Election Day is here, and the ETF industry has not disappointed. Today sees the launch of an ETF designed to appeal to left-leaning investors, while last week saw the launch of a conservative values fund.
The American Conservative Values ETF (ACVF) comes with an expense ratio of 0.75% and lists on the NYSE Arca. It rolled out on Oct. 29.
Today, the DEMZ Political Contributions ETF (DEMZ) launched on the Nasdaq stock market. It carries an expense ratio of 0.45%.
These two funds are very different. ACVF is actively managed by Ridgeline Research and seeks to invest in large-cap U.S. companies that support conservative values, focusing on individual liberty, limited government, free enterprise and the concept of American exceptionalism. It avoids companies that “disproportionately” support liberal leaning causes, organizations and candidates, its prospectus says, focusing instead on companies that emphasize maximizing shareholder value.
Meanwhile, DEMZ is advised by Reflection Asset Management and focuses on political contributions. It is index focused and selects its holdings from the components of the S&P 500 Index. It targets companies that give at least 75% of their political donations (including those of their executives) to causes and candidates aligned with the Democratic Party. The fund’s index is generally expected to include 40-60 companies, according to its prospectus.
The results of the election ending today could determine the success or failure of these dueling ETFs. However, it is virtually impossible to know how.
Contact Heather Bell at [email protected].