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ETFs for Coming Budget Battle

NEW YORK ( TheStreet) - The conversation among politicians and Washington commentators has heavily focused on President Obama's budget plans. Throughout the coming weeks, debate will continue to rage as he and his cabinet attempt to find middle ground between party lines.

Investors have a number of ETF options at their disposal which can help them gain access to the industries that will likely be the focus of lawmakers.


Infrastructure has become a major focus of the Obama administration as the government takes steps to revitalize and upgrade the nation's existing roads, bridges and railways. Reflecting this, Obama's 2012 budget proposal includes a six-year plan aimed at strengthening the transportation industry.

Investors seeking a way to access this region of the market should turn to the iShares Dow Jones Transportation Average Index Fund (IYT).

Designed to capture a broad collection of companies involved in moving people and goods around the world, IYT exposes investors to a basket of railroads, airlines, shippers, trucking firms, and members of the delivery industry. Top holdings include FedEx (FDX), United Parcel Service (UPS), Union Pacific (UNP) and C.H. Robinson World Wide (CHRW).


Technology has become another big topic of interest for Obama's administration. During his presidential address at the start of the year, he urged lawmakers to come together to promote increased investment in this industry to help the U.S. become more competitive within our increasingly interconnected global economy.

In another recent speech, Obama honed in on technology once again, laying out an $18 billion plan with the goal of providing nearly every American with high-speed Internet access.

Last week, the president sat down with leaders from a number of top tech firms including Google (GOOG), Apple (AAPL) and Oracle (ORCL). A White House spokesperson said the group's discussion focused on innovation and private sector job growth.

As the lawmakers make an effort to strengthen U.S. presence as a global technology leader, investors can turn to funds such as the First Trust Dow Jones Internet Index Fund (FDN) and the iShares S&P North American Technology-Multimedia Networking Index Fund (IGN) to gain a front row seat. Smartphones, tablets, and personal computers are becoming more advanced and engrained into our day to day lives and firms such as Google and Qualcomm (QCOM) stand to benefit.

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FDN $68.30 0.00%
IGN $38.91 0.00%
IYT $157.61 0.00%
NLR $50.45 0.00%
PBW $5.86 0.00%


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