Monitoring Exchange-Traded Funds (ETFs) that follow the stock transactions of Democrats and Republicans in Congress - Is it the Right Time to Invest?
New ETFs Mimicking U.S. Congress Members' Trading Unveiled
Two unique exchange-traded funds (ETFs), the Unusual Whales Subversive Democratic ETF (NANC) and the Unusual Whales Subversive Republican ETF (GOP), were introduced in the United States on February 7, 2023. These ETFs, designed to mirror the trading activities of U.S. Congress members, have generated significant interest among investors.
Differences in Portfolio Composition
The Democratic ETF (NANC) has a more concentrated portfolio, with its top 10 holdings accounting for nearly half of its value. The tech sector dominates this ETF, with Nvidia, Microsoft, Amazon.com, Alphabet Class C, and Apple among its top holdings. On the other hand, the Republican ETF (GOP) focuses less on high-tech stocks. Its top holdings, as of Aug. 27, include Comfort Systems USA, JPMorgan Chase, Nvidia, AT&T, Arista Networks, Chevron, Allstate, Intel, National Fuel Gas, and Fidelity National Information Services. The Republican ETF includes a bank, a telecom giant, energy companies, and an insurance company in its top holdings.
Divergent Concentration Levels
The Democratic ETF is more concentrated, with its top 10 holdings making up nearly half of its value. In contrast, the Republican ETF is less concentrated, with its top 10 holdings making up only about a third of the ETF's value.
Performance and Yield
Both ETFs have a small yield, below 1%, and an expense ratio of 0.74%. However, the Republican ETF offers a bit more of a dividend yield. As of Aug. 28, the performance of the Democratic ETF for the year to date, past 12 months, and 2024 are 13.52%, 20.33%, and 26.83% respectively. The performance of the Republican ETF for the same periods are 12.73%, 15.37%, and 14.45% respectively. It's worth noting that the Democratic ETF's performance has been better, but it has only had a short period of time to lay down a track record.
Tickers and Names
The Democratic ETF's ticker symbol is named for Nancy Pelosi, and the Republican ETF's was originally named for Ted Cruz, but was later changed to claim the ticker "GOP".
Interested investors can find data for the performance of these ETFs on Morningstar.com.
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