A variety of asset classes and corners of the equity market have, at various points, worn the “Trump trade” label. Bitcoin has been among the leaders in that clubhouse. In terms of what the president himself is buying, that’s a different story.
Indicating that the president’s tastes for his personal investments are somewhat cautious, the ALPS Intermediate Municipal Bond ETF (MNBD ) could be one of the ETFs investors can use to mimic some of the president’s investment selections.
MNBD’s relevance in this conversation is easily understood. Recent data courtesy of the U.S. Office of Government Ethics (OGE) confirm that since taking office in January, the president has bought $337 million worth of corporate and municipal bonds. Interestingly, those purchases have accelerated in recent months.
“According to the forms released by the U.S. Office of Government Ethics, Trump carried out more than 175 financial purchases from Aug. 28 through Oct. 2. The disclosures, made under a 1978 transparency law called the Ethics in Government Act, do not list exact amounts for each purchase, only providing a broad range,” reported CNBC.
MNBD Could Be Interesting Trump Play
MNBD is an actively managed ETF, so there are times when it might hold some bonds owned by the president. Likewise, there are likely to be plenty of periods in which the ETF doesn’t own “Trump munis.” However, it’s clear the president likes municipal debt.
“His purchases span a wide range of debt instruments — from bonds issued by the New York Triborough Bridge and Tunnel Authority, to those linked with hospital facilities, airports, school districts, and regional development funds nationwide,” noted Yahoo Finance.
Prospective MNBD investors that are interested in the ETF and municipal bonds because the president is gobbling up that debt may be heartened to know that Trump’s recent filings don’t indicate any sales, just purchasing activity.
That could be a sign he’s bullish on America, expecting the Federal Reserve to lower interest rates in December, or both. Of course, there’s another side of the coin that’s more skeptical, but it doesn’t affect the outlook for MNBD.
“This level of trading by the President raises questions about possible conflicts of interest. The administration could influence policies affecting corporations and municipalities whose debt Trump owns,” according to Yahoo Finance.
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