President Trump’s second term hasn’t exactly been calm for Wall Street. One week, tariffs are slapped on China, Mexico, or Europe. The next week, they’re paused, rolled back, or delayed.
It’s been a back-and-forth dance that traders now call the “TACO theory”: Trump Always Chickens Out. It’s quite a funny name, but the uncertainty is real.
Apparel brands like Nike (NKE) and Lululemon (LULU) have been hit hard. Automakers such as Ford (F) and GM are struggling with higher costs and supply chain delays. The result is a market that feels like a rollercoaster with no seatbelt.
So where should investors hide when tariffs start flying again? Some sectors, especially those less tied to imported goods, are holding up better. That’s where a few smart ETFs come in.
ETF #1: Simplify NEXT Intangible Core (NXTI)
Old-school manufacturing is super vulnerable to tariffs. But what about companies whose value comes from ideas instead of factories? That’s the angle here. NXTI invests in businesses built on software, patents, data, and brands, basically, intellectual property that can’t be taxed at the border.
It’s like owning the economy’s “brains” instead of its “bodies.” NXTI charges a 0.25% expense ratio, making it a cheap way to bet on innovation-driven growth.
ETF #2: VanEck Durable High Dividend (DURA)
When things get messy, strong companies with healthy balance sheets usually survive best. That’s exactly what DURA targets, big U.S. names with solid dividends and fair valuations. For example, consider Johnson & Johnson (JNJ), PepsiCo (PEP), and ExxonMobil (XOM).
Plus, it pays a 3.6% yield, which is a nice cushion while markets freak out. With a 0.30% expense ratio, DURA is about stability and income, not chasing risky tariff-sensitive stocks.
ETF #3: Invesco CurrencyShares Swiss Franc Trust (FXF)
Sometimes the best move isn’t in stocks at all. FXF lets investors park money in the Swiss franc, a classic safe-haven currency. So far in 2025, it’s up 12.9% as traders seek safety.
So why Switzerland in the first place. The country is known for its neutral politics, strong banks, and central bankers who stay disciplined. With a 0.40% expense ratio, FXF acts a lot like gold, only it’s backed by currency instead of metal.
The Bottom Line
Tariffs create chaos. Some sectors get crushed, some survive, and a few even thrive. By mixing ETFs like NXTI, DURA, and FXF, investors can hedge against uncertainty and maybe even profit from it.
When policy shifts feel unpredictable, portfolios should do the opposite by staying steady, staying diversified, and staying prepared for whatever headline shows up next.
