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New funds to mimic Congress stock trades as lawmakers dither over ban

As members of Congress balk at banning each other from buying and selling individual stocks, two new exchange-traded funds named after House Majority Leader Nancy Pelosi (D-Calif.) and Sen. Ted Cruz (R-Texas) aim to let ordinary investors copy their trades.

The Pelosi-themed ETF would trade under the ticker symbol NANC in honor of the MP whose husband frequently buys and sells shares of the companies his wife regulates.

ETF NANC aims to “achieve long-term capital appreciation” by mimicking the trades of Democrats in Congress, according to a September filing with the SEC.

Meanwhile, the Republican ETF would trade under the symbol KRUZ in honor of Ted Cruz, who traded individual stocks during his tenure – but much less frequently than Pelosi.

Like NANC, KRUZ would seek long-term returns for investors by mimicking Republican trades. New York-based Subversive Capital would advise the two ETFs, which have yet to gain SEC approval.

A fund named after Ted Cruz would track the stock trades of GOP lawmakers.
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Members of Congress are required to disclose their stock trades, though they often do so weeks or months after making them.

Dozens of lawmakers from both parties have made oddly timed deals involving the companies they regulate. Several members of Congress, including Cruz, have also reported trading cryptocurrencies.

Both Pelosi and Cruz have said they support a ban on stock trading by members of Congress – and various proposals for a ban have been circulating since January – but it seems unlikely that a bill will go to the votes at least before the midterm elections.

Last Wednesday, Pelosi said she had been in discussions about a stock trading bill, adding, “We think we have a product that we can deliver this month.”

The next day, however, Democratic Sen. Jeff Merkley of Oregon told Insider that a vote on a stock trading ban was “not going to happen” until November’s midterm elections.

More than two-thirds of Americans support banning members of Congress from trading stocks, according to a January Data For Progress poll.

New York Post

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