MAGA, DEMZ Tally Wins on Election Day

Politically affiliated ETFs jumped on the day voters went to the polls.

Reviewed by: Shubham Saharan
Edited by: Shubham Saharan

As Democrats and Republicans battled for seats in Congress on Tuesday, the exchange-traded funds that correspond to both political parties’ viewpoints were also racing for returns.  

Republicans are projected to retake control of the House of Representatives, according to recent polls, while the U.S. Senate, narrowly controlled by Democrats, is still up for grabs. And while voters may bemoan potential political gridlock, that doesn’t mean market performance is set for a downturn. 

“It’s no exaggeration to say that midterm elections are one of the best historic buy signals for equities we have,” Jim Reid, global head of credit strategy at Deutsche Bank, said in a note to clients on Tuesday. 

The left-leaning Democratic Large Cap Core ETF (DEMZ) soared as much as 4.7% during the trading day Tuesday, according to data, while the right-leaning Point Bridge America First ETF (MAGA)  inched up 1.1%. The S&P 500 rose 0.6% during midday trading.  

DEMZ, which has $20.4 million in assets under management, is comparable to the SPDR S&P 500 ETF Trust (SPY), but only includes companies that have made over 75% of their political contributions to democratic causes and candidates. Meanwhile, MAGA, which has $15 million in AUM, mainly invests in companies whose employees and political action committees support Republican candidates and groups.  


Source: Bloomberg


Volumes spiked for both funds ahead of voting day, as MAGA drew in $15,700 on Monday, more than sixfold the $2,500 pulled the day before, Yahoo Finance data shows.  

“Historically, during midterm elections, the broader U.S. equity market has, on average, reacted positively to the reigning political party's ability to retain its position in both chambers of Congress,” Abhishek Gupta, an executive director at MSCI Research, wrote in a statement to “Interestingly, a flip in control hasn't meant a drawdown relative to the price performance observed prior to the election.”  

“However, equity markets continue to face several economic headwinds that may persist beyond the elections and keep volatility at elevated levels,” he added. 


Contact Shubham Saharanat[email protected]   

Shubham Saharan is a markets reporter at Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.