Want to invest in line with your political ideals and the Grand Old Party? A new exchange-traded fund and index will let you to do just that.
Point Bridge Capital LLC launched its MAGA ETF, which tracks the Point Bridge GOP Stock Tracker index. The rules-based methodology follows the performance of companies whose employees and political action committees are highly supportive of Republican Party candidates.
"I have been in the investment business as a portfolio manager for over 20 years, and (have) also been very involved in politics," said Hal Lambert, founder and managing director of the firm in Fort Worth, Texas. Mr. Lambert, in a telephone interview, said he had noticed "companies were getting more and more politically active, making public statements and really affecting, I think, stock prices in their companies."
Stock selection begins with the S&P 500, screening for PACs and employee contributions. Point Bridge then uses proprietary rules to select the top 150 Republican-supporting companies. "That is what makes up the ETF. (It is) important because companies are giving millions and millions of dollars, affecting the outcomes of elections, and companies may be contributing to candidates that investors may not want to support," he said. Mr. Lambert declined to comment on whether the MAGA ticker stands for "Make America Great Again," the slogan adopted by President Donald Trump for his 2016 campaign. Mr. Lambert has dubbed the development of the ETF and index "politically responsible investing. I view it as a new category for investors," he said.
He said he'll be looking to launch more politically linked funds in the near future.
Further information is available on the ETF website.
— Sophie Baker and Lydia Parker