Democratic and Republican lawmakers can’t agree on much. But there is one practice among members that enjoys bipartisan support: individual stock trading. The portfolios of dozens of members of Congress from both major parties outperformed the benchmark S&P 500 in 2024, according to the annual analysis of the politicians’ stock portfolios by Unusual Whales, a financial startup run by an anonymous tracker.
Democratic lawmakers were up an average of around 31% last year while Republican saw a 26% increase, compared to the S&P’s 24.9% rise, according to the report, which analyzed trades disclosed through Congress’s periodic transaction reports, which the politicians must file when they buy or sell stocks, bonds, or other securities worth over $1,000.
The report details more of the methodology, and makes clear the figures should be treated as approximations, as Unusual Whales does not have access to Congress’s private financial records. It includes “only the trackable active stock positions from December 29, 2023 to December 30, 2024.”
“Our goal is to shine a spotlight on the financial gains made from stock trades executed while in office,” the report reads. “By sharing these findings, we hope to draw attention to potential conflicts of interest and the need for greater accountability.”
Public polling shows that Americans are overwhelmingly in favor of banning members of Congress, as well as members of the executive and judicial branches, from making trades while in office. This view stems from a perception that politicians and judges have an advantage in the market, given the non-public information they learn in their duties. The report details potential conflicts, such as Republican Rep. Majorie Taylor Greene’s purchase of thousands of Tesla shares that ballooned in value as CEO Elon Musk became a key advisor to incoming President Donald Trump.
That Congress members disclose their trades at all is the result of the 2012 STOCK Act, which followed reports of lawmakers making out handsomely around the 2008 financial crisis. But given that the fine for failing to file is $200, critics say it’s not much of a deterrent. There have been several efforts over the past few years to ban the practice completely, but those have floundered in the House. Outgoing President Joe Biden recently came out in favor of the ban.
In the report, Unusual Whales makes the distinction between those who typically buy and hold and still see good gains and those who trade often. It notes that while Rep. David Rouzer, R-N.C., saw the best portfolio performance of any member in the analysis last year—he was up an estimated 104.1%—he mainly holds ETFs he bought years ago that have hefty exposure to stock darlings like Nvidia.
Meanwhile, more active traders performing well include Democratic heavyweights Rep. Nancy Pelosi of California and Sen. Ron Wyden of Oregon, and Republican Rep. Dan Crenshaw of Texas. Overall, members did better than the S&P because of their large positions in Big Tech, particularly Democrats, according to the report.
“Let’s not forget that many of these big tech companies also lobby the very same people that hold company shares,” the report reads. “Our politicians may have direct oversight over policy decisions that could financially help or hurt these companies.”
Pelosi, formerly the Speaker of the House, has long come under fire for her trades (and her husband David’s). She receives a special call out in the report, with Unusual Whales dubbing her a “a skilled options trader” with “an almost cult-like following for her financial disclosures.” Indeed, articles and services abound to trade like Pelosi, who was up an estimated 70.9% last year.
Not every member of Congress is an active trader—around 100 members are, according to Unusual Whales, and only half of them beat the S&P.
As more Americans have become aware of the practice over the past few years, plenty have wanted to cash in themselves. There are now multiple ETFs (courtesy of Unusual Whales), websites, and newsletters that track Congressional stock trades broadly.
That said, it’s worth noting that recent academic research, including a 2022 paper from Dartmouth College, often finds “no evidence of superior investment performance” among members of Congress.
“The stock market is already a challenging arena for ordinary investors. When Congress members consistently outperform benchmarks like the S&P 500, it raises serious questions about fairness,” the report reads. “It’s time for lawmakers to focus on serving the public interest, not their portfolios.”
