Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Vote For Obama Or Romney With These ETFs

Fri, Nov 2, 9:16 AM ET, by Michael Johnston

With the 2012 presidential elections only a few days away, folks in Washington, Wall Street and Main Street are gearing up to see who will occupy the coveted Oval Office come January. As with any election, there are, of course, those who are still raising their metaphorical pitchforks, slinging mud at the two candidates, and preaching from their soap boxes about why their presidential pick is obviously the only reasonable one out there. Regardless of the media hoopla, voters are still faced with the choice; will it be Romney’s “Five Point” plan that will create more jobs and more take-home pay, or will “moving forward,” not backwards, be the answer to our nation’s problems?

For investors, this year’s presidential elections will be an important one, as both candidates present radically different plans that will ultimately affect everyone’s bottom line. But, of course, on Wall Street, there is always a winning play for whichever candidate claims the victory. Below we outline some of each candidate’s key campaign points, as well as which ETFs could profit from either a Romney or Obama win [see also How To Pick The Right ETF Every Time]:

To Tax Or Not To Tax?

Taxes: arguably one of the most important issues every election, and for many, it’s the deciding factor when they cast their vote. Both sides of the camp agree that cutting our nation’s massive, and growing, debt pile is key to getting our economy back on track. But how each candidate would go about tackling this seemingly impossible task differs drastically [see also Third Time's A Charm? Best ETF Plays For QE3].

Obama: President Obama’s main objective is to “Protect the middle-class by making everyone, including millionaires, pay their fair share.” His plan involves raising taxes for the upper echelon of tax payers, implementing tax cuts for small businesses and the middle class, eliminating tax breaks for companies that send jobs and profits overseas and, perhaps most importantly, raising the capital gains tax rate.

Russell Microcap Index Fund (IWC): iShares’ IWC offers investors exposure to the micro-cap sector of the U.S. equity market. With Obama being a champion for small businesses, this ETF may stand to attract more investors’ attentions.

Romney: A self-proclaimed business man, Romney feels that the answer to our nation’s debt problems is to employ a “top down” economics approach when it comes to taxing. The presidential hopeful’s plan is to make permanent, across-the-board, 20% cut in marginal rates, maintain current tax rates on interest, dividends and capital gains, and eliminate taxes for taxpayers with AGI below $200,000 on interest, dividends and capital gains [see also Monthly Dividend ETFdb Portfolio].

SuperDividend ETF (SDIV): This ETF is designed to track the performance of 100 equally weighted companies that rank among the highest dividend-yielding equities in the world. And with a current juicy 7.36% distribution yield, a Romney tax cut would make this option even more appealing.

Obamacare vs. Romney’s “Consumer Choice”

Obama: The now infamous Obamacare plan seeks to increase access and affordability by holding insurance companies more accountable, as well as strengthening and expanding Medicare. In addition, Obama has emphasized the need to expand free preventative services as well as lowering costs on prescription drugs and monthly premiums.

Dow Jones U.S. Pharmaceutical Index Fund (IHE): This popular Pharma ETF, holds a basket of 40 major U.S. pharmaceutical companies, with Pfizer, Johnson & Johnson, and Merk & Co allotted the heaviest weightings. IHE may be a good long-term, buy-and-hold option if you believe that more individuals would be insured under Obamacare, which would therefore increase the consumer base of pharmaceutical companies.

Romney: Romney has made it crystal clear that the first thing he would do if he were to win this election would be to repeal Obamacare. In his healthcare plan, he would implement more state control over Medicaid, promote competition in the private insurance market, and provide “premium support” (better known as “vouchers”) for Americans to choose between traditional Medicare coverage or private insurance.

Dow Jones U.S. Health Care Providers Index (IHF): This ETF portfolio consists of some of the biggest names in the health insurance industry, including UnitedHealth Group (UNH), Cigna (CI), Aetna (AET) and Humana (HUM). Whether or not you agree with Romney that increased private insurance competition would ultimately lower profits, this ETF is likely to see a nice spike at least in the short-term as more Americans would pile into the private insurance pool.

Fueling America: Big Oil or Alternative Energy?

Obama: The President’s campaign is to take an “All of the above approach to energy independence.” This includes doubling fuel efficiency standards, increasing natural gas and oil production at home, as well as expanding the use of solar, wind and “clean coal” energy.

WilderHill Clean Energy Portfolio (PBW): This perhaps is an obvious choice, as PBW is by far the largest and most popular choice for alternative energy investments. While the fund has suffered over the last few years, an Obama re-election could give PBW a much-needed boost.

Romney: In regards to alternative energy, Romney would pull government subsidies and take a free market approach, allowing only the best and brightest green energy companies to come out on top. For America to become an energy superpower, Romney believes the answer lies in private-sector-led development (i.e. Big Oil & Gas).

Alerian MLP Index ETN (AMJ): AMJ is by far the largest and most popular MLP ETP, offering investors exposure to the biggest names in the natural gas and oil pipeline industry. If Romney wins, he has promised to approve the Keystone XL Pipeline, which would likely send AMJ skyward.

Follow me on Twitter @DPylypczak

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.


SDI Glossary: "Dividend" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "iShares" Definition
This Article's Word Cloud:   ETFdb   Index   Jones   Obama   Obamacare   President   Romney   Street   This   Wall   also   answer   approach   businesses   candidate   candidates   capital   choice   companies   election   energy   expanding   free   gains   important   insurance   investors   make   market   more   most   nation   only   plan   popular   presidential   private   raising   still   take   that   their   there   this   well   when   which   will   with   would

| More

FXU Crowded With Sellers
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the First Trust Utilities AlphaDEX Fund ETF (FXU) entered ...

Guggenheim S&P 500 Equal Weight Utilities Getting Very Oversold
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim S&P 500 Equal Weight Utilities ETF (RYU) ...

iShares MSCI Frontier 100 Getting Very Oversold
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Frontier 100 ETF (FM) entered into ...

Shares of VOX Now Oversold
Fri, Aug 26, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Vanguard Telecommunication Services ETF (VOX) entered into oversold ...

Alphabet Takes Over #13 Spot From American Tower
Fri, Aug 26, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

DUST: Large Outflows Detected at ETF
Fri, Aug 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DUST Exchange traded funds (ETFs) trade just like stocks, but ...

EWM Makes Bullish Cross Above Critical Moving Average
Fri, Aug 26, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Malaysia ETF (EWM) crossed above their ...

XLK, ACN, AVGO, EMC: Large Inflows Detected at ETF
Fri, Aug 26, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLK, ACN, AVGO, EMC Exchange traded funds (ETFs) trade just ...

GUESS ? Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of GUESS ?, Inc. (GES) have crossed above the average analyst ...

CLI Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Mack Cali Realty Corp (CLI) have crossed above the average ...

CTL Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of CenturyLink, Inc. (CTL) have crossed above the average analyst 12-month ...

BURL Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Burlington Stores Inc (BURL) have crossed above the average analyst ...

Welltower Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Welltower Inc (HCN) have crossed above the average analyst 12-month ...

HURN Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Huron Consulting Group Inc (HURN) have crossed above the average ...

Craft Brew Alliance Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Craft Brew Alliance Inc (BREW) have crossed above the average ...

Exa Reaches Analyst Target Price
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Exa Corp (EXA) have crossed above the average analyst 12-month ...

KTOS Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of Kratos Defense & Security Solutions, Inc. (KTOS) have crossed above ...

PVTB Crosses Above Average Analyst Target
Fri, Aug 26, 8:14 AM ET, by ETF Channel

In recent trading, shares of PrivateBancorp Inc (PVTB) have crossed above the average analyst 12-month ...

iShares Nasdaq Biotechnology Breaks Below 200-Day Moving Average - Notable for IBB
Thu, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares Nasdaq Biotechnology ETF (IBB) crossed below their ...

IHF Makes Notable Cross Below Critical Moving Average
Thu, Aug 25, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Healthcare Providers ETF (IHF) crossed below ...

Vertex Pharmaceuticals Takes Over #81 Spot From Starbucks
Thu, Aug 25, 1:34 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

PUI, SCG, WEC, SRE: Large Outflows Detected at ETF
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PUI, SCG, WEC, SRE Exchange traded funds (ETFs) trade just ...

iShares MSCI Italy Capped ETF Experiences Big Outflow
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EWI Exchange traded funds (ETFs) trade just like stocks, but ...

IVE, T, PG, CSCO: Large Outflows Detected at ETF
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVE, T, PG, CSCO Exchange traded funds (ETFs) trade just ...

SVXY: ETF Outflow Alert
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SVXY Exchange traded funds (ETFs) trade just like stocks, but ...

EBND: ETF Outflow Alert
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EBND Exchange traded funds (ETFs) trade just like stocks, but ...

VEA: Large Inflows Detected at ETF
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VEA Exchange traded funds (ETFs) trade just like stocks, but ...

NOBL, CTAS, HRL, GWW: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: NOBL, CTAS, HRL, GWW Exchange traded funds (ETFs) trade just ...

TZA: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: TZA Exchange traded funds (ETFs) trade just like stocks, but ...

Vanguard Mid-Cap Value ETF Experiences Big Inflow
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VOE Exchange traded funds (ETFs) trade just like stocks, but ...

UVXY: Large Inflows Detected at ETF
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: UVXY Exchange traded funds (ETFs) trade just like stocks, but ...

XHS, ABC, WOOF, MOH: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XHS, ABC, WOOF, MOH Exchange traded funds (ETFs) trade just ...

SQQQ: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SQQQ Exchange traded funds (ETFs) trade just like stocks, but ...

The DO Paradox: Analysts Bearish But Forecast 12.1% Gains
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

The ESV Paradox: Analysts Bearish But Forecast 14.25% Gains
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

KFRC Crosses Above Average Analyst Target
Thu, Aug 25, 8:14 AM ET, by ETF Channel

In recent trading, shares of Kforce Inc. (KFRC) have crossed above the average analyst 12-month ...

BMA Crosses Above Average Analyst Target
Thu, Aug 25, 8:14 AM ET, by ETF Channel

In recent trading, shares of Banco Macro S.A. (BMA) have crossed above the average analyst ...

Sum Up The Parts: IBB Could Be Worth $366
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

GDX Crowded With Sellers
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Gold Miners ETF (GDX) entered into oversold territory, ...

ProShares Ultra Gold Miners Getting Very Oversold
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Gold Miners ETF (GDXX) entered into ...

iShares MSCI Global Gold Miners Getting Very Oversold
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Global Gold Miners ETF (RING) entered ...

NUGT Crosses Critical Technical Indicator
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Gold Miners Index Bull 3x Shares ETF ...

Notable Two Hundred Day Moving Average Cross - BIB
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Nasdaq Biotechnology ETF (BIB) crossed below ...

Pharmaceutical (PPH) Shares Cross Below 200 DMA
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Pharmaceutical ETF (PPH) crossed below their 200 day ...

See How International Business Machines Ranks Among Analysts' Top Dow 30 Picks
Wed, Aug 24, 11:54 AM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that International Business Machines Corp. ...

MDY, MTD, IDXX, WWAV: Large Outflows Detected at ETF
Wed, Aug 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: MDY, MTD, IDXX, WWAV Exchange traded funds (ETFs) trade just ...

FM Crosses Below Key Moving Average Level
Wed, Aug 24, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Frontier 100 ETF (FM) crossed below ...

PSK, HSEB, PNC.PRP, USB.PRM: Large Outflows Detected at ETF
Wed, Aug 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PSK, HSEB, PNC.PRP, USB.PRM Exchange traded funds (ETFs) trade just ...

RXI, MCD, TWX, TJX: ETF Inflow Alert
Wed, Aug 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: RXI, MCD, TWX, TJX Exchange traded funds (ETFs) trade just ...

AGQ Crowded With Sellers
Wed, Aug 24, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Silver ETF (AGQ) entered into oversold ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Vote For Obama Or Romney With These ETFs | Self Directed Investor | Copyright © 2008 - 2016, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.