NANC vs KRUZ: Battle of the Congress Stock Trackers

NANC vs KRUZ: Battle of the Congress Stock Trackers

One of these congressional insider-inspired ETFs is beating the S&P 500.

kent
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Research Lead
Reviewed by: etf.com Staff
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Edited by: James Rubin

While Congressional approval ratings have trended near all-time lows, exchange-traded funds that track the investments of Congress members have performed much better. 

The Unusual Whales Subversive Democratic Trading ETF (NANC) and the Unusual Whales Subversive Republican Trading ETF (KRUZ) mimic the stock picks of opposing sides of the U.S. Congress. 

Unveiled in Feb. 2023, the strategies of these funds are based on the premise that members of Congress, such as Nancy Pelosi and Ted Cruz, have access to non-public information that can influence their investment decisions. By tracking the trades of these insiders and their spouses, the ETF aims to capitalize on their potentially advantageous knowledge. 

In this comparison, we analyze NANC and KRUZ, including their investment strategies, fees, assets, top holdings and historical performance and determine if they deserve a slot in your portfolio. 

What Is the NANC ETF?

NANC is the ticker symbol for the Unusual Whales Subversive Democratic Trading ETF, an exchange-traded fund that seeks to invest in equity securities purchased by Democratic members of the U.S. Congress and their spouses. 

According to Subversive, the fund will not consider investments by any U.S. Congressperson who is not registered as a member of the Democratic Party, or their spouse. 

The NANC symbol derives from Nancy Pelosi (D-Calif), who along with her husband Paul, is known for making winning stock picks, such as Nvidia Corp (NVDA), which is up over 200% in the past year. 

NANC ETF Top Holdings

TickerHoldingAllocation
NVDANvidia Corp12.89%
MSFTMicrosoft Corp9.12%
AAPLApple Inc4.28%
MINTPIMCO Enhanced Short Maturity Active ETF4.27%
GOOGAlphabet, Inc4.20%
AMZNAmazon.com Inc4.05%
CRMSalesforce Inc3.24%
NFLXNetflix Inc2.30%
CRWDCrowdstrike Holdings2.21%
DISThe Walt Disney Co1.67%

Data as of June 6, 2024.

What Is the KRUZ ETF?

KRUZ is the symbol for the Unusual Whales Subversive Republican Trading ETF, which is a fund that tracks the stock purchases made by Republican members of the U.S. Congress and their spouses.

According to Subversive, the fund will not consider investments by any U.S. Congressperson who is not registered as a member of the Republican Party, or their spouse. 

The KRUZ ticker symbol derives from Ted Cruz (R-Texas), whose trades are among the most watched in Congress. 

KRUZ ETF Top Holdings

TickerHoldingAllocation
JPMJPMorgan Chase & Co4.94%
NVDANvidia Corp2.66%
FIXComfort Systems USA Inc2.33%
ANETArista Networks Inc1.60%
UTHRUnited Therapeutics Corp1.53%
NFGNational Fuel Gas Co1.53%
INTCIntel Corp1.52%
ELVElevance Health Inc1.50%
TXNTexas Instruments Inc1.40%
SHELShell PLC1.35%

Data as of June 6, 2024.

NANC vs KRUZ Performance Comparison

TickerFundExpense RatioAUM1-Yr Return
NANCUnusual Whales Subversive Democratic Trading ETF0.76%$99.2M33.04%
KRUZUnusual Whales Subversive Republican Trading ETF0.83%$19.3M22.52%

Data as of June 6, 2024.

Key performance takeaway: The NANC ETF's 1-year performance outperforms the broader market's 27% gain, as measured by the S&P 500 ETF Trust (SPY), and is driven by its top holding, NVDA, which is up more than 200% in the past year. KRUZ had more exposure to energy and utilities stocks, which have performed well recently but not as well in 2023. Investors should keep in mind that past performance is no guarantee of future results.

Autopilot App, Nancy Pelosi Stock Tracker

For investors wanting to create their own Congress-inspired portfolios, an app, called Autopilot, allows its users to track and mimic the trades of high-profile investors from Congress members like Nancy Pelosi to famous investors like Warren Buffett and Michael Burry. 

Investments by members of Congress and their spouses must be disclosed pursuant to the Stop Trading on Congressional Knowledge Act (“STOCK Act”). Members of Congress must report each investment within 45 days or face financial penalties. 

To track and mimic trades of asset managers like Buffett or Burry, the app pulls data via their federally required 13-F filings, made public quarterly. 

Bottom Line on Tracking Legislators’ Stock Picks

The NANC and KRUZ ETFs offer an unconventional way to invest in the U.S. stock market. However, due to their recent launch and the inherent uncertainty of their underlying strategies, careful consideration is essential before investing in either of these funds.

As with any investment security, past performance is not necessarily indicative of future results. There's no guarantee that following congressional trades will lead to superior investment returns compared to a broader market approach. The effectiveness of this strategy remains to be seen. Furthermore, the trade data is several weeks old by the time investors see the stock picks. 

As always, it's wise for investors to weigh the potential benefits against the risks and how they may align with their investment goals, risk tolerance and personal values. 

Kent Thune is Research Lead for etf.com, focusing on educational content, thought leadership, content management and search engine optimization. Before joining etf.com, he wrote for numerous investment websites, including Seeking Alpha and Kiplinger. 

 

Kent holds a Master of Business Administration (MBA) degree and is a practicing Certified Financial Planner (CFP®) with 25 years of experience managing investments, guiding clients through some of the worst economic and market environments in U.S. history. He has also served as an adjunct professor, teaching classes for The College of Charleston and Trident Technical College on the topics of retirement planning, business finance, and entrepreneurship. 

 

Kent founded a registered investment advisory firm in 2006 and is based in Hilton Head Island, SC, where he lives with his wife and two sons. Outside of work, Kent enjoys spending time with his family, playing guitar, and working on his philosophy book, which he plans to publish in the coming year.