Intro

This chapter explores the idea of mimicking the stock trading behaviors of Congress members through specific exchange-traded funds (ETFs). It examines the performance, strategies, and rising interest in portfolios influenced by political figures.

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Episode notes

Zach Evens, a passive strategies analyst for Morningstar Research Services, discusses two ETFs that use data from Unusual Whales to track congressional stock trades. He explains why investors might be drawn to these funds and the potential risks that they face.

Key Takeaways:

Why Investors May Want to Follow Congressional Stock Trades

Are Members of Congress Good at Picking Stocks?

The Firms Behind the ETFs: Subversive Capital and Unusual Whales

Limitations of the Data on Congressional Stock Trades

How Democrats and Republicans Invest Differently

Both the Democratic and Republican ETFs Favor Tech Stocks

How Outsize Tech Exposure Has Affected the Performance of These ETFs

Why Investors Face Concentration Risk With Thematic Funds Like Congressional ETFs

Why the ‘Black Box’ of Congress’ Investing Strategy Is Risky for Investors

Key Takeaways on Investing in Congressional ETFs

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