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Trump May Be Re-Elected: Best ETFs in His Current Term

Sanghamitra Saha

Republicans might win back the White House in 2020 with Donald Trump’s re-election as the President of the United States. At least, more than two-thirds of chief financial officers are of this opinion despite heightened trade tensions.

No doubt, President Donald Trump’s approval rating on the economy has dropped on rise in recessionary concerns. Trump’s approval rating on the economy dropped to 46% in a Quinnipiac University survey released late last month, down 2 percentage points from May. A CNN/SSRS poll released this month found 48% approvals — down from a peak of 56% in April. A separate Washington Post-ABC News poll showed 46% of approvals, a decline from 51% in July, per CNBC.

But majority of U.S. business leaders expects Trump to be re-elected in 2020 as a recession is not in the cards, at least in the near term. A struggling economy reduces the chance of an incumbent President wining election.

Though this group of leaders is not a fan of Trump’s trade policies and his view that more interest rate cuts are needed from the Fed for economic expansion, the cohort sees him winning the next election, per an article published on CNBC.

Against this backdrop, investors might be interested in checking out the ETFs that have gained materially in Trump’s presidency. Below we highlight a few ETFs that have been top performers in the past three years (as of Sep 17, 2019).

ARK Web x.0 ETF ARKW – Up 139.9%

The fund seeks long-term growth of capital. It is an actively-managed ETF that invests primarily at least 80% of its assets in domestic equity securities and U.S. exchange traded foreign equity securities. The fund charges 75 basis points (bps) in fees (read: Bet on NVIDIA's Solid Q2 With These ETFs).

Aberdeen Standard Physical Palladium Shares ETF PALL – Up 134.6%

This ETF is designed to track the price of Palladium Bullion. The rally was mainly backed by growing global demand and stagnating supply. The fund charges 60 bps in fees.

iShares PHLX Semiconductor ETF SOXX – Up 106.7%

The underlying PHLX SOX Semiconductor Sector Index measures the performance of U.S. traded securities of companies engaged in the semiconductor business. The fund charges 46 bps in fees.

SPDR S&P Aerospace & Defense ETF XAR – Up 103.8%

The fund follows the S&P Aerospace & Defense Select Industry Index represents the aerospace & defense sub-industry portion of the S&P Total Stock Market Index. The fund charges 35 bps in fees (read: 5 Market-Beating Sector ETFs of Q2).

Invesco Dynamic Software ETF PSJ – Up 98.6%

The underlying Dynamic Software Intellidex Index comprises stocks of software companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors (read: 5 Hot ETFs Leading the Wall Street Rebound).

Amplify Online Retail ETF IBUY – Up 86.5%

The underlying EQM Online Retail Index utilizes a rules-based methodology to select a globally diverse group of companies with 70% or more of revenues from online and virtual sales. The fund charges 65 bps in fees (read: ETFs & Stocks to Make the Most of Back-to-School Shopping).

Invesco WilderHill Clean Energy ETF PBW – Up 78.8%

The underlying WilderHill Clean Energy Index is composed of stocks of companies that are publicly traded in the United States and engaged in the business of advancement of cleaner energy and conservation. The fund charges 70 bps in fees (read: The Hottest ETFs of 2019).

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Invesco WilderHill Clean Energy ETF (PBW): ETF Research Reports
Aberdeen Standard Physical Palladium Shares ETF (PALL): ETF Research Reports
Amplify Online Retail ETF (IBUY): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
ARK Web x.0 ETF (ARKW): ETF Research Reports
iShares PHLX Semiconductor ETF (SOXX): ETF Research Reports
Invesco Dynamic Software ETF (PSJ): ETF Research Reports
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