Polls continue to show that Joe Biden will be the winner in tomorrow’s Presidential election. Therefore, it’s prudent for investors to prepare their portfolios for a Democratic President to take office. 

Biden has campaigned on his desire to promote clean energy and is determined to protect and build on the Affordable Care Act.  Therefore it makes sense that stocks in these sectors should get a boost, if the polls are correct.

With this in mind, here are three top ETFs to invest in for a Biden Presidency:

Invesco WilderHill Clean Energy ETF (PBW)

PBW tracks the investments in the WilderHill Clean Energy Index. This index contains stocks that develop clean energy and conservation solutions. Even if the publicly traded companies that comprise the index do not immediately increase in value after a potential Biden victory, mere speculation of future success should propel them higher. These stocks are likely to go up even more should Congress turn blue.

Check out the PBW POWR Ratings and you will find the ETF has an “A” grade in the Trade Grade component along with “B” grades in the Peer Grade and Buy & Hold Grade components. PBW is ranked 6th of 36 Energy Equities ETFs. PBW was priced at $54 on September 24 and has since shot up to $63 in anticipation of a Biden victory along with a blue wave in congress.

PBW has a year-to-date return of 93% along with a 6-month price return of 110%. Look for PBW to surge if Biden is elected.

SPDR S&P Kensho Smart Mobility ETF (HAIL)

The electric vehicle industry has been soaring in 2020.  If elected President, Biden has said that he plans to build more than 500,000 charging stations by 2030, restore the full electric vehicle tax credit, and institute strict regulations that would encourage the use of electric vehicles.

HAIL invests around 80% of its assets in the smart transportation sector.  Three of it’s top four holdings are electric vehicle manufacturers: Nio (NIO), Workhorse Group (WKHS), and Tesla (TSLA)

It’s clear investors are intrigued by this up-and-coming ETF, as it has a year-to-date price return of about 30%. HAIL’s POWR Ratings are highlighted by a “B” Industry Rank grade.

SPDR Select Sector Fund – Health Care (XLV)

Biden’s healthcare plan would help more Americans receive medical treatment and care. As a result, healthcare stocks like those featured in XLV are likely to increase in value.

XLV’s POWR Ratings are spectacular, highlighted by an “A” Trade Grade component along with “B” grades in the Industry Rank and Buy & Hold Grade components. Furthermore, XLV is ranked 20th of nearly 40 Health & Biotech ETFs.

XLV’s 2019 price return was in excess of 20% and has a 3-year price return of 22%. XLV is primarily comprised of healthcare service providers, healthcare equipment companies, pharmaceutical makers, biotech companies and life sciences businesses. This is a non-diversified fund in that it is 100% weighted in healthcare stocks. The ETF’s top holdings are Johnson & Johnson (JNJ) at 9.87%, UnitedHealth Group (UNH) at 7.46%, and Merck (MRK) at 5.28%.

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XLV shares were trading at $102.63 per share on Monday afternoon, up $0.97 (+0.95%). Year-to-date, XLV has gained 2.08%, versus a 3.36% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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