However, Clinton’s proposals explicitly call for no changes under Dodd-Frank for large financial institutions.
In either case, a Republican or Democrat sitting in the White House will be a boon for the small-cap banking industry and sector-related ETFs.
For instance, the First Trust NASDAQ ABA Community Bank Index Fund (NasdaqGM: QABA) tracks a group of community banks, including top components like Signature Bank 3.4%, TFS Financial Corporation 2.8% and East West Bancorp 2.7%. The PowerShares S&P SmallCap Financials Portfolio (NYSEArca: PSCF) targets smaller financial companies from the broader S&P SmallCap 600 Index, including a 40.1% tilt toward small-cap banks. The PowerShares KBW Regional Bank Portfolio (NYSEArca: KBWR) targets regional banks.
SEE MORE: Preparing for Big Changes to a Popular Financial ETF
QABA market-cap weights include small-cap 46.6% and micro-cap 34.8%. PSCF holds small-cap 66.7% and micro-cap 31.9%. KBWR includes small-cap 74.5% and micro-cap 6.0%.
For more information on the banking sector, visit our financial category.