The new trade agreement between the European Union and the United States that was announced in the style of an “audience” under a large political pomp in the Scottish turnberry marks a turning point in the transatlantic economic relationships.
While many observers are still discussing the geopolitical implications and the economic risks for European industry, a differentiated look at the investment page is already worthwhile – because two US sectors could be one of the clear winners: energy and armor.
The core of the deal: In the future, the EU will accept flat -rate tariffs of 15 percent to its exports to the United States, while taxes on American products are supposed to drop zero. This asymmetry caused criticism up to the name as a “submission”. In the end, however, it only shows that the Europeans obviously had the worse negotiating position. Some may complain about that, but quick improvements are not in sight.
So there are new realities: The EU Agreement undertakes, among other things, to remove American energy products in the volume of $ 750 billion and to invest another $ 600 billion in the US economy. Many of these commitments are not (yet) legally binding, but they send a strong signal in the direction of economic integration – with politically desired effects on both sides of the Atlantic. US energy groups gain predictability and market access, while armaments companies benefit from relieved export conditions, for example in aviation technology or military systems. This is exactly where three thematic ETFs come in, which enable investors to access these sectors who have become geopolitically more relevant.
If you want to invest in a targeted manner in companies that specialize in the promotion and processing of rare earths and strategic metals, you will find a correspondingly focused solution in the Vaneck Rare Earth and Strategic Metals ETF (ISIN IE0002PG6CA6 / WKN A3CRL9). The ETF physically depicts the MVIS Global Rare Earth/Strategic Metals Index and only includes 21 individual titles – including industry sizes such as China Northern Rare Earth, Albemarle and MP Materials. The running costs (ter) are 0.59 % PA, the fund volume is 141 million euros. A performance of +14.0 % has been available since the beginning of the year. However, the high specialization goes hand in hand with clear volatility (over 28 %).
The SPDR S&P US Energy Selector Ucits ETF (ISIN IE00BWBXM492 / WKN A14QB0) shows large US energy companies such as Exxonmobil, Chevron and Conocophillips and is very cost-effective with a ter of only 0.15 percent. The ETF physically invests in 23 titles and ends the yields. The latest annual return was -9.3 percent, but the perspectives improve: the promised decrease in American energy from the EU could boost the demand for oil and gas and thus also the sales of the US industry. The long -term environment also speaks for a comeback of traditional energy suppliers, especially in the context of growing geopolitical uncertainties and structural offerings.
Infrastructure -oriented investors could invest the Investco MorningStar US Energy Infrastructure MLP UCITS ETF ACC (ISIN IE00B94ZB998 / WKN A1T79J) Investco MorningStar us Energy Infrastructure MLP UCITS ETF ACC (ISIN IE00B94ZB998 / WKN A1T79J) Grip eye. The ETF focuses on so -called MLPs – listed US companies that operate energy infrastructure such as pipelines, warehouse or terminals. The total cost rate is 0.50 percent PA, yields are made. Despite a cautious annual performance of +4.9 percent, the fund convinces in the long term: the five -year return is over 200 percent. The role of this infrastructure is decisive, especially in times of increasing US exports. The stable earnings structure of these companies, which often have long -term contracts and regulated fee models, is particularly interesting.
The bottom line is that even if the new trade agreement between the EU and the United States is economically and politically not uncontroversial – for investors it opens up targeted opportunities in two sectors that massively benefit from the current geopolitical climate.