7 Things to Know About the NANC ETF Aiming to Track Nancy Pelosi Stocks

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  • Unusual Whales has submitted a proposal to list two ETFs that would track the activity of lawmakers and their related parties.
  • The ETFs drew inspiration from the successful trading of Nancy Pelosi and Ted Cruz.
  • One ETF would track the activity of Democrats, while the other would track the activity of Republicans.
NANC ETF - 7 Things to Know About the NANC ETF Aiming to Track Nancy Pelosi Stocks

Source: shutterstock.com/Imagentle

Speaker of the House Nancy Pelosi is well-known for making profitable and timely trades. However, it isn’t just Pelosi who has made unusually profitable trades in the past few years. Quiver Quant’s U.S. House Long-Short strategy has returned 12.75% in the past year, outperforming the S&P 500’s one-year loss of almost 12%. The strategy takes a long position in stocks that have been sold by members of the House and a short position in stocks that have been sold. Meanwhile, the Congress Long-Short strategy has returned 17.5% in the past year and operates in a similar fashion as the House strategy.

Now, investors may soon be able to invest in an exchange-traded fund (ETF) that follows the trading activity of lawmakers, their spouses, and their dependent children. The Unusual Whales Subversive Democratic Trading ETF seeks to follow the trades of Democratic lawmakers, while the Unusual Whales Subversive Republican Trading ETF seeks to follow the activity of Republican lawmakers. Let’s get into the details.

Seven Things to Know About the NANC and KRUZ ETF

  1. The Democratic ETF tracker would have the ticker NANC, while the Republican ETF would have the ticker KRUZ. These tickers reflect Pelosi and Texas Senator Ted Cruz.
  2. According to Unusual Whales, Pelosi currently owns 15 companies in her portfolio, including Tesla (NASDAQ:TSLA) and Visa (NYSE:V). Last year, the Speaker made an estimated $12 million in purchases.
  3. On the other hand, Cruz has only made an estimated two trades in the past three years and has considered introducing a bill that would ban Congressional trading.
  4. A ban on Congressional trading is “not going to happen” before November’s midterm elections, according to Oregon Senator Jeff Merkley.
  5. In total, Congress transacted about $355 million of trades last year. Members of Congress are required to disclose any trade over $1,000 within 45 days of the trade.
  6. The two ETFs would each have between 500 and 600 positions. If a politician sells out a position, the ETFs would follow along. Furthermore, the ETFs will have an expense ratio of 1%.
  7. Still, a study conducted in 2020 showed that Senators are just as bad as picking stocks as retail traders. Another study showed that House members and Senators have “mediocre” stock picking skills.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/09/7-things-to-know-about-the-nanc-etf-aiming-to-track-nancy-pelosi-stocks/.

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