Two ETFs that will track the trades of members of Congress are in the works, reports an article in Bloomberg. According to a regulatory filing on September 15th, both the Unusual Whales Subversive Democratic Trading ETF and the Unusual Whales Subversive Republican Trading ETF would use the financial disclosures of Congresspeople from their respective parties to build portfolios of 500 to 600 holdings. When a lawmaker sells a position, the ETFs will follow their lead and sell, too.
Members of Congress are now required to disclose any trades of more than $1000 within 45 days, and while there have been proposals to update the 2012 law that governs financial disclosures, nothing has been passed. Meanwhile, the online financial community is often abuzz with every financial move politicians make, and the ETFs are sure to tap into that obsession. The funds will likely attract a lot of intrigued investors, and if the politicians are making savvy moves, the funds’ assets could have the potential to generate profitable returns.
According to the filing, both funds will only include equity holdings and charge a 1% expense ratio. Michael Auerbach and Christian Cooper are listed as the funds’ portfolio managers, Bloomberg cites.