Editor’s Note: The stock market has gotten off to a rocky start this year due to conflicting messages from the White House regarding its legislative agenda. Whether its immigration reform, energy policy, or trade tariffs, nobody on Wall Street is quite sure what will happen next. Since the outcome may be quite different from the expectation, these three funds could rebound strongly later this year if things do not go as planned.

iShares MSCI Mexico ETF

Whether you love him or hate him, one thing everyone can agree on is that President Trump enjoys using Mexico as his political pinata. During his first term, building a “big, beautiful wall” along the USA’s southern border was one of his favorite rallying cries. This time, he has weaponized the threat of import tariffs to bring Mexico to the negotiating table.

That is why the iShares MSCI Mexico ETF (NYSE: EWW) fell from above $70 shortly before last November’s general election to below $50 by the end of December. At that share price, the fund is no higher now than it was three years ago.

The fund’s objective is “to track the investment results of a broad-based index composed of Mexican equities.” From a sector perspective, those equites primarily consist of consumers staples (30%), financials (19%), materials (17%), and industrials (16%).

Despite Trump’s incessant beratement of Mexico, its economy (as measured by gross domestic product) grew from $1.1 trillion in 2020 to 1.8 trillion three years later thanks in large measure to the United States-Mexico-Canada Agreement (USMCA). If a full-blown trade war with Mexico can be averted, its economy should continue to grow at a healthy clip.

VanEck Green Infrastructure

If ever there was a fund that is squarely at odds with the environmental policies of the Trump administration, it is the VanEck Green Infrastructure ETF (NSDQ: RNEW). The fund was launched in October 2022 on the premise that the Biden administration would prioritize federal spending on renewable energy projects. Presumably, they did not anticipate Trump being back in the White House a few years later.

According to the fund sponsor, its mission is to “track the performance of those companies that are involved in the production, transmission, or distribution of green energy and/or are engaged in business activities that seek to establish a sustainable infrastructure to facilitate the holistic use of green energy and positively impact the environment.” You won’t see those words coming out of the White House anytime soon.

So far, the fund has gotten off to a slow start. At the beginning of this month, it claimed net assets of less than $2 million. Although the fund is small, its holdings consist primarily of large-cap stocks domiciled in the United States. Its top three holdings are Republic Services (NYSE: RSG), Cheniere Energy Partners LP (NYSE: CQP), and Ecolab (NYSE: ECL).

I doubt the Trump administration will change its stance towards renewable energy. However, that may not be necessary for this fund to get moving. Trump confidante Elon Musk is heavily invested in clean energy via his electric vehicle (EV) company Tesla (NSDQ: TSLA), so perhaps his influence will motivate Wall Street to take a closer look at the sector.

SPDR S&P Retail ETF

Although President Trump named one of his children, Tiffany Trump, after the eponymous jeweler, his trade policy isn’t doing retailers in this country any favors so far. That dynamic is evident in the performance of the SPDR S&P Retail ETF (NYSE: XRT), which fell 10 percent from January 31 to March 6 as a series of import tariffs were threatened, imposed, deferred, and then partially reinstated.

In fact, this fund hasn’t made any headway over the past four years. The “COVID bump” that drove its share price above $100 in 2022 did not last long. For the past year it has mostly been stuck in a trading range around $75.

The fund’s objective is to “provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Retail Select Industry^® Index.” For that reason, it is heavily diversified with no holding comprising more than 2 percent of the fund’s total assets.

Assuming the Trump administration is not intending to commit financial suicide by engaging in protracted trade wars with its three largest trading partners, this fund should rebound quickly once Wall Street is convinced that American consumers will not bear brunt of the tariffs.