ETF Spotlight: NANC Climbs as Election Year Heats Up

The 17-month-old fund has risen nearly 22% year-to-date.

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The Unusual Whales Subversive Democratic Trading ETF (NANC), based on the investment practices of former U.S. House Speaker Nancy Pelosi, as well as other Democratic members of Congress and their spouses, has climbed more than 22% this year. 

NANC, which debuted in early 2023 and has $141 million in assets under management, has benefited from its 14% holding of artificial intelligence chip maker Nvidia Corporation—the largest in the fund's portfolio. Nvidia has nearly tripled year-to-date. The fund has a 0.76% expense ratio. 

"Nancy Pelosi and some other politicians have gained a reputation for being savvy investors," etf.com Senior Analyst Sumit Roy said. "The idea behind that is that she and other legislators have access to information the public doesn’t and that gives them a leg up when it comes to investing."

NANC's success has come during a heated U.S. Presidential cycle that has highlighted the influence of the country's highest-profile leaders and growing interest among investors to plow money into assets that dovetail with their political beliefs. Pelosi was a nemesis to former President Donald Trump's conservative administration. Earlier this week, she seemed to signal that Joe Biden should withdraw from the Presidential race. 

But funds have sprouted in recent years to offer Republican-leaning investors an alternative. The seven-year-old Point Bridge America First ETF (MAGA), which has $21 million in assets, has gained just 6% this year, while the $96 million American Conservative Values ETF (ACVF) has risen about 16%, according to etf.com data.  

Pelosi Adds Nvidia Shares

Multiple media organizations reported that between June 24 and July 1, Pelosi added 10,000 shares of Nvidia, whose share price has increased amid the growing use of artificial technology. Last month, Nvidia briefly held the world's highest market capitalization ahead of software giant Microsoft Corporation, which comprises a nearly 10% stake of NANC's holdings. 

Iconic tech companies and Magnificent Seven stalwarts Apple Inc., Alphabet Inc. (Google's parent company) and Amazon Inc. comprise roughly 5% shares, respectively. 

Microsoft and Apple have risen about more than 20% this year, while Alphabet and Amazon are up more than 30% during this period, despite a recent slowing of momentum in tech stocks. 

Read More: Investors Vote No on Political ETFs

James Rubin is a contributing editor for etf.com, where he produces the Morning Exchange and Weekly Exchange newsletters. A longtime financial writer, editor and book author, he formerly held positions as a news and markets editor for the Americas at CoinDesk, where he focussed on cryptocurrencies. 

He provided editorial guidance for a Wall Street Journal best-selling book on Bitcoin and oversaw a startup newsroom focused on digital financial assets. He has edited for TheStreet and Unchained, where he wrote daily news stories about the trial of fallen crypto entrepreneur Sam Bankman-Fried. His writing has also appeared in The Hollywood Reporter, Forbes.com, AdWeek, Bankrate, The Financial Brand and The Wall Street Journal. He has also written for Forbes Insights and the Economist Intelligence Unit, including papers presented at World Economic Forums in Davos and Mumbai. 

James is the co-author of The Urban Cyclist’s Survival Guide (Triumph Books) and has been interviewed about bike safety on a number of NPR affiliates. In a prior career, Rubin was a world-ranked tennis player, once competing in Wimbledon’s qualifying rounds. He speaks fluent German and is a graduate of the Columbia University Graduate School of Journalism and received his BA at Columbia University.

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