Trump Media & Technology Group has unveiled a set of politically themed exchange-traded funds (ETFs) associated with its Truth Social brand, aiming to offer investors a chance to support “America First” values. This announcement comes at a time when former President Donald Trump, a significant shareholder in the company, wields considerable influence over the sectors these funds target, including defense, energy, and real estate.
The five new ETFs, branded as “America First-themed,” will focus on investments in defense, energy, real estate in Republican-leaning states, as well as sectors dubbed “American icons” and “next frontiers.” This initiative expands upon three previously introduced cryptocurrency-focused funds that fall under the umbrella of “Truth Social Funds.” Registration statements for these ETFs have been filed with the Securities and Exchange Commission by Yorkville America Equities, based in Florida.
To ensure alignment with the Truth Social brand and its principles, these ETFs will incorporate a screening process developed in collaboration with the conservative nonprofit 1792 Exchange. Donald Trump holds approximately 114,750,000 shares in Trump Media, which gives him substantial influence over the sectors targeted by these investment funds. As of the latest reports, these shares are valued at about $1.9 billion, held in a revocable trust of which he is both the primary donor and beneficiary.
Despite concerns raised regarding potential conflicts of interest, White House press secretary Karoline Leavitt downplayed these issues, stating that ongoing media narratives are misleading and damage public trust. Critics, however, argue that Trump’s position creates an unacceptable conflict, allowing him to benefit financially from his role as president while also regulating the industries in which his company is involved. Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington, termed it a “jaw-dropping conflict of interest.”
Federal conflict of interest laws exempt the president and vice president from most regulations, enabling Trump to retain ownership of his business interests during his time in office. This arrangement has contributed to an estimated rise in Trump’s net worth to $7.3 billion, boosted by gains from cryptocurrencies and shares in Trump Media.
The exact fees associated with the Truth Social ETFs remain undisclosed, nor has the company revealed whether these funds will track existing indexes or utilize active management strategies. Trump Media anticipates that these ETFs will begin trading later this year on NYSE Arca, subject to regulatory approval. In a notable financial context, Trump Media recently reported a $20 million loss in the last quarter due to heavy investments in new ventures, including cryptocurrency and streaming products, all while awarding its CEO, Devin Nunes, a stock package worth $5.9 million, set to accrue over three years.
The ongoing developments reflect not only the financial landscape surrounding Trump Media but also the broader implications of intertwining political interests with investment opportunities.
