Does It Pay to Copy Congress' Stock Trades?

Zach Evens, a passive strategies analyst for Morningstar Research Services, discusses two ETFs that use data from Unusual Whales to track congressional stock trades. He explains why investors might be drawn to these funds and the potential risks that they face. Key Takeaways: Why Investors May Want to Follow Congressional Stock Trades Are Members of Congress Good at Picking Stocks? The Firms Behind the ETFs: Subversive Capital and Unusual Whales Limitations of the Data on Congressional Stock Trades How Democrats and Republicans Invest Differently Both the Democratic and Republican ETFs Favor Tech Stocks How Outsize Tech Exposure Has Affected the Performance of These ETFs Why Investors Face Concentration Risk With Thematic Funds Like Congressional ETFs Why the ‘Black Box’ of Congress’ Investing Strategy Is Risky for Investors Key Takeaways on Investing in Congressional ETFs   What's next is now at the Morningstar Investment Conference. Register now to get to the source for cutting-edge research, expert insights, and thorough analysis. Click here to register   Read about topics from this episode.   The 2 ETFs That Track Congressional Stock Trades Morningstar’s Guide to ETF Investing An Investor’s Guide to the Next Trump Administration The Big Shortfall: Understanding the gap in thematic funds The Best Tech Stocks to Buy Are Stock Investors in for Another Tech Wreck? What Trump’s Trade Wars Could Mean for the Global Economy and Markets 6 ETF Investing Predictions for 2025   What to watch from Morningstar. Can Healthcare Stocks Keep Outperforming the Market? Worried About a Market Sell-Off? These 10 Funds Reduce Portfolio Risk  Gray Divorce: How to Avoid Triggering a Costly Tax Bill Why the Bond Market Looks Brighter Than It Did in 2022   Read what our team is writing: Zachary Evens Margaret Giles   Follow us on social media. Facebook: https://www.facebook.com/MorningstarInc/ X: https://x.com/MorningstarInc Instagram: https://www.instagram.com/morningstar...  LinkedIn: https://www.linkedin.com/company/5161/