An ETF That Could Perform Well Under Trump

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As President Donald Trump goes through his check list of policy changes, ETF investors may look to a targeted strategy to capitalize on changes under a Republican presidency.

Specifically, the actively managed EventShares Republican Policies Fund (BATS: GOP) seeks to provide capital appreciation by unlocking value from Republican policy-driven events and themes.

GOP employs "rigorous research process incorporating fundamental and quantitative strategies to identify securities expected to be impacted by Republican Policies," according to EventShares.

GOP covers themes like deregulation, defense and border protection, tax reform, energy independence and infrastructure.

One of President Trump's key platforms has been infrastructure spending as he pledged to spend $1 trillion. Additionally, some high-profile projects are already underway as government programs and private investments sought to address the the nation’s old infrastructure.

“Our GOP Fund has held infrastructure as one of its five policy subthemes since launch last October," Ben Phillips, EventShares CIO, said in a note. "It has long been our view that infrastructure will be the next major policy item following tax reform. Given the bipartisan support for infrastructure during the 2016 presidential election, we think enough bipartisan support remains in Congress for a bill to pass."

However, Phillips argued that the $1 trillion price tag on infrastructure spending may be a little price, so the government may have to supplement it through private partnerships that can help save taxpayer's money.

Over the next one to three years, the Republican majority may be focused on modernizing the country's infrastructure, and investors may have an opportunity to capitalize on the growth opportunity through infrastructure-related ETFs.

For instance, GOP includes infrastructure-related components like Martin Marietta, Vulcan Materials, United States Steel, KBR, Granite construction and Primoris Services.

For more information on the infrastructure sector, visit our infrastructure category.

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