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There are two ETFs that track the investments of members of Congress.
It has been said that there is an ETF that tracks just about anything you want to invest in, including the investments of U.S. Congress members.
That opportunity is afforded by a money manager called Tidal Financial Group through its brand of Subversive ETFs. They offer two ETFs, one that mirrors the investments made by Republican members of Congress and their spouses, and one that tracks the investments of Democratic members of Congress and their spouses.
Which ETF has performed better? Let’s take a look at each.
Republicans Loading up on Bitcoin
The Unusual Whales Subversive Republican Trading ETF (NYSE:GOP) tracks how Republican members and their spouses are investing, thanks to the Stop Trading on Congressional Knowledge Act, or STOCK Act, which requires these investments to be disclosed. Unusual Whales is a company that tracks Congressional trading, among other things.
This fund currently holds 155 stocks and investments, with the largest holding, as of April 30, being the iShares Bitcoin Trust ETF (NASDAQ:IBIT), representing 4.7% of the portfolio. JPMorgan Chase (NYSE:JPM) is right behind it, accounting for 4.6% of the portfolio, while Comfort Systems (NYSE:FIX), a mechanical and electrical contractor, makes up 3.6% of the portfolio. Rounding out the top five are AT&T (NYSE:T) and NVIDIA (NASDAQ:NVDA), both at 2.8%.
About 80% of the fund is in large caps, while 13% is in midcaps and the rest in small or micro-caps. It is considered a blend fund and more value-oriented than its Democratic counterpart. Financials are the largest sector in the fund, representing 13%. It also has more diversity with 90% invested in the U.S. and about 10% in Canada and various European stocks. Further, its top 10 holdings account for 29% of the assets.
Year-to-date, the fund is up 2% and has a one-year return of 7.1%. Since inception if February of 2022, it has an average annualized return of 10.9%, which is below the S&P 500 three-year annualized return of 13.1%. It has $53 million in assets under management.
Democrats Pile Into Magnificent 7 Stocks
The Unusual Whales Subversive Democratic Trading ETF (NYSE:NANC) is larger than its Republican counterpart, with $212 million in AUM.
This ETF has a similar number of holdings, 159 — and is more growth-oriented than the Republican ETF. Its top five holdings are dominated by Magnificent 7 stocks, with NVIDIA the largest, representing 9.6% of the portfolio. Microsoft (NASDAQ:MSFT) is second at 8%, followed by Amazon (NASDAQ:AMZN) at 5.2%. Salesforce (NASDAQ:NYSE:CRM) is next at 4.1% while Alphabet (NASDAQ:GOOG) accounts for 4.0%.
This ETF is decidedly more top-heavy with the top 10 holdings making up 47% of assets. It is also 94% in large caps, followed by 2.4% in mid-caps and 2.9% in small can micro caps. Further, 97% is invested in U.S. companies. As mentioned, it is also more growth-oriented than the Republican ETF with 32% of the portfolio in technology services stocks, and 16% in electronic technology.
As for returns, the Democratic ETF is up 1.6% YTD, slightly below the Republican ETF, but it has a higher one-year return of 11.6%. Further, it has performed much better than the Republican ETF since inception in 2022, with an average annualized return of 22.6%, beating the S&P 500.