Tuttle Capital Management is launching an innovative exchange-traded fund (ETF) designed to track and invest in the stock picks of U.S. Congress members and their spouses. This bold strategy leverages the mandatory stock disclosure filings required by the Stop Trading on Congressional Knowledge (STOCK) Act of 2012, aimed at preventing lawmakers from capitalizing on insider information.

The proposed "Tuttle Capital Congressional Trading ETF" will be actively managed, with its portfolio selections based on the public disclosures of Congressional members' stock trades. According to a June 11 regulatory filing, the ETF will focus on lawmakers whose investment returns have historically outperformed, considering factors such as their committee assignments and seniority within Congress. The fund is set to charge a 0.75% management fee.

This move follows the precedent set by Subversive Capital Advisors, which launched the Unusual Whales Democratic ETF (NANC) and the Unusual Whales Republican ETF (KRUZ) in February 2023. These ETFs, which also track Congressional stock trades, have seen notable performance, with NANC up 17% and KRUZ up 8% year-to-date, compared to the S&P 500’s 12.7% return over the same period.

Tuttle Capital has a history of unique ETF offerings. In 2022, it filed for two ETFs based on the investment tips of CNBC Mad Money host Jim Cramer: the “Inverse Cramer ETF,” which bet against his recommendations, and the “Long Cramer ETF,” which followed them. Despite the intriguing premise, the Long Cramer ETF was shuttered after about five months, and the Inverse Cramer ETF lasted around 11 months.

In January, Tuttle Capital filed for six proposed leveraged and inverse Bitcoin ETFs, promising "magnified" returns from a spot Bitcoin ETF. However, none of these ETFs are currently listed among Tuttle Capital’s active strategies on its website.

The firm’s innovative approach to ETF management has also entertained the idea of an ETF tracking the stock picks of Keith Gill, known as “Roaring Kitty,” the famed GameStop trader. Tuttle Capital's CEO and Chief Investment Officer Matthew Tuttle acknowledged the concept as "interesting," following a casual suggestion by Nate Geraci, president of The ETF Store, given Gill's significant media presence and influence.

As Tuttle Capital continues to push the boundaries of ETF strategies, the new Congressional Trading ETF represents another step in exploring unconventional investment opportunities, aiming to capitalize on the disclosed trades of U.S. lawmakers.