As voters in the world’s largest economy prepare to head to the polls, Wall Street is experiencing huge volatility. This is especially true as the polls indicate a tight race between Democratic Party candidate Kamala Harris and Republican nominee Donald Trump. Neither candidate holds a meaningful edge in enough states to win 270 electoral votes, reflecting one of the closest presidential races in American politics. 

The S&P 500 and the tech-heavy Nasdaq Composite Index dropped 0.3% each in Monday’s trading session, a day before the elections, while the Dow Jones declined 0.6%. Meanwhile, the small-cap index — Russell 2000 — outperformed, gaining 0.4%. The U.S. dollar, Treasury yields and bitcoin dropped as investors pared bets on a Donald Trump victory. A weekend poll showed Harris, the Democratic Vice President, leading in Iowa. However, Polymarket continues to show Trump as the favorite (read: Election Strategy: How to Position Your Stock Portfolio).

This resulted in enough liquidity in the ETF world ahead of Election Day. While most of the funds traded at extremely high volumes, we have highlighted five ETFs that exchanged more than 35 million shares in hand in one day. These are iShares 20+ Year Treasury Bond ETF TLT, iShares China Large-Cap ETF (FXI), Financial Select Sector SPDR Fund XLF, SPDR S&P 500 ETF SPY and BlackRock iShares Bitcoin ETF IBIT.

iShares 20+ Year Treasury Bond ETF (TLT) - Volume: 49.7 million shares

The yields on the 10-year Treasury fell more than six basis points to 4.295% and the 2-year yields dipped nearly three basis points to 4.176%. The decline in yields led to a solid trading volume in TLT. iShares 20+ Year Treasury Bond ETF provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Years Bond Index. It holds 45 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.71 years and an effective duration of 16.27 years. 

TLT is one of the most popular and liquid ETFs in the bond space, with an AUM of $60.4 billion. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a High risk outlook.

iShares China Large-Cap ETF (FXI) - Volume: 49.2 million shares

Trump plans to raise tariffs on Chinese goods by at least 60%. The Biden administration has also imposed strict limitations on China’s access to advanced American technology. As such, iShares China Large-Cap ETF, which offers exposure to large companies in China by tracking the FTSE China 50 Index, saw massive volumes. It holds 50 stocks in its basket, with key holdings in the consumer discretionary sector at 37% share, while financials (28.7%) and communication (16.3%) round off the next two spots. 

iShares China Large-Cap ETF has AUM of $9.8 billion and an expense ratio of 0.74%. It has a Zacks ETF Rank #5 (Strong Sell) with a Medium risk outlook (read: China Stocks Plunge: Should You Buy the Dip With ETFs?).

Financial Select Sector SPDR Fund (XLF) - Volume: 41.7 million shares

The financial sector could benefit from anticipated tax cuts and deregulation under a Trump administration. The Financial Select Sector SPDR Fund is an ultra-popular ETF in the financial space with AUM of $44.2 billion. It seeks to provide exposure to 72 companies in diversified financial services, insurance, banks, capital markets, mortgage real estate investment trusts, consumer finance, and thrifts and mortgage finance industries. 

Financial Select Sector SPDR Fund follows the Financial Select Sector Index, charging investors 9 bps in fees per year. It carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 5 Best-Performing ETFs of October).

SPDR S&P 500 ETF (SPY) – Volume: 38.2 million shares

According to Forbes, a potential victory for Kamala Harris could lead to greater market surprises and shifts. If Donald Trump secures re-election, the markets could experience heightened volatility in the bond sector, alongside an increase in stock prices but with lower volatility, per a report by the Bank of Italy. SPDR S&P 500 ETF Trust tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7% of the assets. SPDR S&P 500 ETF Trust is heavy on the information technology sector, whereas financials, healthcare and consumer discretionary round off the next three spots with a double-digit allocation each. 

SPDR S&P 500 ETF Trust charges investors 9 bps in annual fees and has an AUM of $596.5 billion. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

BlackRock iShares Bitcoin ETF (IBIT) – Volume: 36 million shares

Bitcoin is viewed by some as a so-called Trump trade as Republican presidential nominee Donald Trump embraced digital assets during campaigning. Trump is supportive of cryptocurrencies and has vowed to make the United States the crypto capital of the planet. iShares Bitcoin Trust seeks to reflect the performance of the price of Bitcoin. It enables investors to access Bitcoin within a traditional brokerage account. The fund charges 25 bps in annual fees from investors. IBIT has AUM of $14.8 billion (read: 5 ETFs to Tap the Ongoing Bitcoin Rally).