Now that investors have digested the results of Election Day, there have been a number of sectors rising and falling in response to potential outlooks. While there’s no way of knowing for certain how things will change once President-elect Donald Trump enters the White House in January and a new Congress gets to work soon after, it’s pretty safe to say that the next year or two may look very different than the last from a policy perspective.
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That means now may be the time to reassess certain risks and opportunities with an eye for the future. Whether it’s energy policy, the interest rate environment or just the broader sentiment on Wall Street, there’s certain to be some fireworks once the dust settles after the holidays.
The following seven tactical funds all have different things to offer and may rank as the best ETFs to buy now based on recent news reports and stock market trends:
| ETF | Expense Ratio | Assets Under Management |
| iShares U.S. Oil Equipment & Services ETF (ticker: IEZ) | 0.40% | $164 million |
| U.S. Global Jets ETF (JETS) | 0.60% | $1.1 billion |
| Global X Defense Tech ETF (SHLD) | 0.50% | $760 million |
| Roundhill Magnificent Seven ETF (MAGS) | 0.29% | $1.1 billion |
| SPDR S&P Regional Bank ETF (KRE) | 0.35% | $5.5 billion |
| Vanguard Real Estate ETF (VNQ) | 0.13% | $36.8 billion |
| iShares MSCI USA Min Vol Factor ETF (USMV) | 0.15% | $24.2 billion |
iShares U.S. Oil Equipment & Services ETF (IEZ)
Assets: $164 million Expense ratio: 0.40%
President-elect Trump said he would be appointing oil executive Chris Wright to be Secretary of Energy, signaling pretty clearly that alternative energy is less of a priority and a focus on domestic energy production will instead be the norm in 2025. That bodes particularly well for IEZ and the major oil services stocks that make up its top components, like Baker Hughes Co. (BKR), Schlumberger Ltd. (SLB) and Halliburton Co. (HAL). This iShares fund has rallied more about 10% in the month since Election Day in anticipation of a favorable environment ahead, and that trend will likely pick up steam after Trump moves into the White House in January. IEZ only holds about 30 energy stocks, but is laser-focused on equipment and service players to avoid the volatility that explorers or integrated oil companies might see based on the short-term ups and downs of crude oil prices.
U.S. Global Jets ETF (JETS)
Assets: $1.1 billion Expense ratio: 0.60%
The airline industry has been flying high over the last month or two as industry insiders are predicting a strong finish to 2024 thanks to strong consumer spending trends, particularly in the premium travel category. As a result, major U.S. airlines including United Airlines Holdings Inc. (UAL), Delta Air Lines Inc. (DAL) and American Airlines Group Inc. (AAL) have seen significant outperformance. With high hopes for continued success in the first quarter of 2025, the JETS ETF that holds about 50 leading air carriers has been rallying strongly and is up about 50% from its August lows. This is the best ETF for those who want to play broad airline trends without picking individual stocks in the industry.
Global X Defense Tech ETF (SHLD)
Assets: $760 million Expense ratio: 0.50%
While there’s a lot of talk about cutbacks in government spending, it’s almost impossible to imagine that a Republican-controlled Congress would do anything other than allocate more money to U.S. defense spending, particularly with ongoing conflict in Ukraine and Gaza. This Global X ETF is focused on about 40 total holdings, including leading defense names like Lockheed Martin Corp. (LMT), RTX Corp. (RTX) and Northrop Grumman Corp. (NOC), and remains one of the best ETFs to play this industry. Shares have rolled back a bit since the immediate pop after Election Day, but SHLD is up more than 40% year to date to show strong momentum for this fund during an uncertain time for geopolitics.
[Strategic Technology Trends in 2025]
Roundhill Magnificent Seven ETF (MAGS)
Assets: $1.1 billion Expense ratio: 0.29%
One of the top-performing ETFs of 2024, with more than 50% returns year to date, MAGS invests in a very limited portfolio of the so-called Magnificent 7 stocks: Nvidia Corp. (NVDA), Google parent Alphabet (GOOG, GOOGL), Apple Inc. (AAPL), Tesla Inc. (TSLA), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META) and Microsoft Corp. (MSFT). The fund is a uniquely focused option that depends on a very small list of very large companies, but for investors who want to stick with current leaders and depend on their continued dominance in 2025, MAGS provides a simple and effective way to play top tech stocks.
SPDR S&P Regional Bank ETF (KRE)
Assets: $5.5 billion Expense ratio: 0.35%
The collapse of Silicon Valley Bank in 2023 caused regional banks to take it on the chin. But since then we’ve seen significant stabilization in the sector. What’s more, the “America first” agenda that will roll out in Washington is aimed at decidedly local projects, which means smaller financial institutions may benefit from these policies rather than multinational megabanks. KRE has added about 40% in the last six months alone, and is looking strong heading into 2025. The fund holds about 140 smaller banks, with top holdings including M&T Bank Corp. (MTB), Huntington Bancshares Inc. (HBAN) and Regions Financial Corp. (RF).
Vanguard Real Estate ETF (VNQ)
Assets: $36.8 billion Expense ratio: 0.13%
VNQ is the runaway leader among real estate ETFs, with the largest and most liquid footprint of funds in the sector. It holds more than 150 REITs, or real estate investment trusts, including warehouse operator Prologis Inc. (PLD), telecom infrastructure player American Tower Corp. (AMT) and data center operator Equinix Inc. (EQIX), among others. The prospect of more interest rate cuts is appealing to real estate firms given how reliant they are on borrowing to expand their footprints, so a continued march downward in rates would naturally lift this sector. And for those looking beyond growth to investments that provide a steady stream of income, the generous 3.4% yield of this fund also makes it appealing.
iShares MSCI USA Min Vol Factor ETF (USMV)
Assets: $24.2 billion Expense ratio: 0.15%
Speaking of looking beyond growth, if many of the other ETFs out there seem a bit too risky or way too dependent on rosy growth forecasts, USMV offers peace of mind with a strategy designed to keep you safe above everything else. It layers on a low-risk approach to its holdings by focusing on stocks with lower volatility characteristics relative to the broader U.S. stock market. By way of example, its top holdings right now include entrenched staples like retailer Walmart Inc. (WMT) and trash company Waste Connections Inc. (WCN). These aren’t sexy AI plays or growth-oriented startups, but that’s by design. The 185 or so holdings are picked to provide much lower volatility than their peers, via an ETF designed to protect you from big moves to the downside. If you’re worried about 2025 being a bit choppy, USMV is a strong option with a more defensive posture.
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Update 12/03/24: This story was published at an earlier date and has been updated with new information.
