Hedgeye Files for ETFs Tracking Democratic and Republican Election Odds

Hedgeye Asset Management has filed to launch two actively managed ETFs that would provide continuous exposure to the electoral performance of the Democratic and Republican parties in U.S. federal elections. Rather than investing in politically themed stocks, the funds would gain exposure primarily through event contracts, swaps, and other derivatives tied directly to outcomes in U.S. House, Senate, and presidential races. The portfolios are designed to roll exposure into future election cycles instead of terminating after a single election, allowing investors to maintain ongoing positions as political probabilities evolve. Each fund will invest at least 80% of its assets in election-linked derivatives, use Cayman subsidiaries to facilitate derivatives exposure, and hold cash, U.S. Treasuries, and other short-term securities as collateral. The filings represent an unusual expansion of exchange-traded products into regulated political prediction markets, offering investors a direct way to express views on U.S. electoral outcomes through ETFs.