What does the new administration mean for Wall Street? Jim Cramer's first reaction to the election is live on TheStreet's Facebook page tomorrow morning at 8am ET. He joins our team of reporters along with experts and analysts tracking the markets with us.
The end is nigh.
After more than a year of divisive rhetoric and escalating social tensions, the choice is finally upon a weary American electorate. After Tuesday's vote, we will know whether the next president will be Democratic candidate Hillary Clinton or Republican candidate Donald Trump.
Investors should contend with empirical reality, not wishful thinking. And regardless of one's political persuasion, the cold hard data point to a resounding Clinton victory.
Here are three exchange-traded funds that should thrive under the policies of a Clinton administration. Through these funds, investors can quickly get ahead of the curve, with less risk than buying individual equities.
The good news is that these funds should enjoy outsize gains, regardless of who wins, because they are plugged into accelerating trends. But they are likely to perform even better under a Clinton administration.
1. Guggenheim Solar (TAN)
Green energy, as exemplified by solar power, would be a top priority for Clinton. The industry also boasts long-term tailwinds that are independent of the political party in charge.
The solar industry hasn't seen its fortunes diminish in the face of cheaper fossil fuels because solar moves along its own supply-and-demand dynamics. The price of oil no longer matters to solar companies because their customers are increasingly dependent on inexpensive, reliable power from the sun and see no reason to switch.
With net assets of $211.77 million, Guggenheim Solar's top holdings include industry leaders Canadian Solar, First Solar and SolarCity, and the ETF's three-year average return is -18%. But the fund is ready to break out as a new administration pushes for greater subsidies and tax breaks for the solar industry.
The ETF's expense ratio is 0.70%.
2. PowerShares Dynamic Building & Construction (PKB)
To fix America's crumbling infrastructure, Clinton has pledged to spend at least $275 billion, a program that would considerably boost the top holdings of this ETF.
With net assets of $80.01 million, the fund contains such public-sector construction stalwarts as Ingersoll Rand, Martin Marietta Materials and Vulcan Materials. The fund has posted a three-year average return of 5.82%.
Its expense ratio is 0.63%.
3. PureFunds ISE Cyber Security (HACK)
Cybersecurity is a growing concern, as corporate and government entities around the world get hacked with increasing frequency and sophistication.
A major culprit in the global cyberwar is Russia. A Clinton administration would face increased tensions with Russian President Vladimir Putin, who during the election deployed an army of Russia-based hackers and Internet trolls to pose as Trump supporters.
That would make cybersecurity a top priority for a Clinton administration, especially because the Democratic Party has borne the brunt of hack attacks from Putin's operatives.
With net assets of $754.16 million, this ETF's top holdings are the leaders in cybersecurity including Check Point Software Technologies, Cisco Systems, Fortinet, Imperva, Juniper Networks, Palo Alto Networks, Proofpoint, Qualys and Science Applications International.
Cisco Systems is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells CSCO? Learn more now.
Founded in November 2014, the fund is up more than 3% this year, compared with more than 4% for the S&P 500.
Its expense ratio is 0.75%.
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