Powell Exit Triggers ETF Plays: Banks, Small Caps, Real Estate

As Fed Chair Jerome Powell’s term ends in May and Kevin Warsh is nominated to succeed him, markets anticipate rate cuts paired with balance-sheet shrinkage. The piece highlights three ETFs that could benefit: Financial Select Sector SPDR (XLF) for banks from lower rates, iShares Core S&P Small-Cap (IJR) for rate-sensitive small caps, and iShares US Real Estate (IYR) for REITs that historically outpace stocks after easing cycles. Consider XLF, IJR, and IYR as potential beneficiaries amid the policy shift.