In 7 Days, an Obama Win Could Send Four ETFs Soaring
These sector ETFs have the potential to rally on the back of an Obama reelection.
ProShares UltraShort Financials (NYSEARCA:SKF): When he was running for president in 2008, then Sen. Obama was the toast of Wall Street. At this point in the election cycle in 2008, major financial services firms had donated $14.5 million to Obama. Increased regulation and a Dodd-Frank Act later and Wall Street firms have given just $5.5 million to the President this year, according to the Center for Responsive Politics.
Mitt Romney has raised more than triple that amount of $18.3 million. Price action in the sector arguably shows the candidate banks prefer. Hint: It is not the incumbent.
PowerShares Build America Bond Portfolio (NYSEARCA:BAB): The PowerShares Build America Bond Portfolio, which has over $1 billion in assets under management, does not get much press as a potential winner following an Obama victory. That is odd considering Obama wants to make the Build America Bond program a permanent fixture. The program terminated two years ago.
Created as part of the American Recovery and Reinvestment Act, Build America Bonds are taxable, but the federal government pays issuers subsidy payments equal to 35% of their interest costs, according to the Bond Buyer.
As the Bond Buyer notes, Republicans view BABs as a relic of of the Obama stimulus program and that could endanger these bonds under a Romney Administration.
Editor's Note: This content was originally published on Benzinga.com by The ETF Professor.
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