Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Obama or Romney? Win With These ETFs

By

A Romney victory may benefit oil and gas stocks stocks, as well as financials, while an Obama victory may help the health care and clean energy sectors thrive.

PrintPRINT
Financials

Romney supports less regulation on the financial sector. In particular, he has pledged repealing the Dodd-Frank Act and replacing it with more streamlined regulation. He believes that the onerous regulations have weakened the economic recovery, as the banks focus on compliance instead of lending.

According to S&P estimates, the eight largest US banks stand to lose between $22 billion and $34 billion in annual revenue as a result of the Dodd-Frank Act. Most of the projected costs would be due to the Volcker Rule. If the Dodd-Frank Act is repealed, big banks will benefit substantially.

Most likely Romney administration will come up with revamped version of the Act, which would accommodate some of the highly profitable but risky activities, by relaxing the rules governing the derivatives market and restrictions on investments in private equity and hedge funds.

Financial Select Sector SPDR (NYSEARCA:XLF)

XLF, which tracks the Financial Select Sector Index, is the most popular ETF in the financial services space, with more than $7.9 billion in assets. Additionally, it is very cost effective with just 18 basis points in expense ratio and very tight bid-ask ratios.

The ETF holds 81 securities but assigns more than 50% of the assets to its top 10 holdings, which include all big names in the financial sector. It pays out a decent yield of 1.67% currently.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE