With the U.S. election behind us, all eyes are on how Trump's presidency might shape the ETF market. Investor anticipation is high for sectors like banking and energy, which tend to thrive under Republican-led policies. Tom Lydon, former vice chairman of VettaFi, notes that during Trump’s previous term, deregulation in energy lifted oil and gas stocks, with similar outcomes expected for energy ETFs now. John Davi, CEO of Astoria Portfolio Advisors, predicts that a "red sweep" could also benefit banks, small caps, industrials, cyclicals, and crypto-related ETFs. In fact, the Invesco KBW Bank ETF, iShares Russell 2000, and Bitwise Bitcoin ETF are already highlighted as potential winners.

Matt Bartolini from State Street Global Advisors echoes this sentiment, especially on financials. He observed a flood of cash—$1.3 billion—into the SPDR Regional Bank ETF (KRE) right after the election, with investors betting on relaxed capital regulations and steeper yield curves to boost bank profits. Energy ETFs, though seeing outflows earlier in the year, could soon reverse if increased drilling permits and supportive fiscal policies come through. The "Trump trades" in the ETF space may quickly consolidate, with themes like reshoring and U.S. manufacturing gaining traction in single ETFs, including MAGA, MADE, and RSHO.