How Congress-Tracking ETFs Reacted to the Market Drawdown
The performance gap between ETFs tracking Democratic and Republican congressional trading has widened this quarter amid recent market turbulence, with the Unusual Whales Subversive Democratic Trading ETF (NANC) seeing stronger flows despite weaker returns compared to its GOP counterpart.
NANC has underperformed the Unusual Whales Subversive Republican Trading ETF (KRUZ) by more than 10 percentage points during the three-month period, according to etf.com data. While NANC is down 10.5% over three months, KRUZ has nearly broken even with just a 0.2% decline during the same period.
Despite this performance gap, investors continue showing stronger interest in NANC, which has attracted $14.1 million in net inflows over three months compared to $9.8 million for KRUZ, according to etf.com data. The Democratic-aligned fund also maintains a larger asset base at $195.8 million versus $53.9 million for the Republican-focused ETF.
These congressional-trading ETFs have gained attention as they offer retail investors exposure to portfolios resembling those of elected officials, raising important questions about potential conflicts of interest when lawmakers with advance knowledge of legislation make market transactions that could benefit from their policy decisions.
Source: etf.com ETF Comparison Tool
Comparing ETFs is essential for identifying the right investment that aligns with your risk tolerance, time horizon and financial goals. The ETF Comparison Tool at etf.com eliminates guesswork by offering a clear, side-by-side breakdown of critical metrics. Give it a try right here.
The performance divergence comes amid heightened market volatility triggered by White House tariff actions. On April 2, President Donald Trump announced a tariff increase that sent markets plunging, though they subsequently rebounded after he announced a 90-day pause on most tariffs.
During this period of volatility, recent stock trading by lawmakers has drawn renewed attention to congressional investment practices. Rep. Marjorie Taylor Greene (R-GA) made headlines last week when she purchased shares in Amazon.com Inc. (AMZN), Tesla Inc. (TSLA) and Apple Inc. (AAPL) just before the tariff pause announcement, according to People.com reporting. Greene has attributed these trades to her financial advisor and denied any wrongdoing.
The scrutiny of congressional trading gained momentum following the notoriety of former House Speaker Nancy Pelosi's (D-CA) stock-trading success in recent years. Trades by legislators from both parties have fueled debate about potential conflicts of interest when lawmakers with access to privileged information make investment decisions
These high-profile trading activities highlight the investment strategies reflected in both congressional ETFs. Looking at their underlying holdings reveals distinct investment patterns along party lines.
NANC's top holdings are tech-heavy, with Nvidia Corp. (NVDA) (8.9%), Microsoft Corp. (MSFT) (8%) and AMZN (5.2%) leading the portfolio, according to etf.com data. KRUZ shows more balanced sector allocation with JPMorgan Chase & Co. (JPM) (4.3%), AT&T Inc. (T) (2.9%) and Comfort Systems USA Inc. (FIX) (2.9%) as its largest positions.
The recent trading activity has rekindled reform efforts. Rep. Alexandria Ocasio-Cortez (D-NY) has advocated for a complete ban on congressional stock trading to restore public trust, while Sen. Elizabeth Warren (D-MA) has expressed concern about potential conflicts of interest, warning that Americans shouldn't have to question whether lawmakers are making decisions for personal financial gain.Permalink | © Copyright 2025 etf.com. All rights reserved
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

USA Today
28 minutes ago
- USA Today
Will Trump invoke the Insurrection Act? 'We'll see,' he says
Will Trump invoke the Insurrection Act? 'We'll see,' he says Show Caption Hide Caption Anti-ICE raid demonstrators protest into fourth night Anti-immigration raid protests are continuing into the fourth night as the Pentagon deployed active-duty U.S. Marines. President Donald Trump mulled invoking the Insurrection Act, which would give him more leeway to use the military for domestic purposes, as he deploys troops to Los Angeles in response to protests prompted by ICE raids in the region. "If there's an insurrection, I would certainly invoke it,' Trump said June 10 during an event in the White House. 'We'll see. But I can tell you, last night was terrible. The night before that was terrible." Trump deployed the California National Guard to Los Angeles over the objection of Gov. Gavin Newsom, sparking a lawsuit from the state. Marines were also sent to help the guard after protests erupted over his immigration enforcement efforts. The troops are limited to protecting federal property and law enforcement officers. The Insurrection Act would give Trump authority to use them more broadly. More: 'High-stakes game': Trump-Newsom clash pits two political heavyweights Trump said there were parts of Los Angeles on June 9 where "you could have called it an insurrection. It was terrible." Newsom described Trump's actions as "the acts of a dictator" and accused the president of 'inciting and provoking violence,' 'creating mass chaos,' and 'militarizing cities.' Legal experts say invoking the Insurrection Act is an extreme step. It has been done 30 times in U.S. history. "The invocation of it would be viewed as a pretty dramatic act," said Duke Law Professor H. Jefferson Powell. Powell said the law is "dangerously broad." The last time the Insurrection Act was invoked was in May 1992, by President George H.W. Bush at the request of California's governor, to quell rioting in Los Angeles after four White police officers were acquitted for beating Black motorist Rodney King.


Bloomberg
28 minutes ago
- Bloomberg
Hegseth Defends Trump Decision to Send Marines to Los Angeles
Defense Secretary Pete Hegseth says President Donald Trump was legally allowed to deploy Marines into Los Angeles, telling Congress that the Trump administration wants to protect immigration agents and keep demonstrations there from getting out of control. The deployment is estimated to cost $134 million and last 60 days. (Source: Bloomberg)

Yahoo
29 minutes ago
- Yahoo
US still dependent on Canadian oil, despite Trump's claims, Cenovus CEO says
CALGARY (Reuters) -The U.S. is still reliant on Canadian oil imports, despite claims made by U.S. President Donald Trump, Cenovus Energy's CEO said on Tuesday at a conference in Calgary, Alberta. Trump has threatened on-again, off-again tariffs on Canada's oil, of which nearly 4 million barrels per day are exported to the United States. Canada also remains dependent on U.S. energy systems, Cenovus CEO Jon McKenzie said, adding the country must diversify its customer base. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data