2 ETF Areas To Gain From Michael Bloomberg's Campaign

U.S. presidential election is in November and candidates are bucking up for the campaign. Democratic presidential hopeful Michael Bloomberg has already spent $217 million on television and digital advertising. Wall Street Journal noted that total Bloomberg spending is about 75% of the collective amount of all other campaigns, including Trump’s (read: Tax-the-Rich Slogan Not to Help Muni Bond ETFs Much).

Below we highlight two ETF areas that are going to receive a boost from Bloomberg’s campaign, as indicated by the MarketWatch article.

Clean Energy to Shine

Most democrat candidates including Bloomberg are pledging to end the fossil-fuel era, going completely against President’s Trump’s call. Bloomberg’s latest climate plans demand new buildings to produce zero carbon emissions by 2025.

However, Bloomberg’s proposal is still less lofty than the Green New Deal that many of his competitors are demanding. The Green New Deal talks about achieving net-zero carbon emissions within 10 years. To turn the U.S. economy carbon-free, Bloomberg seeks to control pollution from cars and trucks, the nation’s key source of carbon emissions. His proposal calls for spending $250 billion on clean energy research and development by 2025.

Needless to say, clean energy ETFs like Invesco WilderHill Clean Energy ETF (NYSE:XLE) PBW, ALPS Clean Energy ETF (BO:ACES) , First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN and Invesco Solar ETF (LON:TAN) should be clear winners (read: Best ETFs to Combat Climate Change).

Electric Vehicles to be Charged-Up

Bloomberg intends to see all new cars as electric-driven by 2035.While the plan calls for new federal standards needing all new cars to be electric by 2035, it would necessitate 15% of American trucks and buses to be pollution-free by 2030.

The move is part of his promotion toward a clean energy economy. With automation and technological breakthrough rapidly emerging, the fast pickup in autonomous vehicles is in the cards.

Forget industry biggie Tesla (NASDAQ:TSLA) , other players are also eyeing the segment. In the recent past, more than 10 automakers have come up with their EV plans. Japanese tech giant Sony has built a prototype electric car, as part of its new Vision-S initiative, which is targeted at mobility (read: Electric Vehicles to Rev Up in 2020: Play These ETFs (Revised)).

There is also growing enthusiasm for Tesla’s all-electric “Cybertruck,” which is supposed to release in 2021 and 2022. Other electric trucks, including Rivian R1T and the electric version of Ford F-150, will also hit the markets soon.

ETFs that could benefit are Amplify Advanced Battery Metals and Materials ETF (TSXV:BATT) , Global X Autonomous & Electric Vehicles ETF DRIV, Ideanomics NextGen Vehicles & Technology ETF EKAR, KraneShares Electric Vehicles and Future Mobility Index ETF KARS, Global X Lithium & Battery Tech ETF (ASX:LIT) and SPDR S&P Kensho Smart Mobility ETF (BO:HAIL) .

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