MAGA ETF Is Outperforming S&P 500 Months After Trump Left Office

An ETF named after a popular Donald Trump phrase is outperforming the market after the president was voted out of office.

What Happened: One question asked by those following the ETF market around the time of the 2020 Presidential Election was what would happen to an ETF that tied itself to Donald Trump.

The Point Bridge GOP Stock Tracker ETF MAGA tracks companies in the S&P 500 that make donations to the Republican party.

The ETF had assets of $8.6 million when Benzinga last wrote about it prior to the election. The ETF was launched in September 2017. Hal Lambert, the man behind the MAGA ETF, said the ETF would continue if Trump lost and the ETF would keep the MAGA symbol.

“The goal for this ETF was the have something for conservatives to invest in that hasn’t been out there,” Lambert said at the time.

The S&P 500 was up 16.3% in 2020 and averaged annual returns of 14.5% during Trump's time in office.

Related Link: What Happens To The MAGA ETF If Trump Loses The Presidential Election? 

The MAGA ETF Today: The Point Bridge GOP Stock Tracker ETF holds 152 different stocks in the ETF. None of the individual stocks make up more than 0.9% of assets. The ETF has risen in assets under management with $11.2 million at the time of writing.

Here is a look at the top 10 holdings in the MAGA ETF:

• Nucor Corp NUE
• United Parcel Services UPS
• Seagate Technology STX
• Molson Coors Beverage TAP
• Textron Inc TXT
• PPG Industries Inc PPG
• Northrop Grumman Corporation NOC
• Sherwin-Williams Company SHW
• Allstate Corporation ALL
• D.R. Horton Inc DHI

Year to date, the MAGA ETF is up 25.5% compared to an 11.5% increase for the SPDR S&P 500 ETF SPY. Over the last 52 weeks, the MAGA ETF is up 79% compared to the 48% increase in the SPY.

Part of the outperformance could have to do with sector weightings. One flaw before for the MAGA ETF was it didn’t have as many technology companies in the ETF as many of them didn’t donate to the Republican party.

The MAGA ETF is heavier on defense and materials names and light on technology. The shift in investors looking for value stocks instead of high growth technology has helped MAGA outperform.

Could a Republican-themed ETF continue to make ETFs great again? Time will tell.

Photo Credit: Public image via Wikimedia.