Top 10 ETFs Since Trump's Surprise Victory

December 13, 2016

President-elect Trump has promised to be a friend of the energy industry and will likely reduce regulations for the industry, making it easier to drill for oil and gas in the United States. That being said, the biggest catalyst for the sector's outperformance in the past month isn't Trump but the surge in natural gas and oil prices.

As natural gas spiked to two-year highs due to a cold start to winter, oil soared to a 1 1/2-year high of its own on the back of an OPEC-orchestrated production cut. That translates into chunkier profits for energy companies.

Less Onerous Regulations To Aid Banks

Aside from energy ETFs, the other area to see hefty returns since the elections is financials. A total of five financials-related ETFs made the post-election top 10, including the PowerShares KBW Regional Banking Portfolio (KBWR), with its 28.4% gain.

Banks are expected to do well under president Trump thanks to reduced regulations. Banks that aren't seen as "too big to fail," such as regional banks, may be some of the biggest beneficiaries of a less onerous regulatory environment.

The spike in interest rates―the benchmark U.S. 10-year Treasury yield increased from 1.85% before election to 2.5% today―also aids the profitability of banks.

The First Trust Nasdaq ABA Community Bank Index (QABA), with a 28.4% gain; the SPDR S&P Regional Banking ETF (KRE), with a 27.4% return; and the broader SPDR S&P Bank ETF (KBE), with a 26.2% increase, were other banking names to make the top 10 post-election list.

Post-Election Returns (Nov. 8 through Dec. 9)

Ticker Fund % Return
UNG  United States Natural Gas Fund LP 34.38
XES  SPDR S&P Oil & Gas Equipment & Services ETF 33.30
PSCE  PowerShares S&P SmallCap Energy Portfolio 28.41
KBWR PowerShares KBW Regional Banking Portfolio 28.40
QABA  First Trust NASDAQ ABA Community Bank Index Fund 28.17
KRE  SPDR S&P Regional Banking ETF 27.43
PXJ  PowerShares Dynamic Oil & Gas Services Portfolio 26.90
DXJF  WisdomTree Japan Hedged Financials Fund 26.88
KBE  SPDR S&P Bank ETF 26.24
RZV  Guggenheim S&P Smallcap 600 Pure Value ETF 26.19


Contact Sumit Roy at [email protected]


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