Overview: Changes Made To The Portfolio

Every quarter, Strategas rebalances the U.S. Large-Cap Policy Opportunities Portfolio (POP) to reflect the latest quarterly lobbying allocations made by S&P 500 companies. On May 15, 2025, the portfolio was rebalanced and reconstituted to reflect first quarter 2025 lobbying data.

This quarter’s lobbying rebalance reflects the first quarter of lobbying since President Trump entered the presidency and Republicans took complete control of the Congress. Historically when a new president enters office, POP has heavier turnover in its first rebalance. We celebrate this turnover as it represents the active nature of companies altering their lobbying strategies in response to the changing policy issues being debated in Washington. 

In our view, companies understand their policy risks and opportunities quickly and try to get ahead of these significant policy changes. With such wide-ranging policy changes on the table, companies listed on the S&P 500 increased their lobbying spend by nearly 10 percent in Q1 compared to the same quarter last year. 

As such, 15 new companies are entering the strategy and 15 are exiting the strategy.

Companies entering the portfolio are lobbying on a wide range of issues that are top of mind for policymakers. This issues include trade and tariff policy, tax policy due to the expiration of the Tax Cuts and Jobs Act at the end of this year, new business tax cuts designed to speed up re-shoring in the US, clean energy subsidies which are slated to be cut, and crypto legislation as policymakers seek to create a system of rules.  Below we summarize the lobbying trends of the companies entering and exiting the portfolio.

Definitions:

The S&P 500^® Index (the Index) is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. The Index includes 500 leading companies and covers approximately 80% of available market capitalization.

This communication was prepared by Strategas (“we,” “us,” or “our”), a brand that offers investment advisory services through Strategas Asset Management, LLC, an SEC Registered Investment Adviser, and provides research to institutional investors through Strategas Securities, LLC, a broker-dealer and FINRA member firm and an SEC Registered Investment Adviser.  This communication represents our views as of 5/14/2025, which are subject to change, and presented for illustrative purposes only. The information contained herein has been obtained from sources we believe to be reliable, but no guarantee of accuracy can be made. This communication is provided for informational purposes only and should not be construed as an offer, recommendation, nor solicitation to buy or sell any specific security, strategy, or investment product.  This communication does not constitute, nor should it be regarded as, investment research or a research report or securities recommendation and it does not provide information reasonably sufficient upon which to base an investment decision. This is not a complete analysis of every material fact regarding any company, industry, or security. Additional analysis would be required to make an investment decision. This communication is not based on the investment objectives, strategies, goals, financial circumstances, needs or risk tolerance of any particular client and is not presented as suitable to any other particular client. Past performance does not guarantee future results. All investments carry some level of risk, including loss of principal.

Strategas Asset Management, LLC and Strategas Securities, LLC are affiliated with Robert W. Baird & Co. Incorporated ("Baird"), a broker-dealer and FINRA member firm, and an SEC Registered Investment Adviser, although the firms conduct separate and distinct businesses.