Investing platform eToro has unveiled three innovative Smart Portfolios designed to help retail investors tap into publicly disclosed government data, including stock trades by U.S. Congress members.

Developed in partnership with investment research platform Quiver Quantitative, these portfolios aim to make complex information from Capitol Hill accessible to everyday investors, offering new strategies based on the financial activities of lawmakers and companies heavily involved in lobbying and government contracts.

In recent years, public disclosures have revealed that U.S. politicians have made significant stock trades around critical events such as the onset of the COVID-19 pandemic, the Russian invasion of Ukraine, and the collapse of Silicon Valley Bank. To replicate the strategies employed by Congress members, the new Congress-Buys portfolio will focus on the top 10 stocks recently purchased by lawmakers, chosen based on the size of the purchases. This portfolio seeks to leverage the insider knowledge that these political figures may have regarding upcoming market-moving events.

The second portfolio, Lobby-Spending, targets companies with increasing lobbying expenditures. This strategy is based on the premise that companies investing more in lobbying efforts are positioning themselves to benefit from favorable policies or government actions. By identifying these companies, eToro aims to give investors a way to potentially capitalize on the outcomes of these lobbying efforts.

The third portfolio, DC-Insider, combines companies that are frequently traded by Congress members, spend significantly on lobbying, and hold substantial government contracts. This comprehensive approach aims to provide investors with a diversified portfolio that reflects the financial interests and activities of those closely connected to U.S. legislative processes.

Gil Shapira, Chief Investment Officer at eToro, emphasized the significance of making this type of information accessible to retail investors. “Federal law requires Congress members to disclose their stock trades, but for the average investor, it’s not easy to gather and analyze this data effectively,” Shapira said. “Our collaboration with Quiver Quantitative allows us to transform these disclosures into actionable investment strategies, helping our users make more informed decisions.”

James Kardatzke, CEO and Co-Founder of Quiver Quantitative, echoed this sentiment, highlighting the value of understanding the relationship between Wall Street and Capitol Hill. “We aim to provide tools that enable retail investors to act on insights derived from government activities. Partnering with eToro allows us to bring these strategies to a broader audience,” Kardatzke noted.

Each portfolio will be rebalanced monthly to reflect the latest available data, ensuring that the strategies remain aligned with current trends. eToro’s Smart Portfolios offer long-term, diversified investment solutions with an initial investment starting at $500. While these portfolios are not available to U.S. users, they provide a unique opportunity for international investors to gain exposure to market trends influenced by U.S. government actions.