A new exchange-traded fund (ETF) is to be launched, with the ticker MAGA, which will invest in companies that support the Republican Party.
Fort Worth, Texas-based Point Bridge Capital has filed for the fund, which will be called the Point Bridge GOP Stock Tracker ETF, according to a Securities and Exchange Commission filing.
The fund will track the firm’s Point Bridge GOP Stock Tracker index, which is designed to track the performance of companies whose employees and political action committees (PACs) are highly supportive of Republican candidates for election to the United States Congress, the vice presidency, or the presidency and related Republican Party committees.
It will have an expense ratio of 0.72%.
The strategy would start with an initial universe of the companies included in the S&P 500 index.
The universe is then screened using electoral campaign contribution data from the Federal Election Commission to eliminate companies whose employee households and PAC have made aggregate reported political contributions of less than $25,000 across the two most recent election cycles, which would eventually leave the top 150 companies in the index based on such rankings.
If approved, the ETF would be subadvised by Vident Investment Advisory and managed by Denise M. Krisko, who is the president of the firm.
The fund is not the first politically-themed ETF in registration.
In April, ETF provider Event Shares filed for a series of four actively-managed ETFs including the Republican Policies Fund, Democratic Policies Fund, U.S. Tax Reform Fund and European Union Breakup Fund.
If approved, the four funds would be managed by Jonathon Clements and Matthew Clements, who are respectively chief executive and chief financial officer of the firm.
The Event Shares Republican fund differs from the Point Bridge GOP fund in that it does not seek to replicate the performance of a specified index but merely aims to invest in companies that benefit from Republican policies.