- A new exchange-traded fund based on congressional stockholdings will launch on Tuesday.
- The investment should be profitable, but it casts a shadow over lawmakers.
- “90% of it is a good performing product and 10% of it is a disgrace,” the fund manager told Insider.
A portfolio manager at two niche exchange-traded funds that invest in the same individual stocks told Insider that congressional leaders from both parties are pouring in money.
Christian Cooper, who co-manages a Democratic-themed fund ($NANC) and a Republican-themed fund ($KRUZ), said: It should be done,” he said.Created by an investment company disruptive capital and Unusual Whales, an online trading hub.
twin offerings Originally popped up last fall House Democratic leaders are expected to start trading on Tuesday as they drag out the legislative process.
According to a press release about the new fund, parliamentary holdings will be SPY Index Fund Almost 18%. As Congress grapples with declining approval rates and increasing ethical scrutiny, the timing and frequency of investments by elected officials, their spouses, dependents, and even senior Capitol Hill officials have raised alarm bells in recent years. is ringing
Insider’s “Conflict Congress” project identified dozens of congressmen who violated the Stop Trading in Congressional Knowledge (STOCK) Act by failing to disclose their stock trades on time.
Last week, Democratic lawmakers, including Rep. Abigail Spanberger of Virginia, an outspoken supporter of the ban, sent a letter to Speaker Kevin McCarthy urging him to follow his plan to “change current behavior.”
Cooper, who is in favor of Congress’ stock trading ban, said of the advocacy element included in the new fund’s announcement that it was “trying to influence a change in results.”
“I think the chances of a congressional deal being banned are close to zero,” Cooper said, adding, “A Congress so divided would never act in the best interests of the American people.
Cooper said the two funds, whose ticker symbols intentionally wink to Democrat Nancy Pelosi of California and Republican Senator Ted Cruz of Texas, track deals by all incumbents. said it provides a window into what parties value most.
“You can see the political differences in what they hold,” he said, adding that the economic snapshots “reflect vastly different worldviews” and “provide vastly different hopes for the future.” It reflects,” he added.
Cooper said he wasn’t free to discuss specific stakes before launch, but Democrats tended to be more “tech-heavy,” while Republicans were most interested in profiting from vices. He said that there seems to be
“It’s usury loans. It’s vascular disease. It’s gambling. It’s tobacco,” he said of Republican investment priorities.
Cooper said he found one nexus that raised eyebrows: the tobacco giant Philip Morris.
“The only common holding among the top 10 companies in both funds is Philip Morris,” he said. “And I think it’s unusual for a company that is among the top lobbyists in the country to be among the top holding companies.”