Republicans and Democrats may bicker and nitpick over many policies, but the two parties can find common ground on some investments. Retail investors can also track the thematic plays through diversified sector-related exchange traded funds.
Currently, members of the 113th Congress hold heavy stakes in technology, financial and telecom stocks, reports Karma Allen for CNBC.
Specifically, 57 members hold Microsoft (NasdaqGS: MSFT), 48 hold Apple (NasdaqGS: AAPL), 48 hold IBM (NYSE: IBM), 44 hold Cisco Systems (NasdaqGS: CSCO), 50 hold Wells Fargo (NYSE: WFC), 46 hold JPMorgan Chase (NYSE: JPM), 47 hold AT&T (NYSE: T) and 47 hold Verizon Communications (NYSE: VZ).
Along with these stock exposures, ETFs provide investors the opportunity to access a diversified portfolio of equities taken from the sectors.
For instance, the Technology Select Sector SPDR (NYSEArca: XLK), the largest tech-related ETF, has a 16.8% position in AAPL, 10.1% in MSFT, 5.3% in VZ, 4.6% in T and 3.8% in IBM. Alternatively, the iShares U.S. Technology ETF (NYSEArca: IYW) has a heftier 19.5% weight toward AAPL, along with MSFT 11.8%, IBM 4.4%, CSCO 3.8% – the iShares Tech ETF, though, does not include any exposure to the telecom stocks. XLK has a 0.16% expense ratio and IYW has a 0.45% expense ratio. [A Return to Tech ETFs]
The iShares U.S. Financial Services ETF (NYSEArca: IYG) and the Financial Select Sector SPDR (NYSEArca: XLF) both include large positions in JPMorgan and Wells Fargo. IYG has 11.4% WFC and 10.2% JPM while XLF includes 8.5% WFC, and 7.6% JPM. IYG has a 0.45% expense ratio and XLF has a 0.16% expense ratio.