NANC ETF Investors Have a 45-Day Blind Spot and Rates Are Making It Worse

"NANC is, at its core, a tech fund. Information Technology makes up 39% of the portfolio, with Communication Services adding another 13%. That means the fund's fate is tightly linked to how growth stocks respond to interest rate conditions. And right now, rates are in a state of flux worth watching closely."

"Higher yields compress the valuations of long-duration growth stocks by raising the discount rate applied to future earnings, and NANC's top holdings are exactly those kinds of names. Nvidia, the fund's largest position, has given back some of its extraordinary gains from the past year - a pullback driven in part by scrutiny over AI capital spending and the sensitivity of high-multiple names to rising discount rates."

NANC is an ETF that replicates stock trades disclosed by members of Congress, achieving 30% returns since its February 2023 launch. The fund is heavily concentrated in technology (39%) and communication services (13%), making it sensitive to interest rate movements. In 2026, NANC has declined year-to-date as the 10-year Treasury yield rose to 4.15%, compressing valuations of long-duration growth stocks. Top holdings Nvidia and Microsoft, both high-multiple names vulnerable to rising discount rates, have declined significantly. The fund's performance depends on Federal Reserve policy signals and inflation data that influence Treasury yields.

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