US Congress members like Nancy Pelosi have long remained in the spotlight for their inordinate ability to generate alpha - a measure of a fund manager's ability to exceed the market's rate of return. Now, in what might be the most significant effort to date to capture this niche alpha, mom-and-pop investors will soon be able to replicate the trades of US Congress members via the Tuttle Capital Congressional Trading ETF (NPEL).
New ETF filed
Tuttle Capital Congressional Trading ETF$NPEL | 0.75% fees
Effective date: August 26, 2024
Invests in universe of stocks held by Congress members as reported as per the Stop Trading on Congressional Knowledge Act (“STOCK Act”). Stocks selected based on Congress… pic.twitter.com/YRk2eLAkEJ
— ETF Hearsay by Henry Jim (@ETFhearsay) June 11, 2024
To wit, Tuttle Capital has just applied to the SEC to launch the Tuttle Capital Congressional Trading ETF, which will aim to primarily invest "in equity securities of companies that sitting members of United States Congress and/or their spouses also have reported to have invested in through public disclosure filings made by such Congresspersons pursuant to the Stop Trading on Congressional Knowledge Act (“STOCK Act”)."
The Tuttle Capital Congressional Trading ETF will take into account each Congress member's seniority, involvement in Congressional committees, and alpha-generating track record to establish an initial portfolio. The filing notes:
"After establishing an initial portfolio, the Fund will typically buy or sell a security when a position is reported as being bought or sold by U.S. Congresspeople. The Fund will base its purchases and sales of equity securities of publicly traded companies on trades reported in the PTRs by U.S. Congresspeople while in office."
Of course, investors should note that, given the inherent delays between when US Congress members enter into a position and when those trades are reported, the ETF is quite likely to underperform the actual trading gains of US Congressional members. What's more, the Tuttle Capital Congressional Trading ETF will also charge investors an annual management fee of 0.75 percent.
For the benefit of those who might not be aware, Tuttle Capital had launched two dedicated ETFs not too long ago to track the performance of the CNBC anchor Jim Cramer, who is often touted as the market's ultimate contrarian indicator. However, both of those ETFs underperformed virtual Cramer-tracking indexes, including IndexOne's i1 Inverse Cramer Index, with the ETFs' high expense ratio playing a critical role in this underwhelming performance. Eventually, Tuttle Capital simply shuttered its Cramer-tracking ETFs.
Do you think Tuttle Capital's latest ETF will be able to thrive in today's competitive market environment? Let us know your thoughts in the comments section below.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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