This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Two ETFs to Avoid the Health Care Fallout

This means that the president's chances of pushing through another hotly contested topic on the legislative agenda, financial reform, are reduced. The financial sector will benefit from Congress's decision on health care and ETFs like Financials SPDR (XLF) and iShares Dow Jones U.S. Financial Sector Index ETF (IYF), with a large stake in big financial firms such as Goldman Sachs (GS - Get Report), Bank of America (BAC - Get Report), J.P. Morgan (JPM - Get Report) or Citigroup (C - Get Report), could see a boost.

However, this will be a trend that will materialize in the mid- to long-term.

In the short run, the market will interpret the passage of the health care bill as a sign that Obama's political maneuvering powers are in their prime and that he will be able to ram his favored legislation through before mid-term elections. In this case, XLF, and IYF will face downward pressure. The regional bank ETFs will do better because they are not a target of reform.

But as November draws closer, if financial reform is not well on its way to being passed, I expect that the big financials will begin to outperform as the market starts to take into account a Republican victory in the mid-term elections.

-- Written by Don Dion in Williamstown, Mass.
At the time of publication, Dion is long iShares Dow Jones U.S. Pharmaceuticals.

Don Dion is president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
KRE $41.32 -0.41%
IYF $85.86 -0.34%
FBT $97.68 -6.40%
XLF $23.10 -0.37%
BAC $15.68 -0.06%


Chart of I:DJI
DOW 16,770.77 -5.66 -0.03%
S&P 500 1,977.13 -9.92 -0.50%
NASDAQ 4,726.7020 -54.5620 -1.14%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs