I agree that ETFs are pretty expressive and they can absolutely select into ETFs that directly correlate with their pet policies. But stock movements are often correlated across different sectors, so this would curb the most egregious carve-outs and concentrated benefits that politicians can confer on certain companies. Like an ETF made up of electric cars etc. would still generally correlate with economic growth.
I agree that ETFs are pretty expressive and they can absolutely select into ETFs that directly correlate with their pet policies. But stock movements are often correlated across different sectors, so this would curb the most egregious carve-outs and concentrated benefits that politicians can confer on certain companies. Like an ETF made up of electric cars etc. would still generally correlate with economic growth.