Can Trump’s ETFs Compete With BlackRock, Vanguard, State Street?

There’s Donald Trump-branded vodka, steaks, memecoins, and now … exchange-traded funds.

Trump Media’s new asset management company announced the launch of six thematic funds last week designed to track economic sectors that his administration has promised to support, like cryptocurrency, energy, and manufacturing. His company, Truth.Fi, filed with the Securities and Exchange Commission to trademark “Made in America,” “Energy Independence,” and “Bitcoin Plus” funds, along with matching separately managed account versions, and said the products offer an alternative to the whole woke investing thing. 

But with new ETF launches hitting record highs in a marketplace already dominated by BlackRock, Vanguard and State Street, can the new Trump-backed funds really attract interest, and assets, from index investors? 

Make ETFs Great Again

It’s anyone’s guess how the investing public will react to a product launched by the president’s media company, but there are similar launch stories to consider. Strive Asset Management, an issuer founded by former presidential candidate Vivek Ramaswamy, made waves when it opened its doors back in 2022 after it was largely marketed as an “anti-woke” shop. Ramaswamy, who recently left the administration’s DOGE task force and is reportedly running for governor in Ohio, was one of the first high-profile political figures to launch an ETF. Today, Strive has pulled in some $2 billion in assets, a “reasonable total” for a startup, said Aniket Ullal, head of ETF research at CFRA Research. 

But that makes Strive just the 72nd-largest issuer by AUM in the US with a market share of just .02%, according to CFRA data. “Given the intense competitive dynamics of this industry, it seems likely that Truth.Fi will have a similar outcome,” Ullal said. 

The Trump Card. Truth.Fi’s Bitcoin Plus ETF might stand the best chance at mainstream success, given the president’s hardline support of cryptocurrency. But it will have to contend with BlackRock’s IBIT that has dominated inflows in Bitcoin ETFs since its launch in January of 2024. That fund was one of the most successful launches in the history of the industry, and shattered ETF industry records heading up to the November election:

• BlackRock took in more than $2.15 billion in assets in IBIT in a single week leading up to Nov. 5.
• Even more impressive: $872 million came on a single day, breaking previous all-time highs for one-day inflows, according to Bloomberg. 

“The only way for Truth.Fi to break through the marketing noise and exceed the $10 billion asset threshold is if the president gets personally involved in discussing these ETFs in the media,” Ullal said. 

We’re surprised he hasn’t already.