ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. The Responsible Investing Channel
  2. This ETF Earns Pre-Election Consideration
The Responsible Investing Channel
Share

This ETF Earns Pre-Election Consideration

Tom LydonOct 24, 2022
2022-10-24

The 2022 midterm elections are less than three weeks away, making this the ideal time for investors to consider positioning for a variety of electoral outcomes. In situations like this, exchange traded funds are potentially more useful and less risky than individual stocks, particularly because various sectors and industries will react differently to election results. That is likely one reason why the SPDR NYSE Technology ETF (XNTK A-) is among the ETFs drawing attention ahead of Election Day.

While the electoral outcomes are yet to be determined, there’s no shortage of opinions on what advisors and investors should do if the current balance of power on Capitol Hill remains in place or if the majority party changes in either or both houses of Congress.

XNTK, which follows the NYSE Technology Index, is joining other technology ETFs to the downside this year — the result of rising interest rates that are making growth stocks less appealing. However, some market observers argue that the ETF could be prime for a post-midterm election rally.

“A Republican-controlled Congress likely will reject any significant corporate or individual tax increases put forth by Congressional Democrats. If that happens, it would mean no tax increase on multi-national income or OECD global tax,” noted Matthew Bartolini, head of SPDR Americas Research.

XNTK holds 35 stocks, featuring a mix of technology and consumer internet names. Additionally, the fund’s consumer discretionary exposure is expansive, indicating that if markets perceive the election results as conducive to fighting inflation, the ETF could benefit.

XNTK could also benefit from a change in the majority party in Congress because it would mean tax breaks signed into law under a previous administration stand a better chance of surviving through the next presidential election.

“Under Republicans, it would also be more likely that popular tax breaks get extended, or some provisions in the Inflation Reduction Act get reversed. As a result, sectors with large amounts of foreign income —,Technology/Semiconductors,— could be favored over domestic low-tax sectors like Real Estate),” added Bartolini.

The bulk of XNTK’s tech holdings are mature companies such as International Business Machines (NYSE:IBM), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN), which could signal that the ETF is offering some near-term value.

Bartolini also mentioned the SPDR S&P Semiconductor ETF (XSD B+) as a possible beneficiary of upcoming electoral outcomes.

For more news, information, and strategy, visit the ESG Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X