Factoring in Financial Sector ETFs
July 7th at 1:10am by Tom Lydon
Exchange traded funds (ETFs) come in different flavors and sizes, even within sectors. The financial sector spans across the globe, country, and even businesses, including banks, brokers, asset managers and insurance companies. Seeking Alpha offers a list of financial sector ETFs available for investors.
As with any sector, there are specific factors that can affect the companies which make up the ETF. For example, interest rate changes or the recent subprime mortgage problems can play a role in financial companies. These ETFs have not been the best performers for the year. Financial Select Sector SPDRs (XLF) is up only 0.3% year-to-date. Top holdings include Citibank (C), Bank of America (BAC) and American International Group (AIG). iShares Dow Jones U.S. Regional Banks (IAT) is down 2.8% this year; holdings include U.S. Bancorp (USB), Washington Mutual (WM) and Bank of New York(BK). Global financial companies have done better than the domestic, take iShares S&P Global Financials (IXG), up 2.9%.
