This study considers the performance of U.S. shariah compliant share indexes over the long

term. Despi te their relatively short empirical history, we re

construct shariah compliant index returns by mapping their monthly performance to well recognised systematic risk factors from 1927

1. The findings reveal that these indices are exposed to moderate mark et beta, large cap and growth stock risk factors. The long

term analysis suggests there are no significant performance differences between the returns from shariah stock indices and the broad U.S. market, even across different U.S. economic and monetary co nditions. The findings suggest that shariah compliant investors can deliver similar return and risk characteristics as broad U.S. stocks without compromising their faith based beliefs.