Why Congress ETF Funds Are Attracting Investor Attention—And Whether You Should Care

The idea of ordinary investors following in the footsteps of members of Congress has become a reality with the launch of specialized investment funds designed to mirror their stock transactions. These Congress ETF products—officially known as the Unusual Whales Subversive Democratic ETF (trading under ticker NANC) and the Unusual Whales Subversive Republican ETF (now trading as KRUZ)—launched in February 2023 and have sparked considerable debate in financial circles. But before you decide whether to invest alongside lawmakers, it’s worth understanding what these funds actually do and how they’ve performed.

The Controversial World of Congressional Stock Trading

The fundamental issue surrounding Congress ETFs centers on a persistent ethical question: should members of the legislative branch be allowed to trade stocks at all? These officials often possess material knowledge about upcoming legislation, regulatory changes, and government policy decisions before the public does. They’re also frequently lobbied by corporations seeking to influence their votes. This creates an obvious conflict of interest, which is why transparency advocates have called for stricter rules or outright bans on congressional trading.

However, legislative action on this front remains limited. In the meantime, lawmakers continue to buy and sell securities, and those transactions are publicly disclosed. The creators of these Congress ETF funds realized that this disclosure data could be leveraged—turning lawmakers’ investment decisions into a template that retail investors could follow through an easy-to-trade fund structure.

Two Sides of the Political Divide: Democratic and Republican Congress ETF Strategies

Both Congress ETF vehicles charge an annual expense ratio of 0.74%, which translates to $7.40 per year on a $1,000 investment. They hold different portfolios based on the actual stock purchases and sales made by members from each party. Let’s examine what each fund is attempting to do.

The Democratic Congress ETF: Tech-Heavy and High-Turnover

The Unusual Whales Subversive Democratic ETF holds 149 different stock positions, but its portfolio is heavily concentrated in a handful of mega-cap technology companies. The fund’s top 10 holdings account for nearly 50% of its total value. At the top of the list are Nvidia (10.45% allocation), Microsoft (7.93%), Amazon (5.20%), Alphabet (4.29%), and Apple (3.71%). These positions reflect what Democratic lawmakers have been buying, and notably, many are members of the so-called Magnificent Seven—the elite group of mega-cap tech stocks that have driven much of the market’s gains in recent years.

This concentration can work in your favor when these companies are performing well, but it also magnifies losses if they stumble. Additionally, this fund exhibits high portfolio turnover of 62%, meaning the underlying positions change frequently to match the ongoing trading activity of Democratic members of Congress.

The Republican Congress ETF: More Diversified and Income-Oriented

The Unusual Whales Subversive Republican ETF takes a notably different approach, holding 143 positions with its top 10 making up only about one-third of the fund’s value. The Republican portfolio reveals distinct preferences: rather than betting heavily on tech, it includes more traditional sectors. Top holdings include Comfort Systems USA (5.02%), JPMorgan Chase (4.78%), Nvidia (3.49%), AT&T (2.74%), Arista Networks (2.46%), Chevron (2.12%), Allstate (2.12%), and Intel (2.09%).

This broader diversification means the fund isn’t as dependent on any single sector’s performance. Additionally, the Republican Congress ETF portfolio leans toward dividend-paying stocks, offering a modest yield advantage over its Democratic counterpart—though both funds’ yields remain under 1%.

How These Congress ETF Funds Have Actually Performed

Tracking investment performance is challenging with such young funds, but historical data through late 2025 provides some initial perspective. When compared to the benchmark Vanguard S&P 500 ETF (VOO):

Year-to-Date Returns (through mid-to-late 2025): The Democratic Congress ETF delivered 13.52%, the Republican version 12.73%, while the broad market index returned 11.44%.

12-Month Returns: The Democratic fund gained 20.33%, Republican fund 15.37%, and the S&P 500 averaged 17.75%.

2024 Full Year: The Democratic ETF surged 26.83%, Republican ETF returned 14.45%, and the S&P 500 finished with a 24.98% gain.

The Democratic Congress ETF clearly has outpaced its Republican counterpart, primarily because of its significant exposure to those high-flying technology stocks that have delivered exceptional returns. However, it’s important to remember that neither fund has accumulated even three full years of performance history, making it premature to draw definitive conclusions about long-term suitability.

Should You Invest in These Congress ETF Funds?

While there’s certainly novelty value in a Congress ETF product that lets you mirror the trades of elected officials, investment decisions should rest on more than curiosity. Consider these factors:

The Expertise Question: Members of Congress may have informational advantages regarding legislation and regulation, but this doesn’t make them particularly skilled stock pickers. They’re politicians, not professional investors. Having advance knowledge of policy doesn’t necessarily translate into consistent investment acumen.

The Track Record Reality: Both of these Congress ETF funds are extremely young. Three years of performance data barely qualifies as a meaningful track record in investment terms.

The Concentration Risk: The Democratic Congress ETF’s heavy reliance on a handful of mega-cap tech stocks creates substantial volatility. If those positions stumble, the fund stumbles harder.

The High Turnover Cost: The 62% annual turnover in the Democratic fund means constant rebalancing, which can trigger capital gains and drag performance through trading costs, even within the fund structure itself.

A More Conservative Alternative for Most Investors

For investors seeking steady, long-term growth without betting on whether Congress members have investment talent, traditional approaches often make more sense. A time-tested index fund like the Vanguard S&P 500 ETF has delivered competitive returns across multiple market cycles. It’s also far less expensive to own (with lower expense ratios and virtually no turnover), and it has decades of performance data backing its approach.

If you’re genuinely interested in watching what lawmakers are trading, these Congress ETF products offer a convenient way to do so. But treating them as your primary investment vehicle requires confidence that political connections translate to investment skill—a bet that history suggests shouldn’t be assumed.