Biden vs. Trump: American Manufacturing Revival in Focus – This Fund Offers Exposure To U.S. Reshoring Efforts, Offering Protection Against Supply Chain Turmoil

As Americans prepare to head to the election polls next year, one thing is certain: Whether President Joe Biden or former President Donald Trump –the two candidates leading opinion polls– win the White House, a top priority for both is reviving the U.S. economy by bringing mining and manufacturing back to the U.S. 

Biden's Inflation Reduction Act (IRA), which was implemented in 2022, aimed at boosting domestic mining for minerals needed for electric vehicle production. His administration's push to revive U.S. manufacturing is also seen as a major win, with Biden's IRA and CHIPS and Science Act seeding over $200 billion in fresh investments for new home-based projects by U.S. companies, said Forbes. 

During Trump's campaign in the lead-up to the 2016 election, the former star of “The Apprentice” promised to revive manufacturing through trade, tax and regulatory policies. Although Trump's promises mostly fell flat, according to the Alliance For American Manufacturing, the former president is currently campaigning on many of the same MAGA policies. 

What It Means: Amid the ongoing war in Ukraine, continually rising U.S-China tensions and the newly escalated Israel-Hamas conflict, Americans continue to feel the effects of inflation, especially through the rising costs of food and fuel. Additionally, the fallout of the COVID-19 pandemic, which both ignited and highlighted supply chain issues, proved supply chain turmoil is the greatest threat to growth, which Americans saw firsthand when standing in front of empty shelves at grocery stores. 

Throughout the last few years, investors have learned that negative geopolitical headlines strongly correlate to a rise or drop in many stocks, especially companies that rely on international companies for parts, equipment, products or services. 

As the shift toward relocating the entire supply chain to the U.S. gains momentum, investors might seek opportunities to benefit from the government’s present and future reshoring initiatives. 

The Tema ETF Trust Tema American Reshoring ETF RSHO offers protection against trade wars, geopolitics and supply chain failures, holding companies that through their business practices and initiatives are set to emerge as victors in the reshoring wave.  

The fund's industry breakdown is heavily weighted in the industrial sector, which makes up 74.01% of its holdings, while companies focused on materials make up about 20% of the ETF's holdings.  

Since RSHO began trading on May 11, the ETF has soared 14.32%, outpacing the S&P 500, which is up about 5.75% over the same period. 

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