There are exchange-traded funds (ETFs) for just about any investing theme these days. One of the best examples of that is the Point Bridge America First ETF (CBOE:MAGA), better known as the MAGA ETF. It gives investors a rare opportunity to align their portfolios with their political views. This innovative fund tracks the MAGA Index, which selects 150 companies from the S&P 500 based on their strong financial support for Republican candidates through employee contributions and corporate PAC donations.
However, these aren’t necessarily very politically charged organizations. Some of the bigger names in the ETF include Yum! Brands (NYSE:YUM), Monster Beverage (NASDAQ:MNST), and Amgen (NASDAQ:AMGN). These are still fairly safe stocks which are within the S&P 500. But while they may be pro-Republican based on political contributions, that doesn’t mean that they will directly benefit from all or even most of President Trump’s policies.
Nonetheless, the fund gives investors a fairly unique way to gain exposure to a narrower selection of stocks from the S&P 500. The stocks in this ETF are equally weighted, so there’s no one holding which will have an oversized impact on the fund’s overall performance.
Over the past year, the MAGA ETF has gained approximately 8%, and it offers a modest dividend yield of 1.1%. However, its expense ratio sits at 0.72%, higher than many broad-market alternatives.
MAGA may appeal to politically conservative investors looking to align their portfolios with companies that actively support Republican candidates and causes. But you should be careful not to assume that this ETF will do well under a Trump presidency. If the U.S. economy struggles, so too will many of these stocks.
