US Politicians are Gurus. Beat S&P 500. Follow !
US Politicians - great orators & great Investors.
Consistently beating the US market is one of the top achievements, many investors hope to attain.
Many members of US Congress, however, seem fairly skilled at achieving this feat.
Aware of this dynamic, many investors outside the Beltway wonder how they, can follow in the footsteps of these investing-adept lawmakers ?
It turns out you do not need to serve in the Senate or the House and rub shoulders with these elected leaders to gain the insights they seemingly possess.
The $UNUSUAL WHALES SUBVERSIVE DEMOCRATIC TRADING ETF(NANC)$ provides an exchange-traded fund (ETF) to expose investors to the stock trades of Democratic members of Congress, including their spouses.
NANC - YTD performance
Basis for following what the Democrats buy
While the financial media pays close attention to the stock trades of famous investors like Warren Buffett, Cathie Wood, and Bill Ackman, there is less coverage of politicians' trades -- except for the reporting of Unusual Whales, that reports on noteworthy stock trades including those of US politicians.
In early January 2024, Unusual Whales posted on X (formerly Twitter) with regard to the impressive investing performances of many members of Congress. (see below)
Although the stock trades of politicians are available to the public through the regulatory filings they are obligated to submit, it will be overwhelming for ordinary investors to keep track of all the transactions.
Unusual Whales, presents the information clearly and concisely.
As a result, many investors may be itching to trade like Rep. Brian Higgins (D-N.Y.) and Rep. Seth Moulton (D-Mass.), who had 239% and 80%, respectively, returns on their 2023 investments.
A who's who of "Magnificent 7" stocks
Subversive Capital — Manager of Unusual Whales Subversive Democratic Trading ETF, clarifies that it is not assuming a particular political position in operating the ETF.
Subversive Capital does "not express a view or opinion and only buy or sell what members of Congress hold."
Unsurprisingly, It turns out that Democrats in Congress are big fans of Magnificent 7 stocks. (see below)
Of the more than 750 holdings in the fund, $NVIDIA Corp(NVDA)$ , a leading artificial intelligence (AI) stock, is in the #1 spot, representing about 10.1% of the fund's holdings.
Most recently, the spouses of Sen. Tom Carper (D-Del.) and Rep. Nancy Pelosi (D-Ca.) bought Nvidia stock in March 2024 and November 2023, respectively.
Remaining Magnificent 7 names come in the form of the next four largest holdings, $Microsoft(MSFT)$ , Amazon, $Apple(AAPL)$ and $Alphabet(GOOG)$ , in that order.
Combined, the top 5 stocks represent about 35% of this ETF's holdings.
Remaining Magnificent 7 — Tesla & Meta Platforms, also figure prominently.
The electric vehicle (EV) maker is the 11th-largest holding, while the social media behemoth is the 18th-largest position.
The sixth-largest position is Salesforce, a leading cloud-based software company that helps businesses manage customer relationships, providing even more AI exposure for investors.
Add $NANC to your portfolio?
Is it necessary to invest in $NANC ETF in order to trade like Democrats in Washington?
Of course not!
It is possible to do the lengthy footwork oneself, sifting through regulatory filings and tracking the trades of individual politicians.
It just requires discipline and a fair bit of time.
On the flip side, the ETF saves investors a lot of time to achieve the same outcome.
All for an expense ratio of 0.75%, or $75 annually per $10,000 invested, not a lot of money if you asked me.
More importantly, the ETF has proven to be a success (so far), although past performance is no guarantee of future results.
For the record, since the ETF's inception on 02 Feb 2023, the Unusual Whales Subversive Democratic Trading ETF soared about +32% versus the $S&P 500(.SPX)$'s rise of 23%.
As of last Fri, 10 May 2024, $NANC ETF’s year to date returns stood at +13.19% (see above); while the S&P 500 index’s YTD was +10.12%.
FYI - Cathie Wood’s ARKK ETF’s year to date perform was -15.01%.
Need further convincing, it is time to do your own homework now…
Politics aside, this ETF will also appeal to investors interested in gaining exposure to the Magnificent 7 stocks since they occupy such sizable positions in the ETF.
Of course, the Magnificent 7 stocks are not invincible.
And the more than 700 stocks that make up the rest of the ETF holdings, help investors mitigate the risk of a downturn in the tech and AI industries.
My viewpoints: (mine and mine only)
As it is a relatively “young” ETF, it is important to dwell on the fundamentals, instead of getting over excited.
Market Cap - $77.04 Million
Trading Volume 41,357
Beta - N/A. Does not have enough price history.
52 weeks high - $34.77. Current price is closed to the peak.
I will continue to observe for a wee longer before making a decision.
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Never knew this, it’s funny
Well CPI is coming
Pls help to "Re-post". Tks! Rating is important (to me).
Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!
Great article, would you like to share it?
Great Article.