Under the Romney administration, the financial services sector will be able to impose less strict provisions. The iShares S&P Global Financials Sector Index Fund (NYSEArca: IXG) will benefit from less pressure on the industry as a whole. Diversified banks make up 43% of the ETF’s assets, including Wells Fargo, while other diversified financial services stocks such as Citigroup add another 8%. [How Financial ETFs May Benefit as Banks Get Safer ]
The iShares Dow Jones Transportation Average Index (NYSEArca: IYT) will benefit under the Romney Administration as well. IYT has 34% of its assets in railroads, such as Union Pacific, and 20% in Trucking, such as Landstar Systems. [ETFs to Track Market Sentiment]
“The current administration has worked against the coal industry and coal-fired plants, by adding regulations. Coal accounts for about 25% of total railroad revenues, and our analysts think that the rails would benefit from further encouragement of drilling in shale regions since they transport much of the needed pipe and sand along with outbound oil products,” S&P Capital said.
Tisha Guerrero contributed to this article.