As the midterm election approaches, investors may try to anticipate how different potential outcomes could impact the market. After two years of unified control by the Republican party, polls and analysis are predicting a divided government, with at least one of the chambers of Congress controlled by Democrats beginning in 2027. Of course, these remain predictions and, therefore, difficult to base investment decisions on prior to confirmation.
Nonetheless, a divided government may mean that one sector could thrive: historically, healthcare stocks tend to perform well in such environments. Two exchange-traded funds (ETFs) in particular may be worth considering for investors anticipating a favorable environment for the sector in the coming months.
