A second term for Trump could positively impact certain ETFs that are aligned with sectors expected to receive favorable policy treatment, such as:
Energy Sector: Trump has shown a preference for fossil fuel industries over renewable energy in the past. ETFs like the Energy Select Sector SPDR Fund (XLE), which includes major energy players like ExxonMobil and Chevron, might benefit from policies that encourage U.S. oil production and ease environmental regulations.
Financials and Banking: Trump’s inclination towards deregulation could be beneficial for financial institutions, potentially aiding ETFs such as the SPDR S&P Bank ETF (KBE), which concentrates on U.S. banks and could thrive in a favorable regulatory landscape and a steepening yield curve, which enhances bank profitability.
Defense and Infrastructure: Trump’s focus on increasing defense spending and infrastructure projects could make ETFs in these sectors appealing. Funds like the iShares U.S. Aerospace & Defense ETF (ITA) and the Global X U.S. Infrastructure Development ETF (PAVE) offer exposure to areas likely to gain from heightened government contracts and funding.
Cryptocurrency and Blockchain: Trump’s supportive stance on cryptocurrency might create a more favorable regulatory climate, potentially benefiting crypto-focused ETFs like the Valkyrie Bitcoin Miners ETF (WGMI) and iShares Bitcoin Trust (IBIT). These ETFs provide access to Bitcoin mining companies and direct Bitcoin investments, respectively.
Investors should remain aware of the potential for volatility, as these sectors can be quite sensitive to changes in policy and market dynamics. Do consult your own advisors if these are suitable for your portfolio.
| Ticker | Name | 2024 YTD | Weekly return | Monthly return | 2023 Return | 2022 Return | 2021 Return | 2020 Return | Weekly open | Weekly High | Weekly Low | Weekly close | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| XLE | Energy Select Sector SPDR Fund | 14.53% | 6.50% | 1.01% | -0.64% | 64.17% | 53.31% | -32.34% | 88.63 | 94.265 | 88.51 | 93.75 | 72608319 |
| KBE | SPDR S&P Bank ETF | 32.00% | 9.80% | 10.12% | 5.31% | -14.85% | 33.50% | -8.39% | 54.09 | 61.245 | 53.3 | 59.52 | 16758812 |
| ITA | iShares U.S. Aerospace & Defense ETF | 23.80% | 7.80% | 1.94% | 14.34% | 9.97% | 9.39% | -14.25% | 144.83 | 156.69 | 144.401 | 155.82 | 2481456 |
| PAVE | Global X U.S. Infrastructure Development ETF | 31.13% | 9.20% | 7.72% | 31.01% | -7.18% | 36.42% | 19.73% | 41.21 | 45.29 | 41.16 | 45.09 | 6897777 |
| WGMI | Valkyrie Bitcoin Miners ETF | 47.67% | 26.69% | 40.41% | 304.07% | 20.7 | 26.66 | 20.005 | 26.58 | 4158046 | |||
| IBIT | iShares Bitcoin Trust | 83.57% | 10.97% | 21.56% | 39.03 | 44.09 | 38.1701 | 43.69 | 254701418 |
