Investing Insights

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 TradesAre Members of Congress Good at Picking Stocks?The Firms Behind the ETFs: Subversive Capital and Unusual WhalesLimitations of the Data on Congressional Stock TradesHow Democrats and Republicans Invest DifferentlyBoth the Democratic and Republican ETFs Favor Tech StocksHow Outsize Tech Exposure Has Affected the Performance of These ETFsWhy Investors Face Concentration Risk With Thematic Funds Like Congressional ETFsWhy the ‘Black Box’ of Congress’ Investing Strategy Is Risky for InvestorsKey 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 thorou