We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs to Play Biden's 2024 Reelection Campaign Launch
Read MoreHide Full Article
President Joe Biden recently announced his reelection bid, signaling his intention to extend his streak as the oldest person to sit in the Oval Office if he wins a second term. Despite concerns about his age among Democrats, no serious opposition to Biden has emerged, even as the Republican field grows larger.
With early polling showing a close hypothetical general election race, investors must prepare to play the political landscape that will emerge in the lead-up to the 2024 presidential election. Biden had a 41% job approval rating in the April NBC News poll. The figure was below his 57% high when he took office, but above his low of 39% in May 2022, as quoted on CNBC.
Analyze the Political Landscape
The political landscape is an essential factor to consider when investing during an election campaign. Biden's first term saw several significant accomplishments, including pushing through the pandemic relief plan, a bipartisan infrastructure law, and the Inflation Reduction Act.
Investors need to analyze the potential impact of these accomplishments on the economy and the stock market. Additionally, investors must consider the opposition candidates' platforms, including Trump, DeSantis, Haley and Scott.
ETF Strategies in Focus
Against this backdrop, below, we highlight some ETF investment strategies that may be considered if Biden wins again.
Focus on Infrastructure-Related Stocks
During his first term, Biden was able to push through the $1 trillion bipartisan infrastructure law, which could create significant investment opportunities in infrastructure-related stocks. Investors can consider stocks of companies that provide products and services for the construction of roads, bridges and other infrastructure projects. Companies involved in clean energy, electric vehicles, and green infrastructure could also benefit from Biden's push for a greener economy.
iShares U.S. Infrastructure ETF (IFRA - Free Report) , Invesco Dynamic Building & Construction ETF (PKB - Free Report) and First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID - Free Report) should thus be in focus.
Invest in Healthcare Stocks
Biden has emphasized the need for improving healthcare access and affordability. Last year, Biden issued a biotechnology executive order to promote research and development. He may increase funding for medical research and development, if given a chance to serve a second term.
Investors can look into healthcare stocks that stand to benefit from Biden's policies, such as pharmaceutical companies that produce vaccines, medical equipment makers, and biotech firms involved in research and development. ETFs like Virtus LifeSci Biotech Clinical Trials ETF (BBC - Free Report) and ALPS Medical Breakthroughs ETF (SBIO - Free Report) should thus be under focus.
Bet on Renewable Energy Stocks
Biden had made it clear in the first term itself that he plans to prioritize the fight against climate change. He has set ambitious goals for the country to achieve net-zero emissions by 2050. Investors can bet on renewable energy stocks, such as those involved in solar, wind, and hydroelectric power, to benefit from the shift toward clean energy.
Guinness Atkinson Funds SmartETFs Sustainable Energy II Fund (SOLR - Free Report) , Invesco Solar ETF (TAN - Free Report) and Goldman Sachs Bloomberg Clean Energy Equity ETF (GCLN - Free Report) are some of the ETFs likely to win.
Cannabis Stocks to Remain on a High?
Cannabis stocks jumped on Apr 27 due to the reintroduction of the Secure and Fair Enforcement (SAFE) Banking Act. President Biden has demonstrated his commitment to marijuana reform by advocating that no one should face incarceration for using or possessing the substance. In October, his administration issued a pardon for all prior federal offenses related to simple cannabis possession and encouraged state governors to take similar action for state offenses.
Additionally, in December, President Biden signed the Medical Marijuana and Cannabidiol Research Expansion Act to promote marijuana research, including potential health benefits, and create a pathway for the FDA to approve commercial drug production based on cannabis. AdvisorShares Pure US Cannabis ETF (MSOS - Free Report) and ETFMG Alternative Harvest ETF (MJ - Free Report) added about 7.3% and 6.1%, respectively, on Apr 27.
Consider Defense and Aerospace Stocks
Biden has also pledged to continue investing in national defense and technology. Investors can consider investing in defense and aerospace stocks that stand to benefit from the government's focus on improving the country's national security and technological capabilities. This puts Aerospace & Defense ETFs like iShares U.S. Aerospace & Defense ETF (ITA - Free Report) and Invesco Aerospace & Defense ETF (PPA - Free Report) .
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs to Play Biden's 2024 Reelection Campaign Launch
President Joe Biden recently announced his reelection bid, signaling his intention to extend his streak as the oldest person to sit in the Oval Office if he wins a second term. Despite concerns about his age among Democrats, no serious opposition to Biden has emerged, even as the Republican field grows larger.
With early polling showing a close hypothetical general election race, investors must prepare to play the political landscape that will emerge in the lead-up to the 2024 presidential election. Biden had a 41% job approval rating in the April NBC News poll. The figure was below his 57% high when he took office, but above his low of 39% in May 2022, as quoted on CNBC.
Analyze the Political Landscape
The political landscape is an essential factor to consider when investing during an election campaign. Biden's first term saw several significant accomplishments, including pushing through the pandemic relief plan, a bipartisan infrastructure law, and the Inflation Reduction Act.
Investors need to analyze the potential impact of these accomplishments on the economy and the stock market. Additionally, investors must consider the opposition candidates' platforms, including Trump, DeSantis, Haley and Scott.
ETF Strategies in Focus
Against this backdrop, below, we highlight some ETF investment strategies that may be considered if Biden wins again.
Focus on Infrastructure-Related Stocks
During his first term, Biden was able to push through the $1 trillion bipartisan infrastructure law, which could create significant investment opportunities in infrastructure-related stocks. Investors can consider stocks of companies that provide products and services for the construction of roads, bridges and other infrastructure projects. Companies involved in clean energy, electric vehicles, and green infrastructure could also benefit from Biden's push for a greener economy.
iShares U.S. Infrastructure ETF (IFRA - Free Report) , Invesco Dynamic Building & Construction ETF (PKB - Free Report) and First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID - Free Report) should thus be in focus.
Invest in Healthcare Stocks
Biden has emphasized the need for improving healthcare access and affordability. Last year, Biden issued a biotechnology executive order to promote research and development. He may increase funding for medical research and development, if given a chance to serve a second term.
Investors can look into healthcare stocks that stand to benefit from Biden's policies, such as pharmaceutical companies that produce vaccines, medical equipment makers, and biotech firms involved in research and development. ETFs like Virtus LifeSci Biotech Clinical Trials ETF (BBC - Free Report) and ALPS Medical Breakthroughs ETF (SBIO - Free Report) should thus be under focus.
Bet on Renewable Energy Stocks
Biden had made it clear in the first term itself that he plans to prioritize the fight against climate change. He has set ambitious goals for the country to achieve net-zero emissions by 2050. Investors can bet on renewable energy stocks, such as those involved in solar, wind, and hydroelectric power, to benefit from the shift toward clean energy.
Guinness Atkinson Funds SmartETFs Sustainable Energy II Fund (SOLR - Free Report) , Invesco Solar ETF (TAN - Free Report) and Goldman Sachs Bloomberg Clean Energy Equity ETF (GCLN - Free Report) are some of the ETFs likely to win.
Cannabis Stocks to Remain on a High?
Cannabis stocks jumped on Apr 27 due to the reintroduction of the Secure and Fair Enforcement (SAFE) Banking Act. President Biden has demonstrated his commitment to marijuana reform by advocating that no one should face incarceration for using or possessing the substance. In October, his administration issued a pardon for all prior federal offenses related to simple cannabis possession and encouraged state governors to take similar action for state offenses.
Additionally, in December, President Biden signed the Medical Marijuana and Cannabidiol Research Expansion Act to promote marijuana research, including potential health benefits, and create a pathway for the FDA to approve commercial drug production based on cannabis. AdvisorShares Pure US Cannabis ETF (MSOS - Free Report) and ETFMG Alternative Harvest ETF (MJ - Free Report) added about 7.3% and 6.1%, respectively, on Apr 27.
Consider Defense and Aerospace Stocks
Biden has also pledged to continue investing in national defense and technology. Investors can consider investing in defense and aerospace stocks that stand to benefit from the government's focus on improving the country's national security and technological capabilities. This puts Aerospace & Defense ETFs like iShares U.S. Aerospace & Defense ETF (ITA - Free Report) and Invesco Aerospace & Defense ETF (PPA - Free Report) .