Go Woke, Go Broke? 3 ETFs to Buy if You’re a Conservative or Support Donald Trump

Political influence and polarization along party lines is increasingly unavoidable in investing. Since Donald Trump's victory in the 2024 presidential election, there has been a surge of analyses on the "Trump Trade" — I've even penned a few pieces myself specific to ETFs.

Interestingly, the intersection of politics and investing extends beyond market speculation. Take Strive Asset Management, for instance, co-founded by Vivek Ramaswamy.

Strive champions Milton Friedman’s principle of "shareholder primacy," which argues that companies should prioritize shareholder returns and dismiss non-pecuniary factors like environmental, social, and governance (ESG) considerations. Their ETF lineup reflects these considerations.

However, Strive is not alone in this space. A number of boutique ETF firms, supported by ETF white labelers, have launched ETFs specifically tailored for conservative, right-leaning investors.

Clearly, there’s somewhat of a demand for these specialized ETFs. Here’s a breakdown of the top three ETFs for those who prefer their investments to reflect their political leanings.

God Bless America ETF (YALL)

YALL is unabashedly patriotic, its homepage proclaiming it as "AN INVESTMENT FOR GOD-FEARING, FLAG-WAVING CONSERVATIVES—Stop Investing in Woke Companies." They even offer a free copy of "Your Guide to Patriotic Investing" to those who provide contact information.

Managed by Curran Financial Partners, YALL targets companies that, in their view, "refused to bow to the liberal mob." It is actively managed and aims to represent a diversified portfolio by sector, closely aligning with the overall composition of the S&P 500, yet it is more concentrated.

The strategy involves selecting what they consider the three to four best-in-class stocks per sector, which are then weighted based on sector significance and the business's market capitalization. The selection process also includes a screening based on the number of jobs the business has helped create.

Currently, YALL has approximately $87 million in assets under management and charges an expense ratio of 0.65%. Its top holding is Tesla, a choice that aligns with Elon Musk’s public support for Donald Trump. Other notable holdings include Nvidia, Costco, Boeing, and Broadcom.

Point Bridge America First ETF (MAGA)

Next up is MAGA, a ticker clearly chosen to resonate with Donald Trump's campaign slogan, "Make America Great Again."

MAGA operates as a passive ETF, tracking 150 companies from the S&P 500 Index that are favored by employees and political action committees (PACs) known for their support of Republican candidates. The holdings within this ETF are equally weighted, which strategically diversifies its profile.

This practical approach results in a lower concentration in the technology sector and a higher allocation to mid-cap companies. Point Bridge touts this strategy as beneficial, positioning MAGA as "a good alternative or supporting position to traditional core funds and ETFs," particularly for those looking for varied sector exposure.

Currently, MAGA manages just over $24 million in assets under management (AUM) and carries a higher expense ratio of 0.72%, making it more expensive compared to other similar ETFs like YALL.

American Conservative Values ETF (ACVF)

Last but not least, we have ACVF. In their words, ACVF’s investment thesis is built on the belief that "politically active companies fail to maximize their shareholder returns, as well as support issues and causes that conflict with conservative ideals, beliefs, and values."

ACVF is actively managed with a focus on diversified, large-cap core holdings. The goal, again in their own words, is to "boycott as many companies hostile to conservative values as possible," essentially aligning the fund’s investments with the political and ethical preferences of its target audience.

Advised by Ridgeline Research LLC, ACVF is the largest of the three funds discussed, with $113 million in assets under management but is also the most expensive with a 0.75% expense ratio.

In terms of holdings, ACVF presents an appealing mix of blue-chip value and growth stocks. The top holdings include conservative staples like Berkshire Hathaway, Procter & Gamble, and Cisco on the value side, complemented by growth-oriented companies such as Nvidia, Microsoft, Tesla, and Mastercard.

If one were to overlook the political framing, ACVF might be seen as just another run-of-the-mill, actively managed U.S. large-cap fund with a high degree of active share.

How have these ETFs fared?

I conducted a backtest of all three ETFs' total returns from October 11, 2022, to November 8, 2024, versus the SPDR S&P 500 ETF (SPY).

In short, YALL outperformed, ACVF matched SPY on a total return basis but outperformed on risk-adjusted returns, while MAGA lagged.

Conclusions to draw from this are threefold—less to do with politics, more to do with ETF construction:

1. YALL was the most concentrated by far, and this paid off well during the 2-year backtest period.
2. ACVF's goal of providing a large-cap core exposure similar to the broad market did work well, and its security selection resulted in a slightly better Sharpe ratio.
3. MAGA underperformed SPY, largely due to its equal-weighted process which allocated less to winning mega-caps and more to lagging mid-caps.

The other takeaway and my personal opinion is—don't mix politics and investing! I find it ironic these ETFs blast companies for embracing non-pecuniary considerations (a value concern), then go out of their way to pick stocks based on party lines.