While some Americans were elated with Obamas re-election, Wall Street made it quite clear who it had voted for as markets took a sharp nosedive in a post-election sell off immediately following the Presidents victory. To many investors, Obamas re-election has placed looming concerns over the Fiscal Cliff to the forefront, as the automatic round of massive spending cuts and tax hikes now seem inevitable come January 1. And with Democrats maintaining control of the Senate and Republicans dominating the House, many remain understandably concerned about the split Congress coming up with a viable resolution [see 101 ETF Lessons Every Financial Advisor Should Learn ].

Biotech Booming

*Returns as of 11/7/2012

Biotechnology ETFs have certainly held their ground over the last few years, as many companies within the industry continue to be pioneers in the healthcare field. Big names like Amgen Inc. (AMGN), Gliead Sciences Inc (GILD) and one of Forbes top picks for most innovative companies. Alexion Pharmaceuticals (ALXN), have all enjoyed handsome returns, with many logging in double-digit gains just one day after the election.

Without a doubt, there has been a steady uptrend for these biotech ETFs, as illustrated by the funds stellar returns. For those looking to make a leveraged play on the sector, ProShares Ultra Nasdaq Biotechnology ETF (BIB ) is currently the only option, but be aware that this powerful tool comes with a steep price tag, clocking in at 0.95%. Year-to-date, BIB is up a whopping 46.72% [see also Baby Boomers ETFdb Portfolio ].

Supply Side Winners: Medical Devices

One of the main objectives the President wishes to achieve with Obamacare is the expansion of free preventative services and increased access and affordability. With this consequently comes an increased demand for medical equipment and devices as more people enter the healthcare consumer pool. Currently, there are only two ETFs that offer targeted exposure to this niche segment of the healthcare world: iShares Dow Jones US Medical Devices Index Fund (IHI ) and State Streets SPDR S&P Health Care Equiptment ETF (XHE ).

Considering these two funds targeted focus, it is not surprising to see some major overlaps in holdings, with industry leaders like Intuitive Surgical (ISRG) and Varian Medical Systems, Inc (VAR) both making appearances in IHIs and XHEs top ten holdings. Year-to-date, XHE has gained 13.56%, while IHI has trailed behind by only a slim margin. For the cost-conscious investors, XHE may be a more appealing option, as it charges 13 basis points lower than IHI [see also Vote For Obama Or Romney With These ETFs ].

Pharmaceuticals Power On