Select Sector SPDR Fund - Financial (XLF)

QUOTE AND NEWS
SeekingAlpha  Jul 10  Comment 
By J.J. McGrath: The Financial exchange traded fund (XLF), in the first half of this year, ranked No. 7 by returns among the Select Sector SPDRs that cleave the S&P 500 into nine fragments. On an adjusted daily share price basis, XLF progressed to...
Forbes  Jul 8  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 10,450,000 units were destroyed, or a 1.3% decrease week over...
Forbes  Jun 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 16,200,000 units were destroyed, or a 1.9% decrease week over...
Forbes  Jun 26  Comment 
In afternoon trading on Thursday, Financial stocks are the worst performing sector, showing a 0.4% loss. Within that group, Morgan Stanley (NYSE: MS) and Prologis (NYSE: PLD) are two large stocks that are lagging, showing a loss of 1.5% and 1.5%,...
SeekingAlpha  Jun 19  Comment 
By Matthew Smith: With the latest comments from Federal Reserve Chairman Janet Yellen it appears that regulators are comfortable with a higher than normal inflation rate as a trade-off while trying to increase the growth rate in the economy. This...
Forbes  Jun 17  Comment 
he best performing sector as of midday Tuesday is the Financial sector, up 1.0%. Within that group, E*trade Financial (NASD: ETFC) and Charles Schwab (NYSE: SCHW) are two large stocks leading the way, showing a gain of 7.2% and 5.6%, respectively....
Forbes  Jun 16  Comment 
Looking at the sectors faring worst as of midday Monday, shares of Financial companies are underperforming other sectors, showing a 0.3% loss. Within the sector, KeyCorp (NYSE: KEY) and Zions Bancorporation (NASD: ZION) are two of the day's...
Forbes  Jun 12  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 20,550,000 units, or a 2.5% increase week over week.  Among...
Forbes  Jun 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 22,750,000 units, or a 2.9% increase week over week.  Among...
Market Intelligence Center  Jun 4  Comment 
Financial Select Sector SPDR (XLF) presents a trading opportunity that offers a 4.51% return in just 289 days. A covered call on Financial Select Sector SPDR at the $22.00 level expiring on Mar. '15 offers an assigned return rate of 4.51% or...




 


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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