Election Strategy: How to Position Your Stock Portfolio

In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors, about the investment implications of the upcoming election.

According to State Street research, the economy and profit cycles matter most to markets, and therefore, the best strategy for investors is to stay invested rather than trying to time the market. However, shifts in policies could lead to specific investment opportunities.

Aerospace and defense is one of the few areas that can benefit from bipartisan support, regardless of who wins in November. Investors can also expect a higher fiscal deficit, providing further tailwinds for gold.

Take a look at the SPDR S&P Aerospace & Defense ETF XAR and the SPDR Gold MiniShares Trust GLDM.

Vice President Harris supports raising taxes for corporations and high earners, and thus sectors like consumer staples could benefit in the case of a Democratic sweep. On the other hand, Trump favors extending tax cuts, which could support high-tax and consumer-oriented sectors.

Under a Democratic administration, we are likely to see a continuation of clean energy spending and tax credits for electric vehicles. A second Trump term would be positive for energy ETFs like the Energy Select Sector SPDR ETF XLE.

Increased regulatory scrutiny and antitrust measures could create a more level playing field for smaller tech companies under a Harris presidency. The SPDR NYSE Technology ETF XNTK and the Direxion NASDAQ-100 Equal Weighted Index Shares QQQE are worth considering.

Banks and digital assets could see relaxed regulatory constraints if Trump returns to the White House. Investors might consider the SPDR S&P® Bank ETF KBE and the iShares Bitcoin Trust IBIT.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email [email protected].

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Energy Select Sector SPDR ETF (XLE): ETF Research Reports