Consequently, if elected, Trump could be a boon for the aerospace and defense industry, along with related ETFs, like the iShares U.S. Aerospace & Defense ETF (NYSEArca: ITA) and PowerShares Aerospace & Defense Portfolio (NYSEArca: PPA), which include industrial names like Boeing (NYSE: BA), United Technologies (NYSE: UTX), Lockheed Martin (NYSE: LMT) and Raytheon (NYSE: RTN), among others.
Alternatively, if Clinton wins out on election day, we may see continued support for the healthcare sector from the ongoing Affordable Care Act, or so-called Obamacare, and improved relations with trade partners whom have been targeted under Trump’s more protectionist rhetoric.
While Clinton has put a spotlight on high-priced drugs in the biotechnology and pharmaceutical space, she may continue to back Obamacare and support the broader healthcare industry, with more insured Americans using healthcare services. Investors may look to broad healthcare options like Vanguard Health Care ETF (NYSEArca: VHT) and the Health Care Select Sector SPDR (NYSEArca: XLV) for exposure to industry.
Additionally, Mexican assets are seen as an election barometer, weakening when Trump advanced in polls and strengthening when the Republican nominee lost ground. Trump has questioned NAFTA and free trade, vowed to add tariffs on Mexican imports, pledged to deport millions of undocumented immigrants and wanted to build a border wall to keep out Mexican immigrants. If Clinton wins out, investors may ride a potential rally with country-specific ETF options like the iShares MSCI Mexico Capped ETF (NYSEArca: EWW), which holds broad range of companies in Mexico, and SPDR MSCI Mexico Quality Mix ETF (NYSEArca: QMEX), which tracks a more customized basket of Mexico stocks that were selected based on metrics like value, quality and low volatility.