Do you think US lawmakers know about the stock market? There are now ETFs that allow investors to track the moves of politicians from the two major political parties.
Unusual whales, u in collaboration with Subversive Capital, he uncovered two politically charged exchange-traded funds that serve both the Republican and Democratic sides of the aisle. Those two funds are the Unusual Whales Subversive Democratic ETF (SHISIŠI: NANC) and Unusual Whales Subversive Republican ETF (SHISIŠI: CROSS).
NANC: Plans to invest in unsecured securities bought or sold by Democratic members of Congress and their spouses.
CRUZ: Offers exposure to securities bought or sold by Republican members of Congress and their spouses.
From a holdings standpoint, NANC’s top three positions are in Microsoft ( MSFT ), Amazon ( AMZN ), and Alphabet ( GOOG ) ( GOOGL ) with weights of 7.31%, 6.67%, and 5.91%, respectively.
KRUZ, on the other hand, has its three largest holdings in Magellan Midstream Partners (MMP), Microsoft (MSFT) and Energy Transfer (ET), which have weights of 3.44%, 2.55% and 2.24%, respectively. Additionally, both funds come with an expense ratio of 0.75%.
Regarding the launch of NANC and KRUZ, ETF Portfolio Manager Christian Cooper stated, “A quick online search shows how members of Congress are performing relative to the rest of the market. Congress outperformed the market and beat the SPY index in 2021 and 2022 . We believe that members of Congress have more information than the rest of us, and if they can trade on that information, we should be able to do the same, and now we can.”
KRUZ and NANC are not the first two politically charged ETFs to hit the streets. Other such funds include the God Bless America ETF (YALL), the American Conservative Values ETF (ACVF), the Point Bridge America First ETF (MAGA), and the Democratic Large Cap Core ETF (DEMZ).
Looking at intraday action on Tuesday, the major market averages gave up some of their gains as markets analyzed Powell’s comments.
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