With midterm elections on the horizon, are you feeling prepared? In the upcoming webcast, Axelrod and Rove on What’s at Stake in the Midterms, political strategists David Axelrod and Karl Rove will discuss the current political landscape and the various midterm scenarios. To help you plan for any outcome, Michael Arone, CFA, chief investment strategist at SPDR Business at State Street Global Advisors will offer portfolio positioning ideas.
The greater political focus on the green energy transition to combat the negative effects of climate change could help support clean energy or green investment plays, such as the SPDR Kensho Clean Power ETF (CNRG) and the SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX),
The SPDR S&P Kensho Clean Power ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho Clean Power Index, which tracks a portfolio utilizing artificial intelligence and a quantitative weighting methodology to capture companies whose products and services are driving the innovation behind the clean energy sector, including the areas of solar, wind, geothermal, and hydroelectric power. The ETF may provide an effective way to pursue long-term growth potential by investing in a portfolio of companies involved in the transition to a lower emission-generating power supply.
The SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX) can be a core allocation to the large-cap equities of the S&P 500, except with a much-reduced carbon footprint. SPYX tracks the S&P 500 Fossil Fuel Free Index, a benchmark of companies within the S&P 500 that are “fossil fuel free,” defined as companies that don’t own fossil fuel reserves (thermal coal reserves and coal reserve byproducts, as well as oil or gas reserves).
Despite the growing calls for clean energy, the world’s demand for fossil fuels remains robust and won’t be changing overnight. As the world continues to contend with supply issues, investors can turn to energy sector-related ETFs like the SPDR S&P Oil and Gas Exploration and Production ETF (XOP) and the SPDR Oil & Gas Equipment & Services ETF (XES) to capture the ongoing strength in the crude oil segment.
The SPDR S&P Oil & Gas Exploration & Production ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Oil & Gas Exploration & Production Select Industry Index, which is comprised of the oil and gas exploration and production segment of the S&P TMI, including the sub-industries of integrated oil and gas, oil and gas exploration and production, and oil and gas refining and marketing. The ETF provides investors with strategic or tactical positions at a more targeted level than traditional sector-based investing.
Additionally, the SPDR S&P Oil & Gas Equipment & Services ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Oil & Gas Equipment & Services Select Industry Index, which provides exposure to the oil and gas equipment and services segment of the S&P TMI, including the oil and gas drilling sub-industry and the oil and gas equipment and services sub-industry.
Financial advisors who are interested in learning more about investment ideas for the current market environment can register for the Wednesday, November 2 webcast here.