The Advisors' Inner Circle Fund III Democratic Large Cap Core ETF

DEMZ

Market cap $48.4M

ETFs that combine investing and politics tap into investors' polarized views. Why they shouldn't get your vote.

DEMZ holds S&P 500 companies that contribute roughly 75% or more to Democratic causes and candidates. Its expense ratio is 0.45% and the ETF has $41M in assets under management. Its investment objective is to mirror the risk and return characteristics of the S&P 500 Index. So far, it has accomplished that goal, but mainly due to favorable sector allocations. I'm not convinced evaluating political contributions is a good way to categorize companies. For example, MSFT and NVDA are top holdings in both DEMZ and the American Conservative Values ETF.

‘There's no guarantee that any one of these funds will do well under a Democratic regime or a Republican regime,' one analyst notes.