors prioritizing liquidity and established track record, HLAL or SPUS remain stronger options.