Fed Most Likely to Hike Rates After 3 Years: ETFs to Win/Lose

A likely Federal Reserve rate hike is expected to create divergent ETF performance, potentially supporting value, technology and energy exposures while pressuring homebuilders, leisure and small-cap funds. Higher rates pose particular headwinds for rate-sensitive housing and consumer-discretionary segments, while investors may find selective opportunities in sectors better positioned for a tightening cycle.