DEMZ ETF: What Is It? Returns, Expense Ratio, Holdings and Alternative ETFs Explained
The Democratic Large Cap Core ETF (DEMZ) is a thematic product that selects S&P 500 large caps whose political contributions lean toward the Democratic Party. Its strategy, its distribution structure, and how its holdings differ from a standard large-cap ETF are the key points to check before investing.
SubscribeWhat Is the Democratic Large Cap Core ETF?
This is a thematic large-cap ETF that tracks the Democratic Large Cap Core Index. From among S&P 500 constituents, it selects companies that have made political contributions above a certain threshold to Democratic candidates and political action committees, and it invests most of its net assets in them.
It suits investors who want to diversify across US large caps while also applying a theme based on a particular political-contribution leaning.
It is a passively managed (index-tracking) ETF run by a professional ETF manager.
How Does the Democratic Large Cap Core ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Democratic Large Cap Core Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Regular rebalancing |
| Distribution Frequency | Annual dividend |
| Total Expense Ratio | 0.45% |
The index uses the S&P 500 as its universe and keeps only the large companies that pass the Democratic-leaning political-contribution criteria. Under normal conditions, most of the net assets are invested in the index constituents, and the holdings are adjusted periodically as the criteria are reassessed.
- Stock selection based on political-contribution data
- Thematic exposure derived from the universe of S&P 500 large caps
Democratic Large Cap Core ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $68.8M, and the total expense ratio is 0.45% per year.
Democratic Large Cap Core ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBecause the holdings are centered on US large caps, its overall movement tends to resemble the direction of the large-cap market. However, the thematic screening can produce performance gaps versus broad indexes because of differences in composition.
As a thematic product, its fund flows tend to be more volatile than those of large core ETFs, and demand can shift with specific issues or changes in investor interest. Its asset base is also relatively small compared with broad core ETFs.
Democratic Large Cap Core ETF Strengths and Weaknesses
It is distinguished by clear thematic selection criteria, but its narrow stock coverage creates concentration risk compared with broad indexes.
💪 Key Strengths
⚠️ Points to Watch
Democratic Large Cap Core ETF Alternatives and Related Products
On the opposite side of the political-contribution theme, there are products such as MAGA, which selects Republican-leaning companies, making it a natural comparison by political leaning. If you want pure exposure to US large caps overall without a theme, lower-cost broad core ETFs such as VOO and SPY are direct alternatives, and if you want to reflect social responsibility criteria, ESG-oriented large-cap ETFs such as ESGU are also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDX | Schwab Fundamental U.S. Large Company ETF | $32.71 | -0.6% | $28.6B | 0.25% | 1.44% | +23.3% |
 PRF | Invesco RAFI US 1000 ETF | $56.13 | -0.8% | $10.2B | 0.34% | 1.32% | +23.1% |
 FNDA | Schwab Fundamental U.S. Small Company ETF | $35.98 | -1.3% | $9.0B | 0.25% | 1.23% | +17.6% |
 RECS | Columbia Research Enhanced Core ETF | $44.93 | -1.5% | $6.2B | 0.15% | 0.72% | +10.0% |
 JHMM | John Hancock Multifactor Mid Cap ETF | $73.57 | -1.3% | $6.1B | 0.41% | 0.89% | +14.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| LRCX | Lam Research Corp | 0.06% | $239.11 | -6.0% | $298.7B | 35.6 | 0.55% |
| KLAC | KLA Corp | 0.05% | $157.91 | -5.7% | $206.1B | 39.5 | 0.59% |
| AAPL | Apple Inc | 0.10% | $344.63 | -1.2% | $5.03T | 39.5 | 0.32% |
| AMD | Advanced Micro Devices Inc | 0.05% | $504.80 | -10.9% | $824.1B | 129.6 | - |
| NVDA | NVIDIA Corp | 0.10% | $204.64 | -4.2% | $4.93T | 25.9 | 0.38% |
| MSFT | Microsoft Corp | 0.10% | $521.91 | -1.6% | $3.88T | 27.3 | 0.74% |
| COST | Costco Wholesale Corp | 0.05% | $1012.28 | +1.6% | $448.6B | 48.8 | 0.57% |
Democratic Large Cap Core ETF Investor Checkpoints
Here are the points to review before investing in DEMZ. Because it is a thematic product, compare its selection criteria, concentration, and costs with broad core ETFs, and also consider whether the theme fits your own investment style.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🎯 Selection criteria | Whether the political-contribution theme fits your investment style | Needs review |
| 📊 Concentration | Concentration risk from narrower stock coverage | Narrower than broad indexes |
| 💵 Expense ratio | Cost comparison with broad core ETFs | Needs review |
| 💱 Exchange rate | Impact on returns when converted to Korean won | Not currency hedged |
Because thematic selection narrows the stock coverage, concentration risk and performance gaps versus broad indexes are the main risks. Even with a large-cap foundation, thematic bias can cause it to move differently from the market.
It is a product worth considering for investors who want to reflect a specific political-contribution theme in their US large-cap exposure. If you do not need a theme, lower-cost broad core ETFs such as VOO and SPY can serve as alternatives.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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