Select Sector SPDR Fund - Financial (XLF)

QUOTE AND NEWS
Forbes  Dec 10  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 18,300,000 units, or a 2.3% increase week over week.  Among...
Forbes  Dec 5  Comment 
Looking at the sectors faring best as of midday Friday, shares of Financial companies are outperforming other sectors, up 0.8%. Within that group, Zions Bancorporation (NASD: ZION) and Charles Schwab (NYSE: SCHW) are two large stocks leading the...
Forbes  Nov 14  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 9,600,000 units were destroyed, or a 1.3% decrease week over...
Forbes  Nov 4  Comment 
Looking at the sectors faring best as of midday Tuesday, shares of Financial companies are outperforming other sectors, higher by 0.1%. Within that group, Intercontinental Exchange (NYSE: ICE) and Marsh & McLennan Companies (NYSE: MMC) are two of...
Forbes  Oct 30  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 19,500,000 units were destroyed, or a 2.5% decrease week over...
Forbes  Oct 29  Comment 
Looking at the sectors faring best as of midday Wednesday, shares of Financial companies are outperforming other sectors, losing just 0.1%. Within that group, Aetna (NYSE: AET) and Ameriprise Financial (NYSE: AMP) are two large stocks leading the...
Market Intelligence Center  Oct 29  Comment 
Financial Select Sector SPDR (XLF) is an excellent choice for either a diagonal spread or a covered call expiring in Jun. '15 at the $23.00 level according to MarketIntelligenceCenter.com's patented algorithms. A covered call on Financial Select...
Market Intelligence Center  Oct 23  Comment 
After closing Wednesday at $22.66, Financial Select Sector SPDR (XLF) presents an attractive opportunity to get a 4.41% return in just 239 days, which is an annualized return of 6.74% (for comparison purposes only). To enter this trade, sell one...
Forbes  Oct 15  Comment 
Looking at the sectors faring worst as of midday Wednesday, shares of Financial companies are underperforming other sectors, showing a 2.9% loss. Within that group, KeyCorp (NYSE: KEY) and Hudson City Bancorp (NASD: HCBK) are two large stocks that...




 


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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