Some strategists also argue that the financial sector may be a good area to look at this time around, given the potential for growth in a rising rate environment, along with potential tax and regulatory changes under the Donald Trump administration.
Deregulation could also help the financial sector improve their margins. President Donald Trump’s administration has shown its eagerness in cutting back the red tape and remove some of the post-financial crisis regulations that has stifled the industry.
RWW features exposure to plenty of traditional and investment banks, but the ETF’s largest holding is a 15.5% allocation to Warren Buffett’s Berkshire Hathaway (NYSE:BRK-B). That position broadens RWW’s scope across the financial services sector, the second-largest sector weight in the S&P 500.
RWW holds 68 stocks.
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