Key U.S. House Member Bets on Defense and Energy ETFs: Any Conflict of Interest?

On May 12, it was disclosed that Congressman Charles “Chuck” Fleischmann (R–Tennessee) purchased ten exchange-traded funds on April 28, including those tied to the defense and energy sectors. According to his filings, each transaction ranged from $1,001 to $15,000, for a total investment of roughly $10,000 to $150,000 (approximately ₩13 million to ₩200 million). Among the purchases were the Global X Defense Tech ETF (SHLD) and the Energy Select Sector SPDR Fund (XLE).

Fleischmann, who represents Tennessee’s 3rd District, chairs the House Appropriations Subcommittee on Energy and Water Development and sits on the Defense Subcommittee, giving him direct oversight of budgets for the Department of Energy, the Nuclear Regulatory Commission and defense spending. Through various appropriations bills, he has championed nuclear power and U.S. energy leadership, driving increases in related funding. Even though holding these ETFs is legally permitted, a lawmaker with direct influence over defense and energy budgets owning assets tied to those industries can fuel conflict-of-interest concerns.

The Global X Defense Tech ETF (SHLD) diversifies across companies such as Lockheed Martin, RTX and Palantir, betting on growth in next-generation military technologies like drones, cybersecurity and AI-driven weapons systems. Supported by geopolitical tensions and expectations of higher defense spending, SHLD posted low single-digit gains year to date but fell about 7% in April. A member of Congress responsible for reviewing defense budgets and weapons procurement who purchases such an ETF faces regulatory risks and political scrutiny—if confidential briefings or budget-negotiation insights inform his investment decisions, it could trigger STOCK Act violations or insider-trading allegations.

The Energy Select Sector SPDR Fund (XLE) invests broadly across the U.S. energy sector, focusing on major oil and gas companies like ExxonMobil and Chevron. Buoyed by strong oil prices and robust cash flows, XLE has gained roughly 30% year to date, though it slipped about 2% in April amid oil-price volatility and large fund flows, increasing its own volatility. Fleischmann has received significant campaign contributions from the oil, gas, nuclear and defense industries and has previously faced criticism for delayed stock-trade disclosures under the STOCK Act. His recent energy-and-defense ETF purchases are likely to draw accusations that his policy positions and personal investments move in tandem. However, because these trades were reported within the 45-day window required by law and involve relatively modest sums, the ultimate regulatory risk will depend on how far Congress pursues a blanket ban on members’ stock and ETF investments.