Look to These Sector ETFs in Case of an Election Day Surprise

Heading toward election day, polling surveys and many market watchers anticipate Democrat Hillary Clinton to win the presidential race. However, Republican Donald Trump is quietly gaining backers, and investors may want to consider health care exchange traded funds in case of an upset.

The health care sector is the worst performing area of the S&P 500, with the S&P 500 Health Care Index down 8.4%, as traders sold off the area on political risk.

The health care sector, notably biotechnology and pharmaceutical stocks, has suffered from Clinton’s remarks on rising costs for specialized drugs. Many traders believe a Clinton administration would put biotech and pharma drug costs under the microscope when she takes office.

Consequently, a Trump upset could pave the way for a rebound after the political risk-induced selling this year.

“I’m taking a counter trade on health care,” Kevin O’Leary, O’Shares Investments chairman, said on CNBC.