This is an actively managed ETF that selects its holdings based on the publicly disclosed stock trades of sitting Democratic members of the US Congress and their families. It uses the disclosures filed under the congressional trading disclosure law as the core input of its strategy.

It suits investors who are drawn to the unusual theme of disclosed trading by members of Congress and are willing to accept active management and a somewhat higher fee burden.

It is an ETF run with an active (aggressive management) approach by Subversive Capital.

The fund analyzes the stock trades that sitting Democratic members of Congress and their families disclose under the congressional trading disclosure law, and reflects those stocks in its portfolio. It does not follow a separate index and is managed actively, with its holdings adjusted whenever the disclosure data is updated.

• Thematic active management that uses congressional trading disclosures
• A stock selection method that differs from passive index-tracking ETFs

Assets under management (AUM) stand at $276.7M, and the total expense ratio is 0.72% per year.

Because disclosure data carries a certain reporting lag, it is important to understand that the structure makes it difficult for information to be reflected in real time.

Given its large-cap-heavy composition, the fund tends to move somewhat in line with the US large-cap market, and its active selection method can produce volatility at different points in time. Specific returns vary depending on the period.

As a unique thematic ETF, it belongs to a category with smaller asset sizes than typical core ETFs, and its fund flows tend to be relatively volatile depending on interest in the theme and the market environment.

The differentiated theme of congressional disclosed trades is its strength, but disclosure lag, a somewhat high expense ratio and stock concentration can work as drawbacks.

The five funds shown in the table, ITOT, SCHB, VXF, OEF and IWV, are all low-fee, broad US market core ETFs. They differ clearly from the thematic active NANC in management style and fee structure, so they serve less as direct substitutes and more as a control group from a cost and diversification perspective. If you want simple, broad core exposure rather than a thematic active fund, you can also consider ETFs such as VOO and VTI, which invest in the same US large-cap market at low cost.

Here are the points to review before investing in NANC. It is a unique congressional trading thematic ETF, but it is best to thoroughly check its structural characteristics in advance, such as the disclosure reporting lag, the somewhat high expense ratio and non-diversified stock concentration.

The reporting lag in disclosures can limit any informational edge, and concentration risk from the somewhat high expense ratio and non-diversified structure is a major driver of short-term volatility. As a thematic ETF, its volatility can increase depending on market attention.

It can be an option worth considering for investors who are drawn to the differentiated theme of congressional trading disclosures. However, given the costs and concentration risk, it is more suitable as a satellite position than as a core holding.