New ETFs Track Congressional Stock Trades for Democrats and Republicans

Two new exchange-traded funds (ETFs) have launched, allowing investors to mirror the stock trades of U.S. lawmakers. The Democratic-focused ETF, symbol NANC, and the Republican-focused ETF, symbol GOP, began trading on February 7, 2023. Both carry an expense ratio of 0.74%, charging $7.40 annually per $1,000 invested.

The funds tap into the controversial practice of Congressional stock trading, where legislators often possess insider knowledge. While critics argue for a ban on such trading, these ETFs capitalize on the trend by tracking disclosed transactions. NANC's ticker nods to Nancy Pelosi, while GOP reclaims the symbol from an older political ETF.

Performance data remains limited given their recent launch. The products arrive amid growing scrutiny of politicians' market activity, offering a novel way for retail investors to follow Washington's money moves.