Core Viewpoint - The nomination of Kevin Warsh as the next Federal Reserve Chair by Donald Trump could lead to significant benefits for certain ETFs, particularly in the financial and real estate sectors, as Warsh is expected to advocate for interest rate cuts while managing the Fed's balance sheet effectively [1][3]. Financial Sector - Warsh's background includes serving on the Fed's Board of Governors and negotiating survival plans for major financial institutions during the 2008 crisis, indicating his experience and influence in the financial sector [2]. - Lower interest rates are anticipated to boost loan demand and refinancing, which would drive revenue for banks, benefiting ETFs like the Financial Select Sector SPDR ETF (XLF) [5]. - The XLF ETF has a low expense ratio of 0.08% and is positioned for potential outperformance as the Fed eases supervisory intensity [6]. Small-Cap Stocks - Small-cap stocks, represented by the iShares Core S&P Small-Cap ETF (IJR), are highly sensitive to interest rate changes, with many relying on loans for expansion [8]. - Historical data shows that small-cap indices like the Russell 2000 have outperformed larger indices following Fed rate cuts, suggesting potential for significant gains if Warsh's policies are implemented [9]. - The IJR ETF has a low expense ratio of 0.06% and has already seen a 7.5% increase year-to-date, making it an attractive option for investors [9]. Real Estate Sector - The iShares US Real Estate ETF (IYR) is expected to benefit from lower interest rates, as real estate companies have shown resilience and can thrive in a lower rate environment [10][11]. - The IYR provides broad exposure to high-quality, large-cap REITs and has historically outperformed broader U.S. stocks following Fed easing cycles [11]. - Although the IYR has a higher expense ratio of 0.38%, its yield of 2.45% makes it a worthwhile investment for those looking to capitalize on the real estate sector [12].