Members of Congress are active in financial markets, participating in around 11,000 trades worth over $1 billion collectively in 2023, according to a report by The National Desk. The report further states that the Stop Trading on Congressional Knowledge Act of 2012, or STOCK Act, made it illegal for members of Congress and high-level government officials to use insider information to trade stocks and required them to report all stock trades within 45 days.
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All trades made by Senators are available on the United States Senate Financial Disclosures website, and trades made by members of the House of Representatives are available on the Clerk of the House of Representatives website. Studies show that, even with the STOCK Act, these government officials still profit significantly from their trades and sometimes beat the market.
While all members of Congress' trades are publicly available online, it can be too time-consuming to replicate every single one. However, Subversive ETFs have created two ETFs that track these congressional trades, making it easy for the average person to profit easily.
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The Subversive Unusual Whales Democratic ETF NANC tracks all trades by Democratic members of Congress and their spouses, according to the company's website. A relatively new fund created in February 2023, NANC has grown 30.21% this year, outperforming the S&P 500 and Dow Jones, which have grown 25.07% and 18.20%, respectively. NANC's fund NAV has increased by 31.36% since its inception. The fund's biggest holding is Nvidia (NVDA), which comprises 13.39% of the fund's net assets.
The website also claims that the Subversive Unusual Whales Republican ETF KRUZ, contrary to NANC, tracks all trades made by Republican members of Congress and their spouses. While sharing the same inception date as NANC, KRUZ doesn't share the same returns. KRUZ has grown 20.15% in the last year, which beats the Dow but not the S&P. The fund's NAV has increased by 14.77% since its creation. KRUZ's biggest holding is JPMorgan Chase & Co. (JPM), which makes up 3.89% of the fund’s assets.
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