Since its creation in 2012, Reddit’s r/WallStreetBets community has sought to empower the retail trader, or the little guy. Now, the WallStreetBets decentralized application (WSBDApp) has announced that it has teamed up with Digital Markets to create an exchange-traded fund (ETF), the INSDR ETF.
Specifically, the Insider Portfolio ETF is designed to track Nancy Pelosi and her husband’s stock holdings. Because Pelosi is the Speaker of the House, many investors assume she may know more about macroeconomic factors and stocks than the average retail trader. Therefore, the ETF will track her trading strategies.
Here’s what investors should know about the fund.
r/WallStreetBets Announces the INSDR ETF
According to a supplemental document, the INSDR ETF has already begun trading on the MERJ exchange. MERJ is a licensed global securities exchange located in Seychelles. The exchange leverages blockchain technology to “create the world’s first truly global, direct access end-to-end regulated exchange” constructed for the digital world. The exchange is also different from others in that it’s open 20 hours a day. Eventually, trading will transition to a 24-hour, nonstop schedule.
As mentioned, the INSDR ETF will include the companies listed in Pelosi’s portfolio, such as Tesla (NASDAQ:TSLA), Disney (NYSE:DIS) and Netflix (NASDAQ:NFLX). To do this, the ETF will utilize UnusualWhales’ politician stock tracker. What’s more, the ETF will regularly rebalance to reflect any changes the Speaker of the House makes. The founder of r/WallStreetBets, Jaime Rogozinski added the following about the fund:
“If you are not blessed with the financial savviness of the U.S. Congress members, the world of investing can be inaccessible and intimidating to the novice investors we know as constituents […] In these turbulent economic times, not only Americans but the entire global community can look to our national leadership for unparalleled investing advice, and it’s never been easier with the introduction of our Insider Portfolio.”
That said, the INSDR ETF may actually be short-lived. Why? Because the House Administration Committee is currently drafting up legislation to prevent Congress members from trading stocks.
Several versions of the Congressional trading ban legislation are currently under review. One version outright bans members of Congress from trading. Another would make members place their portfolios in a blind trust. The blind trust would be managed by an “independent trustee” who would make portfolio moves under their personal discretion.
Interestingly enough, though, Pelosi is actually the one who “greenlighted” this plan. The legislation is expected to be completed and voted on later this year.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
