Furthermore, the SPDR S&P Insurance ETF (NYSEArca: KIE), iShares US Insurance ETF (NYSEArca: IAK) and PowerShares KBW Property & Casualty Insurance Portfolio (NasdaqGM: KBWP) could help investors capture broad exposure to insurance providers as interest rates rise.
Trump’s election win has also been a boon for small-cap stocks and related ETFs, like the iShares Russell 2000 ETF (NYSEArca: IWM), iShares Core S&P Small-Cap ETF (NYSEArca: IJR) and Vanguard Small Cap ETF (NYSEArca: VB), as traders bet on Trump’s “America First” mantra that would help domestically-oriented companies led the next leg in economic growth.
Similarly, the First Trust RBA American Industrial Renaissance ETF (NasdaqGM: AIRR) has acted as a play on the president’s vow to rebuild the country’s ailing infrastructure during his election night speech, The small- and mid-cap oriented industrial ETF includes large weights toward the infrastructure segment that could capitalize on increased fiscal spending.
The strengthening U.S. economic outlook and a tightening Federal Reserve monetary policy have been bullish for the U.S. dollar as well. With the Fed expected to hike rates three more times this year, the diverging monetary policy from other global central banks has helped the USD appreciate in the foreign exchange markets. Investors could gain exposure to the stronger greenback through related ETFs, including the The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which is seen as a proxy for the U.S. Dollar Index, and the actively managed WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEArca: USDU), which tracks the dollar against a broader group of developed and emerging market currencies in an attempt to outperform the Bloomberg Dollar Total Return Index.