XLF

The Financial Select Sector SPDR (NYSEArca: XLF) is off nearly 10% over the past month, putting the largest financial services dangerously close to correction territory while making it one of the worst-performing sector SPDR exchange traded funds to start 2016. Contributing to the weakness in the bank sector, traders may have been unwinding bullish bets […]

Despite an upbeat earnings season and low exposure to the current round of economic risks, U.S. bank stocks and sector-related exchange traded funds have underperformed, potentially opening up a buying opportunity for value investors. Year-to-date, the SPDR S&P Regional Banking ETF (NYSEArca: KRE) fell 12.6%, iShares U.S. Regional Banks ETF (NYSEArca: IAT) dropped 10.9% and […]

Financial services stocks and exchange traded funds, such as the Financial Select Sector SPDR (NYSEArca: XLF), have struggled to start 2016, a disappointing theme considering the Federal Reserve raised interest rates last month and is expected to do so again at least a couple of times this year. Year-to-date, XLF, the largest financial services ETF […]

The equities market and stock exchange traded funds retreated in a violent start to a new year. As volatility dissipates, exchange traded fund investors should consider areas where selling may have been overdone. “In our opinion, much of the recent selling has been overdone and, as such, has created some bargains,” Russ Koesterich, Global Chief […]

As the equities market experienced its worst start to a new year, exchange traded fund investors fled growth sectors and jumped into defensive stocks, along with betting on a valuation play. Investors’ eyes are on the tech space this week amid a spate of fourth quarter earnings results, but the technology sector was among the […]

Perhaps it is a result of increased market volatility to start the new year, but some sector exchange traded funds have recently seen options on those ETFs get pricey and some traditionally defensive sector ETFs are home to some of the most expensive options contracts. The Utilities Select Sector SPDR (NYSEArca: XLU), the largest utilities […]

Financial services stocks and exchange traded funds, such as the Financial Select Sector SPDR (NYSEArca: XLF), have struggled to start 2016, a disappointing theme considering the Federal Reserve raised interest rates last month and is expected to do so again at least a couple of times this year. Previously, the Federal Reserve’s decision to hold […]

The recent selling has put the markets on edge. Nevertheless, investors can still find ways to navigate the markets. ETF Trends publisher Tom Lydon appeared on CNBC to discuss opportunities in the financial sector and hedging against volatility with long-term Treasuries. Click on the video below to see the full interview. The opinions and forecasts […]

Financial services stocks and exchange traded funds, such as the Financial Select Sector SPDR (NYSEArca: XLF), have struggled to start 2016, but at least one well-known analyst views the sector as a safe-haven bet. With higher interest rates in place, financial services ETFs entered 2016 as potentially important tells regarding what investors should expect from […]

The Federal Reserve raising interest rates for the first time in nearly a decade last month and expectations for several more rate hikes this year are viewed as positive catalysts for many financial services stocks and exchange traded funds, but the near-term outlook for the sector is clouded due to a flattening yield curve. Prime […]

Many expected this to be the year that active mutual fund managers would be able to pick and choose their battles and generate alpha for investors. However, active managers continued to underperform benchmarks, bolstering the case for low-cost, passive index-based exchange traded funds. According to Goldman Sachs analysis, only 27% of large-cap core funds beat […]

Aided by anticipation of and subsequent realization of higher interest rates courtesy of the Federal Reserve, financial services stocks and the corresponding exchange traded funds have been solid fourth-quarter performers. For example, the Financial Select Sector SPDR (NYSEArca: XLF), the largest financial services ETF, is up nearly 6% in the current quarter. Earlier this month, […]

With the Federal Reserve beginning interest rate normalization, major banks are already jumping on the opportunity to increase prime rates, bolstering their profit margins and potentially supporting financial sector exchange traded funds. On Wednesday, banks including Wells Fargo & Co. (NYSE: WFC), JPMorgan Chase & Co (NYSE: JPM) and Bank of American Corp. (NYSE: BAC) […]

With the Federal Reserve itching to begin interest rate normalization, equity investors can also try to capitalize on a rising rate environment through financial sector-related exchange traded funds. The futures market is pricing in a 81% chance the Federal Open Market Committee will announce a rate hike after its December 16 meeting, reports Jeff Cox […]

The Financial Select Sector SPDR (NYSEArca: XLF) and rival financial services exchange traded funds are receiving increased positive attention as advisors and investors come to grips with the fact that the Federal Reserve is likely to raise interest rates next month. However, there is another important reason to consider bank stocks and ETFs: Rising profitability. […]

Last Friday utilities stocks plummeted 3.5% while broader stock market was little changed This was a good example that utilities stocks act as a combination of stocks and bonds. Factor and correlation analyses confirm this notion. An investor may want to attribute XLU partially to equities and fixed income for performance analysis purposes. I am long […]

The Financial Select Sector SPDR (NYSEArca: XLF) and rival financial services exchange traded funds are receiving increased positive attention as advisors and investors come to grips with the fact that the Federal Reserve is likely to raise interest rates next month. Previously, the Federal Reserve’s decision to hold off on an interest rate hike, ongoing […]

The Financial Services Select Sector SPDR (NYSEArca: XLF) is up more than 2% over the past month after gaining 1% last Friday on volume that was more than 50% above the daily average as traders increase wagers that the October jobs report will prompt the Federal reserve to boost interest rates following its December meeting. […]

Few if any sector exchange traded are as levered to Federal Reserve action as are financial services ETFs. So even though the Fed did not raise interest rates this month, the Financial Services Select Sector SPDR (NYSEArca: XLF) and rival funds could be worth examining because many traders believe a December rate hike is certainly […]

Investors interested in positioning their portfolios ahead of changes to major market trends may target specific market segments with sector-specific exchange traded funds. For instance, on the recent webcast, How Well Do Your Know Your Sectors?, David Mazza, V.P. and Head of Research at State Street Global Advisor, pointed out that the utilities sector was […]

As analysts grow more pessimistic about third quarter earnings results, banks could surprise the markets this week and potentially lift financial sector exchange traded funds. The five largest U.S. banks by market cap are due to report third quarter results this week, with JPMorgan (NYSE: JPM) set to kick things off Tuesday, followed by Goldman […]

State Street Global Advisors has expanded its line of sector exchange traded funds to include two new funds that track financial services and real estate investment trusts, along with cutting the fees on the whole Select Sector SPDR suite. The Financial services Select Sector SPDR Fund (NYSEArca: XLFS) and the Real Estate Select Sector SPDR […]

The Federal Reserve’s decision to not raise interest rates last month was seen as a blow to financial services ETFs, such as the Financial Services Select Sector SPDR (NYSEArca: XLF), but that does not mean the stocks held by XLF and rival financial services ETFs are not churning out impressive profits. One point of attraction […]

Ahead of the third quarters earnings season, some investors are hedging bets on financial sector stocks and exchange traded funds, hinting at potential weakness in the area as banks underperformed through the near-zero interest rate environment. For instance, one large trader placed a bearish bet against the Financial Select Sector SPDR (NYSEArca: XLF) on Thursday, […]

The Financial Services Select Sector SPDR (NYSEArca: XLF), the largest financial services exchange traded fund, has fallen nearly 3% over the past week and the Federal Reserve’s refusal to raise interest is almost universally cited as the reason why bank stocks and ETFs are struggling. Until last month, data suggested traders had been betting the […]

The Federal Reserve’s decision to not raise interest rates last week was seen as a blow to financial services ETFs, such as the Financial Services Select Sector SPDR (NYSEArca: XLF), but some analysts believe there is more to the financial services sector story than just interest rates. Until last month, data suggested traders had been […]

Few sector exchange traded funds were hoping for the Federal Reserve to raise interest rates last week the way financial services funds were. Financial services ETFs, such as the Financial Services Select Sector SPDR (NYSEArca: XLF), the largest financial services ETF, were believed to be prime beneficiaries of the Fed’s exit from its zero interest […]

Market observers and participants remain torn over whether the Federal Reserve will raise interest rates at its next meeting later this month. Some sectors and the corresponding exchange traded funds are really hoping the Fed decides to boost rates, namely the financial services sector. Until last month, data suggested traders had been betting the Fed […]

Based on the recent bout of volatility last week, State Street reached out to advisors to help explain what happened in the market and exchange traded funds. Via conference call, David Mazza, Head of Research for SPDR ETFs and SSGA Funds, led a discussion on what occurred last week during the market correction and potential […]