3 Things to Know as NANC ETF, KRUZ ETF Start Trading


  • Politics-based Unusual Whales Subversive Democratic Trading ETF (NANC) and Unusual Whales Subversive Republican Trading ETF (KRUZ) began trading today.
  • The funds track stock disclosures from members of each party and their spouses when applicable.
  • Featuring different profiles, the NANC ETF and the KRUZ ETF provide intriguing ideological insights.
NANC ETF - 3 Things to Know as NANC ETF, KRUZ ETF Start Trading

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As the State of the Union address last night demonstrated, not much love exists between Democrats and Republicans. Nevertheless, Subversive Capital Advisor offers a mechanism for retail investors to capitalize on the political circus, launching today the Unusual Whales Subversive Democratic Trading ETF (NYSEAMERICAN:NANC) and the Unusual Whales Subversive Republican Trading ETF (NYSEAMERICAN:KRUZ). Both the NANC ETF and KRUZ ETF allow anyone to trade alongside influential policymakers.

According to a Bloomberg report, the two exchange-traded funds will track the stock disclosures of members of both parties, including their spouses. Per the news agency, “Current rules state that members of Congress must disclose any transactions valued at more than $1,000 within 45 days.” Christian Cooper will act as the ETFs’ Portfolio Manager.

“We have partnered with Unusual Whales to develop ETFs that will allow investors access to the approximate holdings of members of Congress in both parties,” stated Cooper per the accompanying press release. “Subversive does not express a view on the NANC and KRUZ underlying equities, rather, we buy or sell securities based on Unusual Whales’ reporting of what members of Congress disclose they hold.”

Undergirding fundamental enthusiasm for the NANC ETF and the KRUZ ETF stands the idea that the powerful enjoy superior resources or information. Cooper claims “Congress has outperformed the market and beat the SPY index in 2021 and 2022.”

Though a popular idea, NPR noted in 2021 that debate clouds the issue. According to academic data gathered in the past decade, evidence indicates “lawmakers are not good at picking stocks.”

Still, those who wish to mix politics into their portfolio can acquire the NANC ETF or the KRUZ ETF (or both.) Below are three things to know.

NANC ETF Focuses on the Future

A true visionary, John F. Kennedy left his mark in American politics, in large part because he was ahead of his time. While the Democratic party evolved over the decades, it still maintains vestiges of Kennedy’s pioneering spirt. Indeed, the NANC ETF reflects the optimism of a brighter future with its top holdings.

Ranking in first place stands software giant Microsoft (NASDAQ:MSFT). However, coming in close behind are the other top-tier technology giants: Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Apple (NASDAQ:AAPL). As of this writing, you must go to fifth place to find a New York Stock Exchange-listed enterprise. Even then, it’s cloud-based software firm Salesforce (NYSE:CRM).

Exactly as Cooper told Bloomberg in an interview, the NANC ETF leans heavily toward tech firms. Presumably, the fund will be volatile during cycles of rising borrowing costs. However, over time, it should outperform its conservative counterpart.

KRUZ ETF Aligns With the Pragmatic

One of the great American success stories, Ronald Reagan jumped from the box office to the White House. Despite the contentiousness of his politics, Reagan won his re-election bid in 1984 in a stunning landslide victory. Much of his popularity centers on his pragmatic conservatism. Sure enough, that spirit catalyzes the philosophy of the KRUZ ETF.

Ranking in first place stands Magellan Midstream Partners (NYSE:MMP), which owns ammonia and petroleum pipelines. In a nod to bipartisanship, second place belongs to Microsoft. Still, as Cooper pointed out, the KRUZ ETF leans heavily toward the energy sector. Energy Transfer (NYSE:ET) and Shell (NYSE:SHEL) make up the other hydrocarbon specialists in its top 10 holdings.

Even as President Joe Biden admitted during his address to the nation, oil firms will command relevance for years. Therefore, the GOP-inspired fund may perform better in the near and intermediate terms, though the longer term remains a question.

Either Option May Work

As Bankrate pointed out, “A well-diversified ETF such as one based on the S&P 500 can beat most investors over time, making it easy for regular investors to do well in the market.” Further, the resource noted “ETFs tend to be less volatile than individual stocks, meaning your investment won’t swing in value as much.”

Therefore, given the broad range of securities involved, investors may do well with either option. Primarily, the main difference between the NANC ETF and the KRUZ ETF centers on ideology. While NANC focuses on what could be, KRUZ addresses what is.

On the date of publication, Josh Enomoto did not have (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/2023/02/3-things-to-know-as-nanc-etf-kruz-etf-start-trading/.

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