A Donald Trump Win Should Help These ETFs

Investors Could Stash Gold in an Uncertain Time

Investors are piling into gold, the most important safe-haven asset, amid uncertainty surrounding the U.S. elections. Analysts think that Gold ETFs such as the SPDR Gold Trust (ETF) (NYSEARCA:GLD) and iShares Gold Trust (ETF) (NYSEARCA:IAU) are set for big gains if Trump takes over the Oval Office, due to the uncertainty of his policies and his hostile approach against the Chinese devaluation of its currency for the purposes of expanding its exports. Trump also plans to clear the national debt by printing more money, which will make gold even more valuable compared to the Dollar. Donald Trump’s presidency is also expected to cause a slowdown in the U.S. economy, due to a proposed $10 trillion in tax cuts, protectionist policies, and high tariffs on Chinese and Mexican imports. According to the ABN Amro, gold could skyrocket to $1,850 if Trump assumes the Presidential mantle.

The SPDR Gold Trust (ETF) (NYSEARCA:GLD) added a whopping $12.2 billion worth of new gold assets to its portfolio in the first-half of 2016. The ETF is up by over 21% so far this year, while the iShares Gold Trust (ETF) (NYSEARCA:IAU) is up by over 21% year-to-date.

Infrastructure ETFs Could Also Thrive If Trump Gets Elected

The Materials Select Sector SPDR (NYSEARCA:XLB) is a Massachusetts-based ETF which tracks the Materials Select Sector Index. The ETF has huge prospects in the event that Donald Trump wins the election.

The Don has repeatedly complained about the deteriorating infrastructure of his home country, and has pledged to spend billions to remedy it. Trump’s biggest talking point in the campaign has been his plan to build a 50-foot wall on the border of Mexico which will stretch some 2,000 miles. Analysts estimate that this project could cost anywhere between $15 billion and $25 billion. Trump, having a lot of experience in the industry, also plans to upgrade and build roads, bridges and airports. Back in August, Hillary Clinton also vowed to spend $275 billion over the next five years on infrastructure, should she become President. Trump responded with a promise that he would spend double the amount which Hillary proposed.

The Materials Select Sector focuses on companies from the chemicals, metals, mining, packaging, and construction sectors. It is the largest materials ETF in terms of assets. The ETF has gained 9.1% so far this year, beating the S&P 500 by 320 basis points.

Disclosure: None