Some exchange-traded funds (ETFs) are all about quality stocks. Others are about themes that captivate investors, who will give the fund a look simply based on its name. CoreValues America First Technology ETF (USMD), a new actively managed fund launched earlier this month, will likely prove to be a mix of both of those strategies.
The new ETF aims to capitalize on what might turn out to be one of 2026’s biggest paradoxes. We all know the U.S. is the technology leader of the world. It has vaulted to that perch, starting with the rocking 1990s.
But that led to the dot-com bubble and subsequent crash. And just as USMD is hitting the market, the headlines are all talking about the “sell America” trade. That’s the phenomenon in which investors in and out of the United States essentially decide that it's high time for some geographical diversification.
Investment Strategy and ‘America First’ Focus
The fund’s managers define eight categories that support U.S. national interests:
- Artificial intelligence (AI): Firms providing AI infrastructure, chips, and software platforms.
- Defense technology: Companies developing next-generation military aerospace, satellites, and space defense.
- Cybersecurity: Providers of endpoint protection, zero-trust frameworks, and AI-driven threat response.
- Semiconductors: Manufacturers and designers of advanced microchips and electronic components.
- Autonomous systems: Developers of drones, robotics, and underwater systems for defense or civilian use.
- Nuclear and power storage: Focused on uranium mining, small modular reactors (SMRs), and next-generation battery systems.
- Robotics and automation: Including industrial, collaborative, and surgical robots.
- Digital infrastructure: Supporting the backbone of modern connectivity and data processing.
The sub-adviser, MSA Power Funds, invests in about 120 stocks, 15 from each of those eight segments. As of a few days ago, the fund’s top 10 holdings looked like this:
| Symbol | Company | Weight |
| (JNJ) | Johnson & Johnson | 5.77% |
| (GOOG) (GOOGL) | Alphabet | 5.06% |
| (NVDA) | Nvidia | 5.04% |
| (AVGO) | Broadcom | 5.03% |
| (TSLA) | Tesla | 4.88% |
| (AMZN) | Amazon | 4.31% |
| (MSFT) | Microsoft | 4.27% |
| (AMD) | Advanced Micro Devices | 3.94% |
| (CSCO) | Cisco Systems | 3.86% |
| (PLTR) | Palantir Technologies | 3.43% |
Notably, one of the fund’s managers brings a background that includes work for the U.S. State Department and U.S. Department of Defense. As we see above, the ETF’s top names are very familiar stocks, implying a large-cap bent.
The Bottom Line on USMD
This ETF might have some added value to offer, but it is not yet apparent how. That’s because, like many ETFs, the top 10 to 20 holdings dominate. That has the effect of crowding out other portfolio names, which might be sources of return beyond what a typical S&P 500 market basket might bring. It will take some premium returns to get the fund noticed beyond the launch announcement, as it reportedly started with just $1 million in assets.
But with any ETF, whether or not there is a compelling case for the portfolio, there’s a big advantage often lost on investors. ETFs are, at their core, baskets of stocks based on research. That research might be a screen conducted at regular intervals to arrive at an index portfolio. Or, it could be an active process.
Either way, with an ETF like USMD, there is one immediate use case. Specifically, for traders or investors looking for stocks to participate in the “American First” theme, looking at the fund’s updated holdings makes for a nice starting point.
Rob Isbitts created the ROAR Score, based on his 40+ years of technical analysis experience. ROAR helps DIY investors manage risk and create their own portfolios. For Rob's written research, check out ETFYourself.com.
On the date of publication, Rob Isbitts did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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