Point Bridge and ETF Series Solution, a white-label exchange traded fund provider, are crafting a pure play on President Donald Trump’s agenda, with an apt ticker symbol apropos of the “make America great again” slogan used during Trump’s White House bid.
The planned Point Bridge GOP Stock Tracker ETF (BATS: MAGA) will track companies seen as sympathetic to the Republican Party, reports Ryan Vlastelica for MarketWatch.
According to a recent Securities and Exchange Commission exemptive relief filing, MAGA will try to reflect the performance of the Point Bridge GOP Stock Tracker Index, which is comprised of companies whose employees and political action committees are highly supportive of Republican candidates for election to the United States Congress, the Vice Presidency or the Presidency and party-affiliated federal committees or groups that are subject to federal campaign contributions. MAGA will come with a proposed 0.72% expense ratio.
The index starts with a universe of S&P 500 companies and then screens components based on electoral campaign contribution data to eliminate those that have made aggregate reported political contributions of less than $25,000 across the two most recent election cycles. Companies are then weighted by total net dollars and net percentage of dollars given to Republican Candidates and Republican Committees. The index holds about 150 companies and is also equally weighted.
The Republican Party currently controls both the White House and both the House of Representatives and Senate in Congress, along with a majority of governorships and state legislatures.
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This new proposed ETF may be one way for investors to invest politically and express their political leanings through their investments.
“Elections have consequences. Are your investments aligned with your political beliefs? Through Political Responsible Investing you can now align your portfolio with your Republican vote,” according to Invest Politically.
According to Invest Politically, MAGA will be launched on September 7.
For more information on new fund products, visit our new ETFs category.