Democrats and Republicans actually have their differences, even in the case of investing

The political differences between the 2 major parties in america are clear and stark, and that isn’t any surprise to anyone who has paid even in the slightest degree of attention lately.

But what may surprise some people is how in another way the parties invest and what the highest 10 stocks amongst Democrats and Republicans are.

Because of two relatively recent ETFs provided by asset manager Subversive Capital, we understand how the members of the 2 political parties invest their very own money. Here’s a have a look at the highest 10 stocks held by Democrats, and the highest 10 stocks held by Republicans.

Democrats prefer NVIDIA, big tech stocks

For its two ETFs, launched in 2023, Subversive tapped into a knowledge provider called Unusual Whales, which tracks the trades made by members of Congress, as required by the Stop Trading on Congressional Knowledge, (STOCK) Act.

The ETF that tracks Democrats holdings is the Subversive Unusual Whales Democratic ETF (CBOE:NANC) includes about 750 stocks which might be held by Democratic members of Congress and their families.

The holdings are weighted using a proprietary system that calculates which stocks have probably the most invested in them. Listed here are the highest 10 holdings:

1. NVIDIA (NASDAQ:NVDA) — 13.1%
2. Microsoft (NASDAQ:MSFT) — 9.4%
3. Salesforce (NYSE:CRM) — 4.8%
4. Apple (NASDAQ:AAPL) — 4.7%
5. Amazon (NASDAQ:AMZN) — 4.6%
6. Alphabet (NASDAQ:GOOG) — 4.5%
7. PIMCO Enhanced Short Maturity Energetic ETF (NYSEARCA:MINT) — 3.4%
8. First American Government Obligations Fund (NASDAQ:FGXXX) — 2.7%
9. Crowdstrike Holdings (NASDAQ:CRWD) — 2.3%
10. Netflix (NASDAQ:NFLX) — 2.2%

Among the many more distinguished names, the stocks owned by Rep. Nancy Pelosi (D-CA), who the ticker refers to, are included on this ETF.

In recent weeks, Pelosi and her husband Paul Pelosi, a hedge fund manager, made some major trades, based on Capital Trades. Amongst them, they sold 2,500 shares of Tesla (NASDAQ:TSLA) and a pair of,000 shares of Visa (NYSE:V). The Pelosis added 20 shares of Broadcom (NASDAQ:AVGO), on the pre-stock split price, and 10,000 shares of NVIDIA on the post-stock split price.

Republicans favor JPMorgan Chase, energy stocks

Subversive’s Republican-oriented ETF is known as the Subversive Unusual Whales Republican ETF (CBOE:KRUZ). This ETF has fewer holdings, about 490 stocks, nevertheless it is more diversified, with only 27% of assets in the highest 10 names in comparison with 52% of assets in the highest 10 for the Democratic ETF.

It’s also more conservative, with several value stocks, together with a couple of energy names amongst its top 10 holdings. Listed here are the highest 10 stocks within the portfolio:

1. JPMorgan Chase (NYSE:JPM) — 3.9%
2. NVIDIA (NASDAQ:NVDA) — 2.7%
3. Comfort Systems USA (NYSE:FIX) — 2.6%
4. Arista Network (NYSE:ANET) — 1.9%
5. United Therapeutics (NASDAQ:UTHR) — 1.8%
6. Intel (NASDAQ:INTC) — 1.7%
7. Elevance Health (NYSE:ELV) —1.5%
8. National Fuel Gas (NYSE:NFG) — 1.5%
9. Texas Instruments (NASDAQ:TXN) — 1.4%
10. Shell (NYSE:SHEL) — 1.3%

Among the many newer trades by Republican Congress members, Rep. Marjorie Taylor Greene (R-GA) added positions in ASML Holding (NASDAQ:ASML), Costco (NASDAQ:COST), and CrowdStrike (NASDAQ:CRWD), to call a couple of, based on Capital Trades. Further, Sen. Mitch McConnell (R-KY) recently added shares of Wells Fargo (NYSE:WFC).

Which has outperformed?

Each year-to-date and over the past 12 months, the Democratic ETF has outperformed the Republican ETF.

The Democratic ETF is up 22.2% YTD and 32.1% over the past 12 months, beating the S&P 500 in each cases. It also has more assets under management with about $158 million, so it has been more popular with investors.

The Republican ETF has underperformed the S&P 500, with a YTD return of 11.6% and a one-year return of 20.7%. The S&P 500 is up 18.9% YTD and 26.7% over the past 12 months. The Republican ETF only has about $30.3 million in AUM.

The Democratic ETF has actually gained from its large positions in high-flying tech stocks, like NVIDIA. However it is way pricier, with a P/E ratio of 32 in comparison with 18 for the Republican ETF. It may be vulnerable to more volatility, as greater than 50% of its assets are in the highest 10 holdings.

With just one-year track records, it is difficult to say which is the higher option. However it is obvious over the past 12 months that the Democratic ETF is more geared toward growth while the Republican ETF is more value-oriented.