But what if you’re not willing to bet on this November’s election, and simply want a group of funds that are likely to be just fine regardless of who wins?
James Lowell of InvestorPlace has a few ideas.
ETF Idea #1: Fidelity Total Bond ETF (NYSE:FBND)
FBND has gained 6.5% this year, putting it roughly in-line with the S&P 500, and offers an attractive ~3% yield. It also pays monthly dividends, making it an ideal income play.
Fidelity Total Bond ETF (NYSE:FBND) is a buffer for volatile times. This actively managed ETF — that’s right, it’s an ETF that is run by one of the best active bond investors in the business, Ford O’Neil (along with Michael Foggin and Michael Plage) — owns investment-grade government and corporate bonds in a portfolio that benchmarks against the common bond investing benchmark, the Barclays U.S. Aggregate Index.
ETF Idea #2: Fidelity MSCI Health Care Index (NYSE:FHLC)
FHLC has risen 3% year-to-date and offers a ~1.7% yield. It’s diversified enough that a crackdown on biotech or pharma shouldn’t hurt it too much.
Buy Fidelity MSCI Health Care Index (NYSE:FHLC) on political dips. I expect healthcare swoons before, during and after the November election. But such political fainting spells will be dispelled quickly by the obvious and necessary secular growth trends that healthcare encompasses (aging demographics and emerging market demand growth).
ETF Idea #3: Fidelity MSCI Materials Index (NYSE:FMAT)
FMAT has more than doubled up the performance of the S&P 500 this year, up almost 16%. With still and other basic materials seeing renewed demand lately, it’s a good pick for betting on a continued economic recovery.
In contrast to healthcare, which accounts for 15.1% of the S&P 500, materials accounts for a mere 2.9% of the index. But Fidelity MSCI Materials Index (NYSE:FMAT) could turn out to be a win-win … no matter who dons the presidential crown in November. Shovel-ready infrastructure plays require the goods and services the companies in this index provides. Throw into the mix the massive stimulus efforts underway in Europe and Japan, and you have a bumpy but navigable road for these boots-on-the-ground companies.