Democratic Large Cap Core ETF (DEMZ)

ETF Democratic Large Cap Core ETF Summary:

Profile:

• Invests in large-cap stocks of American companies aligned with Democratic political values.
• Focuses on sectors like technology, healthcare, and consumer staples.
• Employs a passively managed strategy, tracking a customized index of Democratic-aligned companies.

Objective:

• Aims to provide long-term capital appreciation by investing in a portfolio of Democratic-aligned large-cap stocks.
• Seeks to outperform the broad market while aligning investments with Democratic values.

Issuer:

• Company: Democratic ETF Trust
• Reputation/Reliability: New ETF with limited track record.
• Management: Experienced team with expertise in ESG and thematic investing.

Market Share:

• Emerging ETF in a niche market, exact market share data not yet available.

Total Net Assets:

• Approximately $25 million (as of November 7, 2023).

Moat:

• Unique focus on Democratic-aligned companies differentiates it from other large-cap ETFs.
• Potential to attract investors seeking to align investments with their values.

Financial Performance:

• Limited historical data available due to recent launch.
• Recent performance has tracked the broader market, with slight outperformance.

Benchmark Comparison:

• Outperformed the S&P 500 by a small margin since its inception.

Growth Trajectory:

• Potential for growth as investor interest in ESG and thematic investing increases.
• Dependent on the performance of Democratic-aligned companies.

Liquidity:

• Average daily trading volume of approximately 10,000 shares.
• Bid-ask spread around $0.05.

Market Dynamics:

• Political and economic factors can influence the performance of Democratic-aligned companies.
• Increasing demand for ESG and thematic investments creates tailwinds.

Competitors:

• iShares ESG Aware MSCI USA Large-Cap ETF (ESGU)
• Vanguard ESG US Stock ETF (ESGV)
• SPDR S&P 500 ESG ETF (EFIV)

Expense Ratio:

• 0.60%

Investment Approach and Strategy:

• Tracks the Solactive US Large Cap Democratic Leaders Index.
• Invests in large-cap stocks of companies with significant political contributions to Democratic candidates and causes.

Key Points:

• Unique thematic focus on Democratic-aligned companies.
• Passively managed for broad market exposure.
• Relatively low expense ratio.
• Limited track record and market share.

Risks:

• Concentration risk in a specific segment of the market.
• Potential underperformance compared to broader market indices.
• Political and economic factors can influence performance.

Who Should Consider Investing:

• Investors seeking alignment with Democratic values.
• Investors looking for exposure to large-cap stocks with a thematic focus.
• Investors comfortable with a higher degree of volatility.

Fundamental Rating Based on AI:

7/10

The ETF Democratic Large Cap Core ETF holds promise due to its unique focus and potential to attract value-driven investors. However, its recent launch and limited track record warrant cautious optimism. The AI-based rating considers factors like market positioning, financial health, and future prospects. While the ETF demonstrates potential for growth, further performance data and market share development are needed for a more conclusive assessment.

Resources:

• ETF Democratic Large Cap Core ETF website: https://www.democraticeth.com/
• Solactive US Large Cap Democratic Leaders Index: https://www.solactive.com/indices/?index=USLCAPDML
• Yahoo Finance: https://finance.yahoo.com/quote/DEMZ/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.