How to Cash in on Congressional Stock Trades
Partisan ETFs, disclosure laws, and political investing are reshaping Wall Street opportunities.
For years, congressional stock trading has sparked outrage, suspicion, and fascination. Some lawmakers and their spouses appear to have uncanny timing in the market, buying or selling just ahead of major policy changes. While critics call it an insider advantage, others see an opportunity. Thanks to disclosure requirements and a new wave of politically themed exchange-traded funds (ETFs), everyday investors can now mirror the moves of America’s most powerful politicians.
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From Capitol Hill to Wall Street
The Stop Trading on Congressional Knowledge (STOCK) Act requires lawmakers to disclose trades above $1,000 within 45 days. Those reports, long buried in government databases, are now tracked by third-party platforms and ETFs. Among the most notable are the Unusual Whales Subversive Democratic Trading ETF (CBOE: NANC) and the Unusual Whales Subversive Republican Trading ETF (CBOE: GOP).
Launched in 2023, both ETFs attempt to replicate trades made by members of Congress and their families. The Democratic version leans heavily on technology and growth stocks like Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), and Apple (NASDAQ: AAPL). It also includes surprising plays like Artivion (NYSE: AORT) and Philip Morris (NYSE: PM).
The Republican version is broader, mixing traditional names such as JPMorgan Chase (NYSE: JPM), Chevron (NYSE: CVX), Intel (NASDAQ: INTC), and National Fuel Gas (NYSE: NFG) with trend-driven bets on iShares Bitcoin Trust ETF (NASDAQ: IBIT) and Comfort Systems USA (NYSE: FIX).
Performance has been striking. As of July 31, 2025, NANC had returned more than 71% since inception, trouncing GOP’s 39% and outperforming benchmark ETFs like the SPDR S&P 500 ETF Trust (NYSE Arca: SPY) and the Vanguard S&P 500 ETF (NYSE Arca: VOO).
The Politics of Profit
Politically aligned ETFs have mushroomed beyond the Unusual Whales pair. The Democratic Large Cap Core ETF (NASDAQ: DEMZ) and the American Conservative Values ETF (NYSE Arca: ACVF) target firms with partisan-friendly business models or campaign donation histories.
But while these funds wear their ideology on their sleeves, research shows their holdings overlap substantially with broad-market trackers such as Schwab U.S. Large-Cap ETF (NYSE Arca: SCHX). Expense ratios tell the real story. Whereas SCHX and VOO charge as little as 0.03%, NANC and GOP cost investors 0.74% annually. Over time, those fees eat into performance, raising questions about whether the political branding is worth the price.
Ohio State professor Itzhak Ben-David, in a 2023 study, argued that these partisan ETFs are essentially “expensive index funds.” His research showed that they often carry high fees while closely mirroring broad-market benchmarks, meaning investors may be paying extra largely for the political branding rather than meaningful portfolio differences.
Another new entrant is on the way: the Tuttle Capital Government Grift ETF (GRFT). Filed with the SEC in June 2025, GRFT aims to build a concentrated portfolio of 10–30 holdings based on congressional trades and presidential influence. The fund’s prospectus states it “is grounded in the belief that political actors … can influence market outcomes or possess information that materially affects security pricing.” Unlike NANC and GOP, which spread across more than 100 stocks, GRFT plans to layer congressional disclosures with real-time cues from the White House, including speeches, commentary, and corporate ties. The proposed fee is 0.75%, and a September 2025 launch has been floated.
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The Reform Push
These ETFs exist only because lawmakers can legally trade stocks. That reality is under increasing scrutiny.
Earlier this month, a Senate committee advanced the HONEST Act, formerly known as the PELOSI Act, which would ban lawmakers, presidents, vice presidents, and their families from trading individual securities.
Senator Josh Hawley, the bill’s sponsor, stated bluntly:
We have an opportunity here today to do something that the public has wanted us to do for decades, and that is to ban members of Congress from profiting on information that, frankly, only members of Congress have.
Even former House Speaker Nancy Pelosi, once a lightning rod in this debate, endorsed the measure. “We must have strong transparency, robust accountability and tough enforcement for financial conduct in office because the American people deserve confidence that their elected leaders are serving the public interest — not their personal portfolios,” Pelosi said in a statement.
If such legislation passes, funds like NANC and GOP could quickly become obsolete. For now, however, they continue to thrive on controversy.
Should You Follow the Politicians’ Playbook?
Investors tempted to mimic Congress should understand both the allure and the limits. Delays in reporting mean the trades aren’t actionable in real-time. High expense ratios demand above-market performance just to break even. And the strategy itself is under legal and ethical fire.
Still, the track record is hard to ignore. A 2024 Unusual Whales report found that more than 20 members of Congress earned nearly double the S&P 500’s return in the prior year. The appeal of “government grift,” as one proposed ETF bluntly described it, continues to capture attention.
For retail investors, the decision often comes down to balancing efficiency with conviction. Broad, low-cost funds like SPY, VOO, and SCHX remain unbeatable for long-term compounding. Yet for those who see politics as profit, partisan ETFs like NANC, GOP, DEMZ, and ACVF offer a way to ride Capitol Hill’s coattails.
The question isn’t whether lawmakers have an edge; they do. The question is whether you want to pay up to chase it, or stick with time-tested strategies. As the debate over congressional stock trading intensifies, the answer may depend less on Wall Street and more on Washington.
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