Las Vegas Sands, Wynn Resorts Among Politicians’ Favorite Stocks

Posted on: February 8, 2023, 02:19h. 

Last updated on: February 8, 2023, 03:57h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Politicians from both parties are active participants in financial markets and gaming stocks. Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN), are among their favorite holdings.

politician's stocks
People walk in front of the US Capitol building, above. Some gaming names are among politicians’ favorite stocks. (Image: New York Times)

Two exchange traded funds (ETFs) that debuted Tuesday — the Advisor’s Unusual Whales Subversive Democratic ETF (CBOE: NANC) and the Advisor’s Unusual Whales Subversive Republican ETF (CBOE: KRUZ) — are designed to provide everyday investors with exposure to the stocks most widely held by members of both parties.

The ETFs are actively managed, with portfolios based on the investments reported by members of Congress as required by the Stop Trading on Congressional Knowledge Act, also known as the STOCK Act.

STOCK Act filings are filed with either the Senate Office of Public Records or the Clerk of the House of Representatives and made available online pursuant to the Ethics in Government Act ‘EIGA’, as amended,” according to Subversive Capital, which issues and manages the funds.

KRUZ and NANC were born out of two simple premises. First, members of Congress have access to information the general public does not. Second, politicians use that information to generate market-beating returns in their personal investment portfolios.

Several Gaming Names Favorite Stocks

Due in large part to a stake held for more than a year by Rep. Michael McCaul (R-TX), Las Vegas Sands is the number nine holding in the GOP-tilted KRUZ, commanding a weight of 1.51% in that new ETF.

That fund also holds small positions in Wynn, DraftKings (NASDAQ: DKNG), and Penn Entertainment (NASDAQ: PENN). But that trio of stocks combines for just a third of the KRUZ portfolio.

NANC, likely tickered for Rep. Nancy Pelosi (D-CA), whose husband has allegedly made a fortune trading on information first accessible to members of Congress, is home to several gaming equities as well. That group is comprised of, in order of weight, Wynn, MGM Resorts International (NYSE: MGM), Caesars, Sands, Full House Resorts (NASDAQ: FLL), VICI Properties (NYSE: VICI), and Playtika (NASDAQ: PLTK).

Full House and Wynn appearing in NANC are largely the result of trades placed by Full House CEO Dan Lee, who is the soon-to-be former husband of Rep. Susie Lee (D-NV).

Nevada Delegation Not Big on Gaming Stocks

Considering gaming is the largest private sector employer in Nevada, the state’s congressional delegation isn’t a big backer of the industry at the investment level. Aside from Lee, no members of the Nevada delegation own gaming equities, according to Unusual Whales data.

Some of the biggest casino operators in the state don’t see their shares currently held by any members of Congress. Those include Boyd Gaming (NYSE: BYD) and Red Rock Resorts (NASDAQ: RRR).

As measured by KRUZ and NANC, politicians from both parties largely prefer energy, financial services, health care, and technology equity investments.