The latest thematic ETF to hit the market will hitch its wagon to the will of US President Donald Trump and the Republican Party with a pledge to ‘Make America Great Again’.
The ETF will invest solely in stocks tied to the Republican Party and is set to be launched by investment manager Point Bridge Capital, according to an SEC filing.
Formally called the Point Bridge GOP Stock Tracker ETF, the new passive product will carry the ticker MAGA, which stands for President Trump’s campaign slogan ‘Make America Great Again’.
According to the filing, the US-listed tracker will invest in companies which have employees or activities which are highly linked to Republican candidates for election to senior positions.
This could mean companies associated with candidates for Congress, Vice President or even the role of President. This is as well as those tied to federal committees or groups or other related investable stocks. Bloomberg has reported that the ETF is set to become live on September 7.
The announcement of the planned ETF sparked a strong response from the industry, with prolific market commentator Josh Brown, who runs The Reformed Broker, being particularly scathing about the viability of the MAGA ETF.
MAGA Muppet Bait https://t.co/nuFU8pSTq8— Downtown Josh Brown (@ReformedBroker) September 1, 2017