An easy way to buy the same stocks members of Congress invest in
Ever wanted to invest like a congressman?
Yes, trusting the judgment of US senators and representatives on anything seems a little strange to us too. However, not everyone agrees.
And soon, two exchange-traded funds (ETFs) could let you mirror DC insider trading, according to a Sept. 15 regulatory filing, Bloomberg reports.
ETFs would be constructed to mimic the personal portfolios of members of Congress, based on the financial disclosures that federal elected officials must make. They are:
- The Unusual Whale Subversive Democratic Trading ETF (Ticker NANC)
- The Unusual Whale Subversive Republican Trading ETF (KRUZ)
The funds will be made up of hundreds of securities, which will be bought and sold based on the movements members of Congress make with their investments.
According to Bloomberg:
“The proposed funds would tap into a controversy over stock trading by lawmakers that sparked a flurry of bills to revise or update a 2012 law that governs disclosure, which have largely stalled despite bipartisan support. Currently, members of Congress are required to disclose any securities transaction worth more than $1,000 within 45 days.
If you want to run the risk of riding in the wake of your favorite politicians, it will cost you dearly.
Bloomberg reports that the ETF’s expense ratio will be 1%, well above the typical fees you’d pay to invest in good old-fashioned index funds.
For more on the right investments, check out “9 Tips for Healthy and Successful Stock Investing”.
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