More Woes for MAGA (the ETF)

More Woes for MAGA (the ETF)

Fund named with Trump slogan has slumped this year, while left-leaning DEMZ leaps.

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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

Not all is well in MAGA-land. 

As former President Donald Trump prepares to face criminal charges next week, according to published reports, an exchange-traded fund that takes its name from his movement is having its own difficulties. 

The $18.3 million Point Bridge America First ETF (MAGA), which invests in companies whose employees and political action committees support GOP candidates, has dropped 2.8% over the past three month. Its biggest holding is medical device Cooper Companies Inc., whose stock has gained 12% this year.

MAGA gained 1.3% today, according to etf.com data. The Wall Street Journal showed fewer than 600 shares traded.

At least one other Republican-leaning ETF is falling as Trump becomes the first former U.S. president to be indicted. At the same time, a pair of Democratic-leaning funds have performed better. 

The Unusual Whales Subversive Republican Trading ETF (KRUZ), which holds nearly $5 million, takes its ticker from U.S. Senator Ted Cruz and has slipped 3% since it began trading Feb. 7.  

Meanwhile, the  Democratic Large Cap Core ETF (DEMZ) has added 5.9% over the past three months and the Unusual Whales Subversive Democratic Trading ETF (NANC), named after California Congresswoman and former House Speaker Nancy Pelosi, is less than 1% higher since its Feb 7 launch.  

No direct correlation can immediately be established between the funds’ performances and Thursday’s indictment by a New York City grand jury for Trump’s role in payments to an adult film star. At the very least, the performance disparities indicate a dissociation from fund names, etf.com Senior Analyst Sumit Roy said. 

“The differences in the portfolios and performance underscores how arbitrary the strategies behind these ETFs can be,” he noted.  

In fact, at least one other Republican-leaning fund has beaten the broader market. The God Bless America ETF (YALL) has jumped nearly 11% this year, trouncing other politically affiliated ETFs. At the same time, the SPDR SPY S&P 500 ETF Trust (SPY) has added 5.1% over the past three months. 

Fort Worth, Texas-based Point Bridge didn't immediately respond to a request for comment. The firm was founded by Hal Lambert, whose website says he's a former Credit Suisse and J.P. Morgan portfolio manager who served on Trump's inaugural committee.

Contact Shubham Saharan at [email protected]        

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