What happens when Fed Chairman Ben Bernanke says rate hikes might slow down?  Financial exchange trade funds reach new highs.  Murray Coleman of Investors Business Daily called to talk about the financial ETFs.  As I mentioned, the key is to look at some of the components in the ETFs, specifically Financial Select Sector SPDR (XLF).  Earnings have been strong for most of its banking and money management stocks, which should help drive more future growth.

Other financial ETFs include iShares Dow Jones U.S. Financial Sector (IYF), Regional Bank HOLDRS (RKH) and Vanguard Financials Vipers (VFH).  Below is a one-year chart of XLF.

Xlf

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.