The political prediction ETF race is expanding.

Bloomberg ETF analyst Eric Balchunas noted that Hedgeye has filed to launch two election-linked funds: the Hedgeye Democratic Party ETF (NYSE:HDEM) and the Hedgeye Republican Party ETF (NYSE:HREP).

According to the prospectus, the ETFs will seek to track the electoral performance of the Democratic and Republican parties in U.S. federal elections on a continual basis, adding a new twist to the growing market for event-driven and prediction-based investment products.

The filing comes as asset managers increasingly look to package political outcomes into investable products, reflecting rising investor demand to express macro and election views through ETFs rather than traditional prediction markets.

QUICK CONTEXT: Political Bets Enter ETF World

Investors have long used sector ETFs to position for policy changes, but the latest wave of filings takes that idea a step further by directly tying fund performance to electoral outcomes.

If approved, Hedgeye’s HDEM and HREP would join a growing category of politically themed ETFs that seek to capitalize on election dynamics rather than simply invest in companies expected to benefit from a particular administration.

The filings also underscore how ETF issuers continue to push into niche strategies as competition intensifies, with innovation increasingly centered on thematic, event-driven and alternative investment exposures.

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