Small caps
The prospect of monetary easing by the Fed is a game changer for US small caps, which are highly sensitive to financing conditions. Historically, these companies outperform during periods of recovery or monetary easing.
They make up the Russell 2000 index. Unlike large multinationals, they derive most of their revenue from the US market, which makes them particularly sensitive to fluctuations in the domestic economic cycle.
The Vanguard Small Cap ETF (ISIN: US9229087518) is an effective gateway to gaining exposure to the index. Its significant assets under management (Fund total net assets as of 07/31/2025 $154.3bn — Share class total net assets $63.5bn) reflect investors' belief in the fund, up 7.6% from a year ago. Currently with 66 holdings, these include Builders FirstSource, Inc. (market cap. $15.33bn), which represents a weighting just shy of 0.40%, sector coverage is broad: Builders FirstSource operates in... building materials, while PTC Inc. is an IoT and augmented reality firm with annual revenues of just over $2bn. It has a total expense ratio of 0.05%.
Real estate
Real estate companies and real estate asset management companies are highly dependent on financing costs, as a large part of their investments rely on debt to acquire, develop and manage assets.
The iShares U.S. Real Estate ETF - USD was Created in June 2000. This ETF has AuM of €3,280m as at end-June, up almost 20% over the past year, offering a varied exposure to the sector. Up almost 5% YTD, its star performer is a real estate investment trust, which is focused on health care infrastructure, up over a third so far this year. Its total expense ratio of 0.39% is consistent with those of other thematic ETFs.
Technology
When interest rates fall, growth stocks benefit the most: their long-term projected profits increase in value and their valuation multiples receive immediate support. This is how valuation models work. At the same time, easier access to financing encourages investment and therefore often innovation. This helps to accelerate expansion projects.
Global X Artificial Intelligence & Technology ETF - USD, (ISIN: US37954Y6326) up 16.7% YTD it is clearly surfing the AI wave in the market, reflected in Aum of €3,118m, up a whopping 60% from a year ago.
Names of tech giants such as Microsoft, Alibaba and Cisco feature in its holdings, as does Palantir - tipped by some to become the next market trillionaire, entering the big league of the magnificent seven (watch this space)...
A total expense ratio of 0.68% may seem a tad higher than aforementioned ETFs, although it seems worth it.
Construction and infrastructure
Here we have iShares Global Infrastructure ETF - USD (ISIN: US4642883726), which targets companies directly exposed to infrastructure development and modernization in the United States. The sector's appeal lies in the combination of structural need and public support. The latest report from the American Society of Civil Engineers still gives the country's infrastructure a "C" rating: investments will have to come sooner or later, despite Donald Trump's desire to reduce federal budgets.
Its AuM of $8bn m at end-June has almost doubled from a year prior, with YTD performance of +15.5%.
The ETF was launched in 2007, has a total expense ratio of 0.42%, with stakes in 50 companies that include big names such as Iberdrola, ADP and Enel. It uses physical replication, which means that the securities are held directly in the portfolio. This method contrasts with synthetic replication, which generally uses derivatives.
Its biggest weight (4.51%) goes to Australia's Transurban group, while Getlink represents 2.3%.
