Select Sector SPDR Fund - Financial (XLF)

Benzinga  Jan 9  Comment 
On CNBC's "Fast Money Halftime Report", Stephanie Link said she likes DowDuPont Inc (NYSE: DWDP). Joe Terranova is watching Lincoln National Corporation (NYSE: LNC). Pete Najarian noticed a purchase of 80,000 upside call options in Financial...
SeekingAlpha  Dec 31  Comment 
Benzinga  Oct 4  Comment 
The Financial Select Sector SPDR (NYSE: XLF), the largest exchange traded fund dedicated to the financial services sector, attempted to shake its laggard status in the third quarter, posting a solid gain of 3.7 percent. After confounding...
Benzinga  Jul 5  Comment 
The Financial Select Sector SPDR Fund (NYSE: XLF), widely viewed as one of this year's most disappointing sector exchange-traded funds, has recently shown signs of momentum. Over the past week, XLF, the largest ETF dedicated to the financial...
SeekingAlpha  Jun 9  Comment 
Benzinga  Feb 8  Comment 
The Financial Select Sector SPDR (NYSE: XLF), the largest exchange-traded fund tracking the second-largest sector weight in the S&P 500, has been on fire since Election Day, but closed slightly lower Tuesday. Upsides For XLF? Still, some data...


The Financial Select Sector SPDR Fund (NYSE:XLF) is an Exchange Traded Fund (ETF) that seeks to provide investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index. The Index includes a broad range of financial service firms including banks, brokerage houses, insurance and other diversified financial holding companies.

ETFs utilize a passive investment approach to invest in a portfolio of stocks that seek to replicate the underlying index, in this case the underlying index is the Financial Select Sector S&P 500 Index.

Fund Characteristics

  • Fund Sponsor: State Street Global Advisors
  • Inception Date: December, 1998
  • Ticker: XLF
  • Expense ratio: 0.21%

Top 10 Holdings (56.6% of total holdings)[1]

Current as of 7/19/2010

Company Index Weight
J P Morgan Chase (JPM) 9.85%
Bank of America (BAC) 8.91%
Wells Fargo (WFC) 8.69%
Berkshire Hathaway (BRK) 8.11%
Citigroup (C) 5.60%
Goldman Sachs Group (GS) 4.78%
American Express Company (AXP) 3.16%
U.S. Bancorp (USB) 2.81%
Morgan Stanley (MS) 2.20%
Bank of New York Mellon Corporation (BK) 1.98%

Holdings by Industry[2]


Industry Index Weight
Diversified Financial Services 28.3%
Insurance 22.7%
Commercial Banks 19.8%
Capital Markets 16.4%
Real Estate Investment Trusts (REITs) 7.5%
Consumer Finance 4.7%
Thrifts & Mortgage Finance 0.4%
Real Estate Management and Development 0.2%

Other ETFs in this family include:

  • XLY: Consumer Discretionary SPDR
  • XLP: Consumer Staples SPDR
  • XLE: Energy SPDR
  • XLV: Health Care SPDR
  • XLI: Industrials SPDR
  • XLB: Materials SPDR
  • XLK: Technology SPDR
  • XLU: Utilities SPDR

Investment Strategies

Sector investing is popular as various sectors of the economy may rise and fall in response to different economic factors. Some sectors will be counter-cyclical to other sectors.

Leveraged ETFs and Inverse ETFs

ETFs have become so popular that new ones are coming to market rather frequently. The latest version includes “leveraged ETFs” and “inverse ETFs.”

A leveraged ETF seeks to match some multiple of the underlying index. For example, PowerShares QQQ Trust (NASDAQ: QQQ) is an ETF that seeks daily investment results that correspond to the daily performance of the NASDAQ-100 Index. ProShares Ultra QQQ (NYSE: QLD) seeks to double the performance of the QQQ.

An inverse ETF seeks to match the performance of an index, but in the inverse direction. This is normally accomplished by short-selling either the index or the underlying assets. For example, ProShares UltraShort QQQ (NYSE: QID) seeks to double the performance of the NASDAQ-100 Index in the inverse direction. If the NASDAQ-100 is up 5% the ProShares UltraShort QQQ should be down by 10%.


  1. Financials SPDR - XLF
  2. Investment Summary: Financial Sector SPDR
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