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Markets Insider
Companies that give money to Democrats are beating Republican donors in the stock market
By Matthew Fox,
8 days ago
Speaker of the House Nancy Pelosi (D-CA) holds her weekly press conference at the U.S. Capitol on August 25, 2021. Kevin Dietsch/Getty Images
The DEMZ and MAGA ETFs offer investors a way to express their political beliefs via their investments.
DEMZ includes firms that mostly donate to Democratic campaigns, while MAGA buys Republican-aligned companies.
DEMZ has outperformed MAGA and the S&P 500 since its November 2020 launch.
Politically-minded market participants can express their views via their investments by buying shares of Democrat and Republican-aligned exchange-traded funds — and on the basis of returns, one has the edge in this corner of America's political debate.
"The Democratic Large Cap Core Fund is the first investment product that strives to replicate the S&P 500, without the GOP," the website of the fund says.
The constituents in the fund, which trades under the ticker symbol "DEMZ," have to have made over 75% of their political contributions to Democratic causes and candidates.
On the flip side, the Republican ETF, which trades under the ticker symbol "MAGA," includes about 150 companies from the S&P 500 index "that are highly supportive of Republicans" via their political contributions, the fund's website says.
So far, the Democrat-focused ETF has beaten the Republican-focused ETF on a one-year, three-year, and since-inception basis.
Launched in November 2020, the DEMZ fund is up 78.3% since its inception, compared to a gain of 76.6% for the MAGA fund over the same time period.
YCharts/Business Insider
Perhaps most impressive is that since November 2020, both the DEMZ and MAGA funds have outperformed the S&P 500, which is up about 72% over the same time period.
Over the past year, the DEMZ fund's outperformance has been more pronounced, with the fund up 30% compared to a gain of 18% for the MAGA fund. Over the past three years, DEMZ is up 39% compared to a gain of 31% for the MAGA fund.
Driving the outperformance in the DEMZ fund is its concentration in mega-cap technology stocks.
Another area where the DEMZ ETF is beating the MAGA ETF is in assets under management, with about $36 million invested in the former and about $21 million invested in the latter.
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