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The Zacks Analyst Blog Highlights: Restaurant ETF, Vanguard Consumer Staples ETF, SPDR S&P Capital Markets ETF, iShares U.S. Broker-Dealers & Securities Exchanges ETF and PowerShares S&P SmallCap Utilities Portfolio

For Immediate Release

Chicago, IL – June 17, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Restaurant ETF (BITE), Vanguard Consumer Staples ETF (VDC), SPDR S&P Capital Markets ETF (KCE), iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) and PowerShares S&P SmallCap Utilities Portfolio (PSCE) .

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Here are highlights from Thursday’s Analyst Blog:

ETFs to Watch If Hillary Clinton Wins

Hillary Clinton is now the first woman to be nominated by a major party for the U.S. presidency. And now that she has secured the Democratic Party nomination, speculation on the impact of her potential victory is ringing loudly on Wall Street.

As of June 15, Clinton had 43.4% chances of winning while her opponent Donald Trump had 38.3%, according to Huffpost Pollster. And as per PredictWise, the Democratic Party will see a sweeping win to the White House with chances as high as 76%, as of June 15. Needless to say, ears turned to what Clinton is saying in her election campaigns. Investors are examining the investing areas that are to surge if Clinton makes it to the office.

Below we highlight a few of Clinton’s economic view and their impact on the ETF world.

Hike in Minimum Wages

Clinton seeks to hike the minimum wage from $7.25 to at least $12 per hour. This will hit several consumer discretionary ETFs. For example, the restaurant sector is a great example, as it employs a lot of such lower-income workers. On the wage hike issue, the ex-CEO of McDonalds (MCD), Ed Rensi, said that it would be a better option to purchase a robotic arm for $35K than paying an incompetent employee $15 an hour, a level another Democratic candidate Sanders was viewing as must-have.

As a result, Restaurant ETF ((BITE) ) will likely be hurt by the implementation of minimum wage. While consumer staples ETFs like Vanguard Consumer Staples ETF ( VDC) should benefit from this government move, one should note that restaurateurs bearing the brunt of higher minimum wages will eventually pass on this hike to increased menu prices and will turn more tech-savvy. All in all, consumer staples ETFs may not gain as much as they should (read: Consumer Face Off: Wal-Mart versus Amazon ETFs ).

Banks to Face More Stringent Regulations?

Clinton seeks to restrain extreme risk-taking tendencies among big financial institutions and curb risks lying underneath the shadow banking system. Clinton is in favor of levying a tax only on high-frequency traders who terminate a lot of orders.

While these stringencies are targeted at bringing about stability in the banking system, many of the profit generating corners of big banks will be hard bit due to this defensive sentiment. ETFs like SPDR S&P Capital Markets ETF (KCE) and iShares U.S. Broker-Dealers & Securities Exchanges ETF ( IAI) may suffer from such moves.

Spending on Infrastructure

Clinton intends to boost infrastructure spending by a minimum of$275 billion. This should favor utility ETFs like PowerShares S&P SmallCap Utilities Portfolio (PSCE).

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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VIPERS-CONS STA (VDC): ETF Research Reports
SPDR-KBW CAP MK (KCE): ETF Research Reports
ISHARS-US BR-D (IAI): ETF Research Reports
PWRSH-SP SC EGY (PSCE): ETF Research Reports
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