Hello! This is MarketWatch reporter Isabel Wang bringing you this week’s ETF Wrap. In this week’s edition, we look at some of the ETF sectors that were in spotlight during former President Donald Trump’s presidency to see what a second term could mean for these funds. Please send tips or feedback to [email protected] or to [email protected]. You can also follow me on X at @Isabelxwang and find Christine at @CIdzelis.
Sign up here for our weekly ETF Wrap. ETF investors are gaming out how another Donald Trump presidency could impact stock-market sectors, as the former president made history this week by registering a convincing win in New Hampshire after securing a blowout in Iowa, bringing him one step closer to a rematch with Democratic President Joe Biden in November. While it might be too early to worry about the outcome of the election, especially with voters unenthusiastic about the prospect of a rematch, some market analysts are laying out potential stock-market winners and losers if a Republican wins the White House, based in part on what happened last time around and on the policy goals Trump has laid out should he secure a second term. The election adds to a laundry list of uncertainties that Wall Street has closely monitored amid the current stock-market rally, including inflation, the Federal Reserve’s interest-rate outlook, geopolitical tensions, and the health of the U.S. economy. Here’s a look at how some of the ETF sectors performed under Trump’s presidency between 2016 and 2020, and what could make 2024 different if he heads to a second win. Energy-related ETFs A first scenario many would anticipate is Trump’s push to roll back Biden’s flagship climate policies such as the Inflation Reduction Act and its $369 billion in tax breaks and subsidies for clean energy. As a result, renewable-energy stocks, represented by the iShares Global Clean Energy ETF
ICLN,
will continue to get hammered after a brutal 2023, said Tim Urbanowicz, head of research and investment strategy at Innovator ETFs. Last year, the renewable-energy sector witnessed one of the toughest years in its short history due to supply-chain issues, rising financing costs and a notable slowdown of secondary market transactions. ICLN fell for three consecutive years between 2021 and 2023, after scoring an over 140% annual return in 2020 on Biden’s election victory, according to FactSet data. Meanwhile, utility companies, which have been betting on renewables for years, have tumbled since 2023 as the interest-rate sensitive sector became less attractive compared with U.S. government debt and money-market funds. The S&P 500 utilities sector
XX:SP500.55
is the worst-performing sector of the large-cap benchmark index
SPX
so far this year, down 4.7% compared with the S&P 500’s 2. …
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Sign up here for our weekly ETF Wrap. ETF investors are gaming out how another Donald Trump presidency could impact stock-market sectors, as the former president made history this week by registering a convincing win in New Hampshire after securing a blowout in Iowa, bringing him one step closer to a rematch with Democratic President Joe Biden in November. While it might be too early to worry about the outcome of the election, especially with voters unenthusiastic about the prospect of a rematch, some market analysts are laying out potential stock-market winners and losers if a Republican wins the White House, based in part on what happened last time around and on the policy goals Trump has laid out should he secure a second term. The election adds to a laundry list of uncertainties that Wall Street has closely monitored amid the current stock-market rally, including inflation, the Federal Reserve’s interest-rate outlook, geopolitical tensions, and the health of the U.S. economy. Here’s a look at how some of the ETF sectors performed under Trump’s presidency between 2016 and 2020, and what could make 2024 different if he heads to a second win. Energy-related ETFs A first scenario many would anticipate is Trump’s push to roll back Biden’s flagship climate policies such as the Inflation Reduction Act and its $369 billion in tax breaks and subsidies for clean energy. As a result, renewable-energy stocks, represented by the iShares Global Clean Energy ETF
ICLN,
will continue to get hammered after a brutal 2023, said Tim Urbanowicz, head of research and investment strategy at Innovator ETFs. Last year, the renewable-energy sector witnessed one of the toughest years in its short history due to supply-chain issues, rising financing costs and a notable slowdown of secondary market transactions. ICLN fell for three consecutive years between 2021 and 2023, after scoring an over 140% annual return in 2020 on Biden’s election victory, according to FactSet data. Meanwhile, utility companies, which have been betting on renewables for years, have tumbled since 2023 as the interest-rate sensitive sector became less attractive compared with U.S. government debt and money-market funds. The S&P 500 utilities sector
XX:SP500.55
is the worst-performing sector of the large-cap benchmark index
SPX
so far this year, down 4.7% compared with the S&P 500’s 2. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]