Futu Research | Investment Guide under Trump's Victory: Seize the Opportunities of ETFs and Concept Stocks brought about by Policy Changes

In November 6th, Eastern Time, former US President and Republican candidate Donald Trump announced his victory in the 2024 presidential election.

For investors, Donald Trump's return to the White House will trigger a series of policy changes, as well as nurture a variety of investment opportunities. Based on Trump's core governing philosophy, we have carefully selected a series of long-term investment opportunities worth paying attention to, and recommend laying out through exchange-traded funds (ETFs) and relevant concept sectors, so that investors can efficiently and conveniently participate in the market dividends brought by this policy transformation.

1. What are the long-term ETFs worth paying attention to?

1. Tax reduction policy

Bullish sector: Overall enterprises, especially large multinational corporations, small businesses, and consumer sectors

Bullish logicTax reduction policies directly reduce the tax burden on enterprises, enhance their profits and cash flow, allowing these companies to have more funds for investment, stock buybacks, or dividends, increasing shareholder returns. At the same time, the reduction in personal income tax will increase consumers' disposable income, promoting consumption growth.

Related ETF:

Overall enterprises, especially large multinational corporations: $SPDR S&P 500 ETF (SPY.US)$， $Invesco QQQ Trust (QQQ.US)$

Small enterprises: $iShares Russell 2000 ETF (IWM.US)$ $Vanguard Small-Cap ETF (VB.US)$

Infrastructure construction.

Bullish sector: Building materials, construction engineering companies, heavy machinery manufacturers

Bullish logic: Driving large-scale infrastructure construction plans, including building roads, bridges, airports, etc., will directly increase demand for building materials and construction engineering services, driving growth in related industries.

Construction engineering company: $Ishares U.S. Infrastructure Etf (IFRA.US)$ , $Global X Funds Global X U.S. Infrastructure Development Etf (PAVE.US)$

Manufacturer of heavy machinery: $Industrial Select Sector SPDR Fund (XLI.US)$ ,$Vanguard Industrials ETF (VIS.US)$

3. Energy policy (support for traditional energy)

Bullish sector: Oil and natural gas, coal, shale oil

Bullish logic: The Trump administration tends to relax regulations on the traditional energy sector, supporting the development and use of fossil fuels. This will reduce the operating costs of energy companies, increase their profit margins, and promote self-sufficiency and export growth in the US energy sector.

4. Trade Policy (Protectionism)

Bullish sector: Domestic manufacturing, steel, aluminum

Bullish logicBy implementing tariffs and trade barriers, the Trump administration is attempting to protect the domestic manufacturing industry in the usa from foreign competition. This policy may benefit domestic manufacturing companies, as their products' competitiveness in the domestic market will relatively increase.

Related ETF:

Domestic manufacturing industry: $Ishares U.S. Industrials Etf (IYJ.US)$ ,$Vanguard Industrials ETF (VIS.US)$

In addition to ETFs, 'Donald Trump concept stocks' can also be focused on

We have launched $Donald Trump (LIST22962.US)$ For investors to pay attention to and trade. The following are the main concept sectors benefiting from Donald Trump's election and their rationale:

Source: Futubull

1. Financial institutions

Logic. : Trump administration's tax reduction policies and relaxed financial regulations are bullish for banks and financial institutions.

Beneficiary companies : Banks, asset management companies.

2. Natural gas production companies

Logic.The Trump administration supports the traditional energy industry, relaxes regulations, and encourages the exploration and use of natural gas.

Beneficiary companiesNatural gas production companies and related equipment manufacturers.

3. Insurance Companies

Logic.The adjustments made by the Trump administration in financial regulation and health insurance policies may be bullish for the insurance industry.

Beneficiary companiesVarious insurance companies.

4. Biopharmaceutical companies

Logic.Donald Trump's administration's policy adjustments in the pharmaceutical market, including lowering drug prices and reforming the medical insurance system.

Beneficiary companiesPharmaceutical companies, medical device manufacturers.

5. Cryptocurrency mining companies

Logic.Some policies of the Trump administration may impact the cryptocurrency market, especially in the adjustment of financial regulations.

Beneficiary companiesCryptocurrency mining companies and related technology companies.

6. Companies Benefiting from Trade Protection

Logic.Trump advocates trade protectionism, protecting domestic manufacturing through tariffs.

Beneficiary companiesSteel, aluminum, and other manufacturing enterprises benefiting from trade protection.

7. Agricultural equipment company

Logic.The agricultural policies and trade policies of the Trump administration may affect the demand for agricultural equipment.

Beneficiary companiesAgricultural equipment manufacturers.

With Trump re-elected as the President of the United States, his policy changes will bring a series of new investment opportunities.

We can either invest in related ETFs to effectively capture these opportunities and diversify risks, or use concept stocks to capture the investment opportunities of the underlying stocks.

$ Donald Trump concept stocks (LIST22962.US) $ The Trump Media Technology Group (DJT.US)

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