DEMZ Profile
The Democratic Large Cap Core ETF is designed to track an index that is a subset of the S&P 500 Index, focusing specifically on large-capitalization companies that contribute to Democratic Party candidates and political action committees (PACs) above a predefined threshold. This index aims to offer investors a way to align their portfolios with companies that support Democratic political causes and initiatives. The ETF's investment strategy is underpinned by this unique selection criterion, making it distinct from other broad market ETFs.
Under normal market conditions, the fund commits to investing at least 80% of its net assets, including any borrowings for investment purposes, in the securities of companies that are constituents of this specialized index. This investment approach ensures that the ETF's holdings are concentrated in large-cap companies that not only meet certain size and liquidity standards but also align with the political preferences outlined by the index's criteria. This creates a targeted investment vehicle for those interested in supporting Democratic-affiliated corporate donors.
The ETF provides exposure to a diversified set of large-cap companies across various sectors of the economy, all of which have demonstrated a commitment to Democratic causes through their political contributions. This focus on political contributions serves as a distinguishing feature, allowing investors to participate in the financial performance of companies while also reflecting their political or social values. The funds holdings are reviewed and adjusted based on the political contributions data, ensuring that the ETF remains aligned with its investment mandate.
Investors in the Democratic Large Cap Core ETF can expect a portfolio concentrated in major corporations with significant influence and substantial market capitalization. This targeted approach offers both the potential for capital appreciation and a means to invest in companies that support specific political objectives. As with any sector-specific or politically oriented fund, investors should consider the implications of the fund's concentration on their overall investment strategy and risk profile.
|
