An exchange-traded fund (ETF) that tracks the stock trades of Democratic members of Congress has outperformed the S&P 500 index since its launch in 2023.
What happened: THE Democratic ETF on Unusual Whales NANCin a nod to the former Speaker of the House Nancy Pelosihas seen a 30% increase since its launch on February 7, 2023. This growth outpaces the S&P 500 Index’s 24% gain over the same period, Business Insider reported.
The ETF’s performance is largely attributed to its significant investments in major technology companies, including Microsoft MSFT, Amazon AMZN, Apple AAPLAND Nvidia NVDA. These four companies represent the fund’s largest holdings, with Microsoft alone accounting for nearly 10% of the fund.
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The ETF includes tech giants such as Microsoft, Amazon, Apple, Nvidia, SalesforceAND Alphabet. These six stocks make up 32% of the fund’s total market value. The fund includes a total of 719 stocks.
It’s worth noting that the lawmakers tracked by the fund also hold shares in many of the same stocks popular among hedge funds. This has led to the fund’s impressive performance, despite continued scrutiny of stock trades by lawmakers.
In contrast, a Republican fund following a similar approach has lagged the market. The Republican Unusual Whales ETF, identified by the symbol “KRUZ,” has seen only a modest 15% gain since its launch.
Because matter: The Unusual Whales Democratic ETF was launched in response to the controversial stock trading activities of members of Congress. The issue has been in the spotlight for some time, with calls for a ban on congressional stock trading. In 2023, senators introduced a bill proposing a ban on congressional stock trading Kirsten Gillibrand (D-NY) art Josh Hawley (R-MO).
Despite the controversy, the Unusual Whales Democratic ETF continued to perform well, reflecting market confidence in stocks favored by Democratic lawmakers. This is also in line with the tendency of members of Congress to outperform the S&P 500 Index.
One of the most scrutinized members of Congress for his history of stock and options trading is Pelosi. After recently making more than $1 million from a deal in Nvidia, Pelosi revealed a new purchase of tech stocks by her and her husband, a venture capitalist Paul Pelosi.
This continued success and subsequent launch of the NANC ETF has brought the business activities of Democratic lawmakers into the spotlight.
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Photo of Nancy Pelosi by Gage Skidmore via Wikimedia Commons
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