The mastermind behind esoteric funds like those that are now closed Inverse Jim Cramer ETF, Tuttle Capital Short Innovation ETF(an ETF designed to provide inverse returns to Cathie Wood's ARK Innovation ETF) and has leveraged single-stock ETFs for the likes and dislikes of Nvidia, Tesla and Alphabet has prepared a new bet: an ETF built around stocks that members of the US Congress and/or their spouses have reported investing in through filings of public disclosure.
Tuttle Capital Management, led by CEO and Chief Investment Officer Matthew Tuttle, disclosed Tuttle Capital Congress ETF Trading IN an SEC filing earlier this week. The purpose of the fund is to allow investors to mirror the collective investments of members of Congress and their families.
According to the filing, Tuttle will construct and adjust the portfolio for the actively managed fund based on monitoring the Periodic Transaction Reports that US senators and members of the House of Representatives are required to report pursuant to the STOCK Act.
“PTRs must be paid within 30 days of the time a congressman or their spouse becomes aware of a transaction, but no later than 45 days from the date of the transaction,” according to the filing.
Tuttle will use this information “to determine which equity securities of publicly traded companies and how much of each equity to select for the Fund. The process of selecting advisers to US congressmen involves numerous factors , including, but not limited to, their historical return on investment performance, the committees they serve on within Congress, and their seniority.Investors should note that the selection criteria may evolve over time for t adapted to changes in legislative dynamics and market conditions.
The fund will adjust its portfolio with the submission of new PTRs.
To create the initial portfolio, Tuttle “will take and use information extracted by others from PTRs submitted by US congressmen for the past three years. Purchases made during that time will be counted against any sales of the same security to create an initial portfolio of equity securities.
Tuttle anticipates that the portfolio will include about 50 securities, but the size and number of positions will vary based on Congressional trading activity.
Tuttle declined to comment beyond the information in the SEC filing.
The ETF will not be the first based on the trading activity of Congress, although it will be the first to build a portfolio on Congress as a whole. of Unusual Whales Democratic Subversive Trading ETF (NANC) invests in equity securities bought or sold by Democratic members of Congress and their spouses while Republican Subversive Whale Trading ETF (KRUZ) tracks Republican members and their wives.