Select Sector SPDR Fund - Financial (XLF)

QUOTE AND NEWS
Forbes  Nov 19  Comment 
Donald Trump’s win has done something extraordinary to the financial sector. Just look at this one-month chart for the Financial Select Sector SPDR ETF (XLF): Banks Love Trump This is unexpected on two levels. First, of course, Trump’s very...
Forbes  Nov 18  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 238,700,000 units, or a 35.5% increase week over week....
Benzinga  Nov 7  Comment 
Among sector exchange-traded funds, the Financial Select Sector SPDR Fund (NYSE: XLF) gets plenty of notoriety. Those are the breaks for the largest ETF tracking the financial services sector, which is now the third-largest sector weight in the...
Forbes  Oct 14  Comment 
The best performing sector as of midday Friday is the Financial sector, higher by 0.4%. Within the sector, Goldman Sachs Group Incorporated (NYSE: GS) and Intercontinental Exchange Incorporated (NYSE: ICE) are two large stocks leading the way,...
Forbes  Oct 11  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 9,950,000 units, or a 1.6% increase week over week.  Among...
Benzinga  Oct 7  Comment 
One of the more interesting events, at least for indexing nerds, recently occurred when the separation of real estate stocks from the financial services sector sparked the creation of an eleventh S&P 500 sector. So these days the Financial...
Forbes  Oct 4  Comment 
Looking at the sectors faring best as of midday Tuesday, shares of Financial companies are outperforming other sectors, losing just 0.2%. Within the sector, Hartford Financial Services Group Inc. (NYSE: HIG) and Northern Trust Corp. (NASD: NTRS)...
Forbes  Sep 22  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 25,700,000 units were destroyed, or a 4.1% decrease week over...
Forbes  Sep 21  Comment 
In afternoon trading on Wednesday, Financial stocks are the worst performing sector, up 0.2%. Within that group, Navient Corp (NASD: NAVI) and Wells Fargo & Co. (NYSE: WFC) are two large stocks that are lagging, showing a loss of 2.8% and 2.2%,...
Benzinga  Sep 19  Comment 
The Financial Select Sector SPDR Fund (NYSE: XLF) is a bit leaner on Monday following a transfer of its real estate assets into the Real Estate Select Sector SPDR Fund (The) (NYSE: XLRE). Back in June, the S&P Dow Jones Indices (SPDJI) announced...




 


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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