Trump Media’s “America-First” ETFs Just Launched. Will They Be a Hit?

Trump Media & Technology Group (NASDAQ:DJT) was moving wildly in the past couple of sessions following the release of a new slate of “America-first” ETFs. Undoubtedly, it was a rather surprising move, but one that might garner traction in the Red states, given the unique investment methodology and mix of holdings. And, of course, there’s the Truth Social brand that the ETFs are under, making them interesting for users of the social-media app or those who want to be a “patriotic investor.”

Truth Social’s America-first ETFs arrive in time for the new year

Of course, thematic ETFs tend to accompany higher gross expense ratios and, oftentimes, going for hot trends might not be the best way to go about investing in a new year. That said, the slate of Truth Social ETFs, I think, is less about chasing trends and more about investing with one’s values. Indeed, whether we’re talking about ESG-friendly ETFs or other investment products that sell more on values than the value of the securities selected, I do think there’s a target market for such products. That alone doesn’t guarantee the new slate of ETFs will be a hit, though.

It’ll be very interesting to see how the ETFs fare in their first year. The big question is whether one’s political identity and values are significant enough to change how one invests. Just how many investors who would have otherwise invested in a simple S&P 500 index fund are there that would be interested in one of Truth Social’s five new ETFs?

It’s hard to tell, but those interested will have to pay higher fees (typically around 0.65%) relative to the more popular index funds such as the Vanguard S&P ETF (NYSEARCA:VOO), which already has fees lowered to the floor. In any case, the ETF market has become competitive, with a wide range of firms launching various products that offer a variety of traits.

The ETF scene has become quite crowded in recent years

Whether you’re in the market for something actively managed or you seek something that’s a bit more custom-tailored (perhaps you want only U.S. technology large-cap stocks that are cheaper than average or you want an ESG-friendly fund with a low beta and an above-average dividend yield), the growing assortment is a good thing for investors, but as big banks and other firms look to give their take on the market, launching a new ETF might not be a guarateed win, especially as expense ratios look to drop in what seems to be a race to the bottom. Of course, Vanguard is one of the ETF providers that tends to lead the expense ratio cuts.

In any case, I’m sure that the Truth Social ETFs are what some investors, perhaps big Trump followers, have been asking for. When it comes to political identity or themes like “patriotic” investment, I think there’s a significant market that might be more than willing to pay up to hold one or perhaps a handful of Truth Social ETFs.

The initial reaction in shares of Trump Media & Technology Group was quite negative. Still, given the recovery gains in more recent sessions, it will be interesting to see just how popular the ETFs will be through 2026.

Just how many investors will want to ring in the new year with some “patriotic” ETFs?

I’m not sure, but I have modest expectations, given the niche appeal. Out of the gate, the ETFs will cover the themes of national defense, innovation, powerful brands, energy, and real estate.

Personally, I find the Truth Social American Icons ETF (NYSEMKT:TSIC) the most distinctive. After all, I don’t know that many funds that bet on powerful brands. The ETF invests in iconic American brands, including Netflix (NASDAQ:NFLX), PepsiCo (NYSE:PEP), and McDonald’s (NYSE:MCD). In my view, these are not typically top holdings you’d find grouped together. While I won’t be in a rush to buy the ETFs, it will be fascinating to gauge their performance relative to the S&P.