"White House Basket" Stocks Significantly Outperform S&P 500
A basket of stocks linked to Trump policy signals has surged 75% cumulatively since the start of his second term, far outpacing the roughly 20% gain of the S&P 500 over the same period, but obstacles in ETF listings have restricted retail investor access
Athanasios Psarofagis, an ETF analyst at Bloomberg Industry Research, stated that a basket of stocks tied to Trump policy signals has gained 75% cumulatively since the beginning of his second term, significantly outperforming the approximately 20% rise in the S&P 500 during the same period. However, hurdles in ETF approvals have limited retail participation channels.
The basket includes about 16 stocks linked to government support and public endorsements by Trump, with Intel and U.S. Rare Earths leading the gains among constituents.
However, Psarofagis also noted that the basket exhibits significantly higher volatility than the broader market, with deeper drawdowns and more intense up-and-down cycles, reflecting its high sensitivity to policy directions.
Meanwhile, investors currently find it difficult to directly participate in this theme through standardized products. An ETF designed to capture political impact strategies has yet to be listed; exchanges are reluctant to list it for trading, highlighting substantial controversies regarding compliance and definition in such exposures.
