Select Sector SPDR Fund - Financial (XLF)

QUOTE AND NEWS
Market Intelligence Center  Sep 25  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Financial Select Sector SPDR (XLF) today after it closed at $23.46 on Wednesday. For more...
Market Intelligence Center  Sep 18  Comment 
MarketIntelligenceCenter.com's patented algorithms have chosen the Jun. '15 $23.00 call for a couple of hedged-trading ideas on Financial Select Sector SPDR (XLF). A traditional covered call on Financial Select Sector SPDR yields 3.84% (5.11%...
Forbes  Sep 17  Comment 
In afternoon trading on Wednesday, Financial stocks are the best performing sector, higher by 0.7%. Within that group, Charles Schwab (NYSE: SCHW) and E*trade Financial (NASD: ETFC) are two large stocks leading the way, showing a gain of 2.5% and...
Market Intelligence Center  Sep 9  Comment 
After closing Monday at $23.47, Financial Select Sector SPDR (XLF) presents an attractive opportunity to get a 4.03% return in just 283 days, which is an annualized return of 5.19% (for comparison purposes only). To enter this trade, sell one Jun....
Forbes  Sep 4  Comment 
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Financial Select Sector SPDR Fund (XLF), which added 14,700,000 units, or a 1.9% increase week over week.  Among...
Forbes  Aug 28  Comment 
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Financial Select Sector SPDR Fund (XLF), which added 26,850,000 units, or a 3.5% increase week over week.  Among...
Forbes  Aug 21  Comment 
In afternoon trading on Thursday, Financial stocks are the best performing sector, up 0.6%. Within that group, Bank of America (NYSE: BAC) and SunTrust Banks (NYSE: STI) are two of the day's stand-outs, showing a gain of 3.1% and 2.5%,...
Forbes  Aug 20  Comment 
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Financial Select Sector SPDR Fund (XLF), which added 13,650,000 units, or a 1.8% increase week over week.  Among...
Forbes  Aug 19  Comment 
The worst performing sector as of midday Tuesday is the Financial sector, higher by 0.2%. Within the sector, Intercontinental Exchange (NYSE: ICE) and American Tower (NYSE: AMT) are two of the day's laggards, showing a loss of 2.3% and 0.8%,...
Forbes  Aug 12  Comment 
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Financial Select Sector SPDR Fund (XLF), where 29,100,000 units were destroyed, or a 3.7% decrease week over...




 


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]

Image:Xlfholdings.jpg

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%.

References

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