NANC vs KRUZ: Battle of the Congress Stock Trackers
One of these congressional insider-inspired ETFs is beating the S&P 500.
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
Ticker | Holding | Allocation |
NVDA | Nvidia Corp | 12.89% |
MSFT | Microsoft Corp | 9.12% |
AAPL | Apple Inc | 4.28% |
MINT | PIMCO Enhanced Short Maturity Active ETF | 4.27% |
GOOG | Alphabet, Inc | 4.20% |
AMZN | Amazon.com Inc | 4.05% |
CRM | Salesforce Inc | 3.24% |
NFLX | Netflix Inc | 2.30% |
CRWD | Crowdstrike Holdings | 2.21% |
DIS | The Walt Disney Co | 1.67% |
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
Ticker | Holding | Allocation |
JPM | JPMorgan Chase & Co | 4.94% |
NVDA | Nvidia Corp | 2.66% |
FIX | Comfort Systems USA Inc | 2.33% |
ANET | Arista Networks Inc | 1.60% |
UTHR | United Therapeutics Corp | 1.53% |
NFG | National Fuel Gas Co | 1.53% |
INTC | Intel Corp | 1.52% |
ELV | Elevance Health Inc | 1.50% |
TXN | Texas Instruments Inc | 1.40% |
SHEL | Shell PLC | 1.35% |
Data as of June 6, 2024.
NANC vs KRUZ Performance Comparison
Ticker | Fund | Expense Ratio | AUM | 1-Yr Return |
NANC | Unusual Whales Subversive Democratic Trading ETF | 0.76% | $99.2M | 33.04% |
KRUZ | Unusual Whales Subversive Republican Trading ETF | 0.83% | $19.3M | 22.52% |
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.