The MAGA ETF selects its holdings from large-cap US-listed stocks by applying a rules-based screen that reflects the political donation patterns of employees and political action committees (PACs). Rather than mechanically replicating the entire market, it offers a basket of US stocks filtered through a set of value criteria.

It is suited to investors who want US large-cap exposure while also reflecting their own political and social values in their investment choices, and who can accept differences in inclusion criteria compared with conventional index products.

It is a passively managed (index-tracking) ETF run by Truth Social Funds.

The fund starts with US-listed large-cap stocks and applies a rules-based screen that draws on the political donation history of employees and political action committees. As a result, a holdings structure that fits specific value criteria takes priority over market representativeness, and its sector and stock composition may differ from that of conventional large-cap index products.

• Value-criteria screening
• Focus on US large caps

Assets under management (AUM) stand at $30.3M, and the expense ratio is 0.72% per year.

Unlike typical large-cap products, the MAGA ETF uses politically oriented screening criteria, so investors should compare not only its fees but also its holdings structure and non-diversified nature.

The fund's market performance is influenced by the direction of US large-cap stocks, but it also reflects differences in holdings composition resulting from its politically oriented screening criteria. Even when it moves in the same direction as a broad market index, the magnitude of its gains and losses may differ, and the influence of specific sectors or stocks may be relatively large.

Fund flows into thematic products that reflect value criteria can vary not only with overall market risk appetite but also with how much investors prioritize those criteria. Because the MAGA ETF is classified as a micro-cap fund by size, its trading environment and liquidity may differ from those of large core products, so it is worth considering trading approach and holding purpose separately.

The fund is characterized by rules-based value screening and US large-cap exposure, but its non-diversified structure, the holdings concentration that results from political criteria, and differences in liquidity should also be taken into account.

Among the products in the table, the FNDX ETF uses a fundamental approach for US large caps, the PRF ETF uses a broad fundamental approach, and the FNDA ETF focuses on small caps. The JHMM ETF uses multifactor screening for mid caps, and the RECS ETF has the character of an enhanced-research core fund, so their inclusion criteria differ from those of the MAGA ETF. The five products also differ in fees and assets under management, so investors who prioritize exposure by market capitalization or cost over screening criteria tied to political donations should review the comparison information in the table as well.

Before investing, first confirm whether the screening rules reflecting political donation patterns fit your investment goals. Because the MAGA ETF is classified as micro-cap by size and is a non-diversified product, you should review not only its differences from market indexes but also trading liquidity, holdings concentration and distribution policy.

Politically oriented screening rules can produce a sector and stock composition that differs from general market indexes, so a gap may arise between the US large-cap market exposure investors expect and the holdings the fund actually has. The non-diversified structure and micro-cap size can amplify the effect that moves in a few stocks, or changes in trading conditions, have on the fund's price.

The Truth Social America First ETF is distinct from conventional index-tracking products in that it is a US large-cap product reflecting criteria related to political donations. If you want investment exposure aligned with your values, it is advisable to confirm the inclusion principles first, then make a decision after comprehensively comparing cost, liquidity, concentration and the annual distribution structure. Investment decisions that take your individual circumstances into account require separate review.