: New ETFs with tickers NANC, KRUZ aim to track lawmakers’ stock buys, as ban on congressional trading looks unlikely before midterm elections

by | Sep 16, 2022 | Stock Market

Investors soon could have a way to bet on the stock-picking skills of U.S. lawmakers, as a regulatory filing on Thursday has outlined a plan for two new ETFs that would track congressional buys and sells. The ETFs could have to shut down if a bipartisan push to ban congressional trading of individual stocks is successful.

But such a ban doesn’t look imminent, as one advocate in the Senate, Democratic Sen. Jeff Merkley of Oregon, told Insider on Thursday that it’s “not going to happen” before November’s midterm elections. The House still could act on the issue, with Speaker Nancy Pelosi saying on Wednesday that a bill could be brought to her chamber’s floor this month. However, any legislation would need the Senate’s OK before President Joe Biden could sign it into law. One of the new ETFs would have the ticker NANC and would seek to achieve long-term capital appreciation by investing primarily in stocks bought by sitting Democratic members of Congress or their spouses, according to the filing with the Securities and Exchange Commission, which Bloomberg reported on late Thursday. That ticker is a reference to Pelosi, according to one outfit involved in the new ETFs, Unusual Whales. The California Democrat ranked as the eighth-biggest trader last year among Congress’s more than 500 members, with an estimated $12 million in buys and no sells, MarketWatch reported in January. The other ETF would have the ticker KRUZ and would track the equities held by Republican lawmakers or their spouses, the filing said. That ticker is a reference to GOP Sen. Ted Cruz of Texas, according to Unusual Whales. Cruz appears to have made only two trades in the past three years, according to Capitol Trades data, and he reportedly has considered introducing his own bill that would ban congressional buy …

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