Roundhill Investments has submitted an application to the US Securities and Exchange Commission to introduce six new exchange-traded funds (ETFs) linked to event contracts related to the 2028 US presidential election. If granted approval, these funds could represent a significant shift in investment options, according to ETF analyst Eric Balchunas, who highlighted their potential appeal in speculation.
The proposed ETFs include the Roundhill Democratic President ETF, Roundhill Republican President ETF, Roundhill Democratic Senate ETF, Roundhill Republican Senate ETF, Roundhill Democratic House ETF, and Roundhill Republican House ETF. The filing indicates that while the primary ETF aims for capital appreciation based on election outcomes, the other five may face substantial risks, with the potential to lose nearly all their value.
Investors are cautioned about regulatory uncertainties surrounding event contracts, which may undergo changes that could impact the funds. The filing notes that political outcome event contracts have attracted increased scrutiny, and any regulatory adjustments could lead to limitations or prohibitions on these investments.