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ETFs to Gain/Lose on Trump's Impeachment Talks

If Trump's impeachment talks go on, these ETF areas may gain or lose. Read More...

A sudden effort has been noticed by Democrats in favor of impeachment of the U.S. President Donald Trump. Speaker Nancy Pelosi recently said that the U.S. House of Representatives will launch a formal impeachment inquiry into Trump.

The announcement followed reports that Trump may have used his powers wrongly and “sought help from a foreign government to undermine former Vice President Joe Biden, the current Democratic frontrunner, and help his own reelection.” With this, Donald Trump has become the “fourth U.S. president to face impeachment”.

Whatever be the case, the below-mentioned ETFs can top or flop if Trump gets impeached.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Likely Winners ” data-reactid=”21″>Likely Winners

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="China” data-reactid=”22″>China

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Trump’s impeachment hints at the end of the trade war with China. It may resolve the ongoing trade tensions. Investors should note that a recent speech by Trump in the United Nations General Assembly urges nations to opt for nationalism and reject globalism. Trump also issued a message to China that he will not conform to&nbsp;any “bad deal”&nbsp;pertaining to trade negotiations. So, China ETFs like&nbsp;iShares China Large-Cap ETF&nbsp;FXI may be in a good spot at the moment.” data-reactid=”23″>Trump’s impeachment hints at the end of the trade war with China. It may resolve the ongoing trade tensions. Investors should note that a recent speech by Trump in the United Nations General Assembly urges nations to opt for nationalism and reject globalism. Trump also issued a message to China that he will not conform to any “bad deal” pertaining to trade negotiations. So, China ETFs like iShares China Large-Cap ETF FXI may be in a good spot at the moment.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Low-Volatility ETFs” data-reactid=”24″>Low-Volatility ETFs

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Low-volatility ETFs like&nbsp;Franklin Liberty U.S. Low Volatility ETF FLLV, SPDR SSGA US Large Cap Low Volatility Index ETF LGLV and Invesco S&amp;P 500 Low Volatility ETF SPLV should also prosper as Trump’s impeachment talks may keep the broader market edgy.” data-reactid=”25″>Low-volatility ETFs like Franklin Liberty U.S. Low Volatility ETF FLLV, SPDR SSGA US Large Cap Low Volatility Index ETF LGLV and Invesco S&P 500 Low Volatility ETF SPLV should also prosper as Trump’s impeachment talks may keep the broader market edgy.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Semiconductor” data-reactid=”26″>Semiconductor

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Semiconductor stocks are highly sensible to trade tensions. Per Morgan Stanley equity strategists, “semiconductor and semiconductor equipment companies have the highest revenue exposure to China at&nbsp;52%” and are thus exposed to maximum risks on rising trade tensions. Chipmaker&nbsp;Qualcomm&nbsp;(QCOM) has 65% revenue exposure to China and&nbsp;Nvidia’s&nbsp;NVDA&nbsp;sales exposure to China is&nbsp;56%, per Goldman Sachs. So, VanEck Vectors Semiconductor ETF SMH may see gains (read: 6 Sector ETFs in Tight Spot on Renewed Trade Tensions).” data-reactid=”27″>Semiconductor stocks are highly sensible to trade tensions. Per Morgan Stanley equity strategists, “semiconductor and semiconductor equipment companies have the highest revenue exposure to China at 52%” and are thus exposed to maximum risks on rising trade tensions. Chipmaker Qualcomm (QCOM) has 65% revenue exposure to China and Nvidia’s NVDA sales exposure to China is 56%, per Goldman Sachs. So, VanEck Vectors Semiconductor ETF SMH may see gains (read: 6 Sector ETFs in Tight Spot on Renewed Trade Tensions).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Likely Losers” data-reactid=”28″>Likely Losers

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Defense ” data-reactid=”29″>Defense

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Trump is a proponent of boosting defense budget. Though any major fiscal tightening is improbable despite a divided government, defense-oriented stocks may lose if Trump’s impeachment talks continue. So, defense and aerospace ETFs like&nbsp;iShares US Aerospace &amp; Defense&nbsp;ITA&nbsp;may come under pressure.” data-reactid=”30″>Trump is a proponent of boosting defense budget. Though any major fiscal tightening is improbable despite a divided government, defense-oriented stocks may lose if Trump’s impeachment talks continue. So, defense and aerospace ETFs like iShares US Aerospace & Defense ITA may come under pressure.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Infrastructure &amp; Utilities” data-reactid=”31″>Infrastructure & Utilities

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Trump is in favor of beefing up public spending by hundreds of billions of dollars on infrastructure. Thus, utilities equity ETFs like&nbsp;First Trust Utilities AlphaDEX Fund FXU or construction ETFs like Invesco Dynamic Building &amp; Construction Portfolio ETF PKB may feel some threat.” data-reactid=”32″>Trump is in favor of beefing up public spending by hundreds of billions of dollars on infrastructure. Thus, utilities equity ETFs like First Trust Utilities AlphaDEX Fund FXU or construction ETFs like Invesco Dynamic Building & Construction Portfolio ETF PKB may feel some threat.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Want key ETF info delivered straight to your inbox?” data-reactid=”33″>Want key ETF info delivered straight to your inbox?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.&nbsp;Get it free &gt;&gt;” data-reactid=”34″>Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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First Trust Utilities AlphaDEX Fund (FXU): ETF Research Reports
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VanEck Vectors Semiconductor ETF (SMH): ETF Research Reports
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iShares China Large-Cap ETF (FXI): ETF Research Reports
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Invesco S&amp;P 500 Low Volatility ETF (SPLV): ETF Research Reports
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Invesco Dynamic Building &amp; Construction ETF (PKB): ETF Research Reports
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iShares U.S. Aerospace &amp; Defense ETF (ITA): ETF Research Reports
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Franklin Liberty U.S. Low Volatility ETF (FLLV): ETF Research Reports
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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SPDR SSgA US Large Cap Low Volatility Index ETF (LGLV): ETF Research Reports
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To read this article on Zacks.com click here.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report” data-reactid=”35″>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
First Trust Utilities AlphaDEX Fund (FXU): ETF Research Reports
 
VanEck Vectors Semiconductor ETF (SMH): ETF Research Reports
 
iShares China Large-Cap ETF (FXI): ETF Research Reports
 
Invesco S&P 500 Low Volatility ETF (SPLV): ETF Research Reports
 
Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports
 
iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports
 
Franklin Liberty U.S. Low Volatility ETF (FLLV): ETF Research Reports
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
SPDR SSgA US Large Cap Low Volatility Index ETF (LGLV): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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