GRFT ETF Seeks To Turn Political Power Plays Into Investor Gains

In a move that combines finance, politics, and a pinch of satire, Tuttle Capital Management on June 28 filed with the U.S. Securities and Exchange Commission to launch a new exchange-traded fund (ETF) under the ticker symbol GRFT.

Interestingly, GRFT (can be read as “grift”) is as unrepentant as it appears. The fund, which is proposing a 0.75% fee, hasn’t mentioned particular politicians or regimes in its papers, but it doesn’t have to. The name itself is a wink, a poke, and a headline generator. The ETF seeks to invest in firms with perceived political ties, ranging from members of Congress to acquaintances of the U.S. President, striking a balance between strategy and showmanship.

The objective? To convert political closeness into investment gains. The actively managed ETF will target companies that appear in congressional filings, enjoy presidential approval, or have direct or indirect connections to incumbents in public office. It even intends to roll out into cash and cash equivalents during times of increased volatility.

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Though the approach is eyebrow-raising, it’s not completely novel. Bloomberg pointed out that in 2023, the Unusual Whales Subversive Democratic (BATS:NANC) and Unusual Whales Subversive Republican Trading ETF (BATS:GOP) launched to mirror disclosed trading activity by lawmakers in accordance with the STOCK Act. Those funds were more bipartisan, though still eyebrow-raising, in their approach. GRFT ramps up the volume, though, with its branding, and a political bite that’s more pointed.

“There's certainly a cheeky theme to it,” said Steve Sosnick, chief strategist at Interactive Brokers, according to Bloomberg. “It's hard to differentiate yourself in a crowded ETF world and this seems like an opportune way to do it, although with a very pronounced political spin.”

GRFT’s debut also comes at the same time that there is increasing scrutiny around the financial dealings of senior government officials. President Donald Trump, for example, has recently ventured into cryptocurrency, a cell phone company and a cologne brand.

White House Press Secretary Karoline Leavitt said in May that “it’s absurd for anyone to insinuate that this president is profiting off of the presidency.”

Historically, making bets based on perceived political favoritism has not consistently outperformed the market. The timing of disclosures, disparate political signals, and the frenetic pace of news cycles can dull even the best-modeled strategies. Whether the fund can pierce the din with actionable information is yet to be determined.

Nevertheless, if the buzz on the street is to be believed, investors are at least interested. According to Bloomberg, NANC, which has $223 million in assets under management, has beaten the S&P 500 this year. Its holdings include Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA). Conversely, GOP, which has $53 million in assets, has big-cap stalwarts such as JPMorgan Chase (NYSE:JPM) and BlackRock’s Bitcoin ETF (NASDAQ:IBIT).

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