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Christmas ETF Gift Ideas for Investors

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The jingle of Santa’s bell is becoming louder every day and people are busy making Christmas plans. While Christmas decoration is one of the top priorities, people must also be wracking their brains for gift ideas. How about presenting something different this year and buying some great ETFs to help them prosper in the New Year?

Below are a few great ETF gift ideas.

U.S. Tax Reform Fund

Heightened chances of the passing of the $1.5 trillion tax cut program makes this fund a top Christmas gift. This newly launched fund looks to offer capital gains by investing in market segments that “will be impacted by the enactment of changes to the U.S. Tax Code” according to the issuer (read: House Passes Tax Bill: Likely ETF Winners & Losers).

iShares U.S. Real Estate ETF (IYR - Free Report)

With Trump’s tax bill proposing to slash corporate tax of real estate developers by 14%, as well as cutting personal taxes for real estate behemoths, the real estate investors are likely to celebrate in the coming days. This along with still-moderate U.S. Treasury yields make this space a wining bet right now.

ARK Innovation ETF (ARKK - Free Report)

The fund seeks long-term growth of capital. Bioinformatics takes about 9.1% of the fund followed by 3D Printing (8.3%) and Autonomous Vehicles (7.5%). The fund is likely to benefit from a sharp ascent of bitcoin, the optimism in the tech and biotech space and the likely fat tax cuts to be realized by tech companies. Bitcoin Investment Trust takes the top spot of the fund with about 8.98% (read: 5 Tech ETFs That Crushed FANG ETFs in 2017).

iShares US Dividend and Buyback ETF (DIVB - Free Report)

The new fund looks to track the Morningstar US Dividend and Buyback Index. The Trump administration is also proposing a move from the current worldwide tax system to a territorial system, allowing companies to send their offshore profits back to the United States without extra taxes. This will result in extra cashes which may prove beneficial for shareholder value maximization (read: What Makes iShares' Dividend and Buyback ETF Launch Timely?).

SPDR S&P Aerospace & Defense ETF (XAR - Free Report)

The defense ETF investing is also shaping up prior to Christmas. Nuclear threats from North Korea and the resultant fear for war, higher demand from commercial aviation, crisis in the Middle East and Trump’s signing of a $700 billion military budget all push the space higher. Though the $700 billion budget cannot be enacted if lawmakers do not agree to pare down a 2011-law that fixed the 2018 defense spending at $549 billion, the air around defense strongly points at optimism.

Amplify Online Retail ETF (IBUY - Free Report)

We are in the midst of the holiday season that makes up about 20% to 40% of annual sales for many retailers. Already, Thanksgiving, Black Friday and Cyber Monday have seen a splurge in buying. Adobe predicts that “this will be the first-ever holiday season to break $100 billion in online sales.”

According to a survey conducted by Deloitte, about 83% of the respondents are likely to use their smartphones, laptops, desktops and social media to shop this holiday season. This makes IBUY an intriguing pick (read: 8 ETF Picks for December).

PowerShares Dynamic Retail ETF

This is yet another holiday season and shopping pick. Best Buy (5.46%), Kroger Co. (5.39%) and Costco Wholesale (5.27%) are the top three stocks of the 30-stock fund (read: Retail ETF Rise Ahead of a Robust Holiday Season).

iShares PHLX Semiconductor ETF (SOXX - Free Report)              

Semiconductors should be well-positioned this holiday season on bitcoin mining, higher sales of electronics and upbeat sentiments prevailing around the tech space. This is where semiconductor ETFs like SOXX can gain traction (read: Here's Why Semiconductor ETFs Could Continue Their Rally).

Schwab US Broad Market ETF (SCHB - Free Report)

Overall, Santa Rally, Trump bump and still-low interest rates should spell optimism for the entire market and investors may find SCHB a nice Christmas gift.

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