Investors expect that the Trump administration's contentious budget reconciliation law, known as the One Big Beautiful Bill Act, may provide a boost to companies in industries ranging from domestic semiconductor manufacturing to fossil fuels. Though signed on July 4, 2025, the bill is designed to unfold gradually, with different components taking effect in the coming months and years. This means that investors should still have time to make investment decisions in response to the contents of the act.
For those not looking to make a precise bet on individual names that could benefit from the bill, there is also the option of an exchange-traded fund (ETF) or similar product. The automatic diversification that ETFs provide means they may be more balanced in terms of risk and reward profile compared with individual securities. When selecting an ETF to target in response to the new reconciliation law, it's helpful to start with industries that are most likely to benefit: defense, domestic manufacturing, and U.S. energy.
