Simeon Hyman, Global Investment Strategist for ProShares, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the post-election markets and the ProShares ETFs that can position investors during times of heightened uncertainty.
Hyman notes that the energy sector might not be in good shape moving into 2025. While oil and gas prices are low, earnings growth expectations for the sector are high. Reduced regulations that encourage drilling may drive oil and gas prices even lower. The ProShares S&P 500 Ex-Energy ETF (SPXE) allows investors to invest in the S&P 500 without exposure to stocks in the energy sector.
The ProShares S&P 500 High Income ETF (ISPY) earns income through the daily sale of equity call options. After the November 2024 US election, the fixed income outlook is uncertain, with the Fed easing rates on the short end, inflation pressuring the long end, and very tight credit spreads.
Hyman notes that cryptocurrencies are not always a risk-on asset, as bitcoin prices increased during the SVB banking crisis. Bitcoin is not always highly correlated with equities and can serve a role as a portfolio diversifier. The ProShares Bitcoin ETF (BITO) offers exposure to bitcoin futures. ProShares offers three other ETFs that invest in bitcoin and/or Ether.
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) focuses on high-quality US companies with a history of growing dividends. While value and dividend-oriented stocks have underperformed in a strong growth market, these stocks currently trade at low levels of valuation.
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