Before SPUS existed, before HLAL existed, before anybody in mainstream American finance had heard of Shariah-compliant investing, there was Amana. And the Amana Growth Fund (AMAGX) has been running continuously since February 1994.

That's over three decades of track record. In the mutual fund world, that's basically forever. Most funds don't make it five years. AMAGX has been screening US equities for Muslim investors since Bill Clinton's first term.

Let's actually look at whether it still deserves a place in your portfolio.

The Saturna Story

Amana Mutual Funds is the faith-based product line of Saturna Capital, a small-to-mid-sized asset manager based in Bellingham, Washington. Saturna was founded in 1989 by Nick Kaiser, a guy who converted to Islam and decided there needed to be a professionally managed halal option for American Muslim investors.

Nick launched the Amana Income Fund in 1986 and the Amana Growth Fund in 1994. Nick passed away in 2022, but his son Scott Kaiser continues to lead Saturna, and the firm remains independent and privately held. That continuity of ownership matters because it means nobody has bought out Amana and stripped it down for parts.

What AMAGX Actually Does

AMAGX is an actively managed mutual fund. That's a key distinction from SPUS or HLAL. The Amana team doesn't just track an index. They pick stocks.

The fund's stated objective is long-term capital growth through investment in common stocks that comply with Islamic principles. The portfolio managers apply Shariah screens (the same core rules about business activity and financial ratios) but then they also make active decisions about which companies to own and how much to own of each.

That active management costs more than passive screening, which is why the expense ratio is higher than passive halal ETFs. But it also means AMAGX isn't locked into a mechanical rebalance schedule and can make judgment calls about valuation, quality, and long-term prospects.

The Portfolio

AMAGX is a concentrated fund. As of early 2026, it typically holds 30 to 45 names. That's way fewer than SPUS (210-ish) or HLAL (200-ish). This is intentional. The Saturna team has always run concentrated portfolios because their philosophy is that you should only own a company if you actually have conviction in it.

Top holdings historically include: Eli Lilly, Apple, Microsoft, Nvidia, ASML, Intuit, Taiwan Semiconductor, Church & Dwight, Costco, and Linde. Notice a few things: the fund holds some mid-cap names you don't see in index-based halal funds (Church & Dwight, Intuit at various times), plus international names like TSMC and ASML because Amana can buy foreign stocks when they look attractive, unlike the US-only index ETFs.

Sector exposure is roughly: 35 to 42 percent technology, 20 to 28 percent healthcare, 10 to 14 percent industrials, 8 to 12 percent consumer staples, with smaller slices in materials, consumer discretionary, and communication services.

Expense Ratio: 0.93 Percent (Investor Class)

This is where AMAGX loses points with cost-conscious investors. The Investor share class (AMAGX) charges 0.93 percent per year. The Institutional share class (AMIGX) charges 0.81 percent. That's nearly double what SPUS or HLAL charge and roughly 30 times what vanilla S&P 500 funds charge.

Why so expensive? Active management is expensive. You're paying for portfolio managers, research analysts, compliance staff, and a Shariah advisory board. Saturna is a small firm without the scale of BlackRock or Vanguard. When you spread fixed costs over a few billion dollars of AUM instead of a few trillion, your expense ratio is going to be higher.

The honest question: is the 0.93 percent worth it? Over long time frames, AMAGX has sometimes beaten the halal index funds and sometimes lagged. We'll get to the numbers in a second.

AUM: Around 3 Billion Dollars

AMAGX is actually the largest halal mutual fund in the US by a wide margin. As of early 2026, it's running around 3 billion dollars in assets. That's significantly more than SPUS and about four times the size of HLAL.

How does an "old" mutual fund outsize newer ETFs? Simple: AMAGX has been compounding contributions from the same loyal investor base for over 30 years. Many of those investors are in 401(k) plans or advisor model portfolios where the fund has a sticky placement.

Performance History

Here's the long track record. Remember these are estimates based on public reporting and typical benchmark tracking.

One-year total return through early 2026: approximately 20 to 25 percent. AMAGX participated in the tech rally but its active management sometimes keeps it from getting the full upside of a pure beta fund.

Three-year annualized: approximately 13 to 16 percent.

Five-year annualized: approximately 12 to 14 percent.

Ten-year annualized: approximately 12 to 14 percent.

Since inception (February 1994): approximately 10 to 11 percent annualized. That's roughly in line with the S&P 500 over the same period, which is honestly impressive for an actively managed fund with a 0.93 expense ratio and halal screening constraints.

The fund has had periods of outperformance (particularly 2009 through 2013) and periods of underperformance (particularly 2021 through 2023). That's normal for active management. What matters is the long-term track record, and AMAGX's 30-year track record is respectable.

What Makes AMAGX Different from SPUS

A few meaningful differences. AMAGX is concentrated (30 to 45 names vs 200-plus in SPUS). AMAGX can hold non-US stocks when the PMs see opportunity. AMAGX is actively managed and can adjust to market conditions. AMAGX is mutual fund structure, which means it trades once a day at NAV (not intraday like an ETF).

The mutual fund structure also means AMAGX distributes capital gains from time to time, which creates tax friction in taxable accounts. In retirement accounts this doesn't matter. In a taxable brokerage, you might prefer the tax efficiency of an ETF.

Morningstar and Lipper Recognition

AMAGX has historically earned 4 or 5 star ratings from Morningstar in the Large Growth category. Lipper has repeatedly given the fund awards for risk-adjusted returns within its peer group. The fund shows up in "best of" lists for socially responsible investing pretty regularly.

Is this meaningful? Somewhat. Morningstar ratings are backward-looking and not predictive, but they do filter out funds that have been consistent underperformers. AMAGX has been consistent enough that it keeps appearing on those lists.

The Dividend and Purification Situation

AMAGX pays distributions annually, typically in December. Yield is approximately 0.4 to 0.7 percent, which is low because the fund is growth-oriented and doesn't target dividend-paying companies specifically.

Saturna publishes annual purification guidance for Muslim investors. The amount is typically tiny, under 0.1 percent of distributions, but you should account for it if you're being strict.

Minimum Investment

Investor class (AMAGX) requires a 250 dollar minimum to open, 25 dollars for IRAs. That's very low compared to most mutual funds. Saturna has always been accessible to smaller investors because that's the audience they serve.

Institutional class (AMIGX) requires 100,000 dollars minimum. If you're opening AMIGX, you probably have an advisor who handles the details.

Who AMAGX Makes Sense For

Muslim investors who value active management and want a portfolio manager actively selecting stocks rather than just tracking an index. Retirement account holders (IRA, 401k, 403b) who want halal exposure and don't care about intraday liquidity. People who already trust Saturna as a firm and want their faith-based allocation under one roof.

Who Should Look Elsewhere

Cost-conscious investors who think 0.93 percent is too much to pay for active management. Taxable account investors who want the tax efficiency of an ETF structure. People who want broader diversification than a 30-to-45-name concentrated fund provides.

The Honest Trade-Off

The real question with AMAGX is whether active management plus halal screening is worth 44 basis points more than SPUS or HLAL. Over the past decade, the answer has been "sometimes yes, sometimes no." AMAGX has beaten the halal ETFs in some periods and lagged in others. The cumulative difference over five years is usually within plus or minus 2 percent in either direction.

If you're a "trust the process" kind of investor and you believe in concentrated quality investing, AMAGX is a defensible choice. If you're a "cost matters most" kind of investor, the halal ETFs are cheaper and give you broader exposure.

Bottom Line

AMAGX is the granddaddy of American halal investing. It was built for Muslim investors before there was much of a market for Muslim investors, and it's still standing after 30-plus years of operation. The fund isn't cheap, but it's genuinely well-managed, it has the longest track record in the category, and Saturna has earned its reputation for taking the mandate seriously.

If you're building a long-term halal portfolio and you want one actively managed core holding alongside your index ETFs, AMAGX is a very reasonable pick. Just understand what you're buying: concentration, active management, mutual fund structure, and a premium expense ratio.

Saturna Amana Growth Fund (AMAGX): The Original US Halal Mutual Fund