Zhitong Finance APP has learned that as the U.S. mid-term elections kick off, Wall Street’s attention is gradually shifting to those ETFs that are driven by political factors.
Among them, conservative-linked ETFs are: God Bless America ETF (YALL.US), American Conservative Values ETF (ACVF.US) and Point Bridge America First ETF (MAGA.US).
And ETFs tied to liberals and environmental issues are: Democratic Large Cap Core ETF (DEMZ), Global Clean Energy ETF-iShares (ICLN.US) and Invesco Solar ETF (TAN.US).
Year-to-date, these ETFs have returned: YALL+8.1%, ACVF-18%, MAGA-2.1%, DEMZ-22.8%, ICLN-11.2%, TAN-9%. With the exception of DEMZ, most ETFs outperformed the S&P 500.
In this mid-term election, hot topics such as the economy, inflation, reproductive rights and the conflict between Russia and Ukraine have become decisive factors in the election result. 34 of the 100 seats in the Senate and all 435 seats in the House of Representatives will be decided in the election on Tuesday local time.
Markets are now widely expecting Republicans to take control of the House of Representatives (Democrats currently hold a narrow majority in the House of Representatives). Republicans have an 84 percent chance of winning the House majority, according to Fivethirtyeight, a professional election pollster.
On the Senate side, the race remains tight, although FiveThirtyEight data shows Republicans in the lead. Results are likely to depend on states like Georgia, Pennsylvania and Nevada.