(Bloomberg) -- Americans convinced the country’s powers-that-be enjoy some sort of edge when it comes to investing now have an easy way to piggyback the personal portfolios of lawmakers.
Two new exchange-traded funds are launching Tuesday that will mirror the stock trades of members of US Congress. The Unusual Whales Subversive Democratic ETF (ticker NANC) and the Unusual Whales Subversive Republican ETF (KRUZ) are equity-based portfolios built using the financial disclosures from members of each party — and their spouses.
The ETFs are looking to capitalize on the controversy surrounding stock transactions — some very profitable — made by lawmakers or those closest to them over the past few years.
That has powered a number of bills designed to overhaul or update the 2012 law governing such disclosures, which have largely stalled despite bipartisan support. Current rules state that members of Congress must disclose any transactions valued at more than $1,000 within 45 days.
“We believe 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,” Subversive Capital Advisor’s Christian Cooper, portfolio manager of both funds, said in a press release. “Now we can.”
NANC and KRUZ are a joint effort between investment firm Subversive Capital and Unusual Whales, an options and equity data platform. The ETFs buy and sell securities based on an analysis of the disclosures by Unusual Whales.
Both funds are actively managed and carry an annual fee of 0.75%. At launch, the NANC portfolio consists of nearly 800 stocks while KRUZ has more than 500 securities.
The pair are “vastly different,” Cooper said by phone, with KRUZ leaning toward energy and gambling stocks while NANC is tilted toward tech shares.
Congress’ holdings overall outperformed the S&P 500 by about 1.2% in 2021, according to the press release, and by roughly 17.5% on average in 2022.
“If Congress can outperform the market and sleep at night, why can’t I?” Cooper said.
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