Benzinga | Nov 4, 2020 04:30PM EST

Democratic DEMZ ETF Launches On Election Day: What Investors Should Know

A new ETF will highlight the companies in the S&P 500 that give large contributions to the Democratic Party and related political action committees.

The DEMZ ETF: The DEMZ Political Contributions Fund ETF (NASDAQ:DEMZ) launched Tuesday, Nov. 3, coinciding with the 2020 election.

The ETF selects components from the S&P 500 that give at least 75% of political contributions to the Democratic Party and related PACs.

Fund sponsor Reflection Asset Management utilizes third-party data around political contributions compiled by Goods Unite Us, a nonpartisan technology data platform, according to a filing by the ETF.

"DEMZ provides U.S. large-cap equity exposure, while maintaining the integrity of owning only those companies that share the investor's commitment to Democratic causes and candidates," said CEO Jason Britton.

Related Link: 30 Stocks And ETFs To Watch After 2020 Election Day

The ETF's Holdings: The ETF has 41 holdings for its market debut.

The top five holdings in the ETF are M&T Bank Corporation (NYSE:MTB), Colgate-Palmolive Corporation (NYSE:CL), Consolidated Edison (NYSE:ED), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Agilent Technologies Inc (NYSE:A).

The company has strong weighting in technology stocks, which have been one of the top-performing sectors in 2020.

Along with Alphabet, Apple Inc (NASDAQ:AAPL), International Business Machines Corporation (NYSE:IBM) and Nvidia Corporation (NASDAQ:NVDA) are top 10 holdings.

Rival Republican ETF: The Point Bridge GOP Stock Tracker ETF (BATS:MAGA) was launched in September 2017. The ETF holds S&P 500 component companies that make more donations to the Republican Party than Democrats.

The fund has 150 holdings, but does not hold many technology companies, as these companies tend to donate more to Democrats.

The founder of the fund said it will continue and keep the "MAGA" ticker symbol even if Donald Trump loses the 2020 election.

The MAGA ETF is down 7% in 2020 and has lost value since it first went public in 2017.