New investment strategies aim to bring ‘political transparency’ to S&P 500 index funds

Two Madison-based companies have released new investment strategies aimed at bringing “complete political transparency” to S&P 500 index funds. 

Goods Unite Us and Quiver Quantitative yesterday announced the launch of the “Republican Large-Cap Core Strategy” and the “No-PAC Large-Cap Core Strategy” for investors. These investment products are modeled after the “Democratic Large-Cap Core Fund,” launched in November 2020. 

This initial strategy was created to “provide similar risk and performance as the S&P 500” but only includes companies that have made over 75 percent of their political contributions to Democratic candidates and causes, according to a release. 

The two new strategies are focused on businesses that support Republican candidates and groups, and those that don’t have or donate to political action committees, respectively. 

“Having all three strategies will now allow for an apples-to-apples comparison of Democratic v. Republican S&P 500 performance and comparisons of S&P 500 performance between corporations that do — and do not — use political action committees to influence politics,” Quiver Quant’s CEO James Kardatzke said in a statement. 

Since Goods Unite Us launched in 2017, the company says more than a million consumers have used its apps and websites to understand how their purchasing choices indirectly affect the political realm. 

Its mission is to “bring transparency to corporate political activities and to allow consumers and investors to align their monetary decisions with their politics and their personal beliefs,” according to CEO Abigail Wuest. (pictured here)

With the new strategies aimed at Republican-supporting and non-political businesses, she says the business is “helping to ensure that all consumers who care about where their money is going and how it is being used have investment options available to them.” 

See more details in the release: