Although the financial sector has been one of the worst performers for the year, things are looking up lately as financial exchange traded funds (ETFs) have seen a recent boost.
One of the dominant financial ETFs is the Financial Select Sector SPDR Fund (XLF). Two of its top 10 holdings, Citigroup (C) and Wachovia (WB), just released excellent earnings reports. Considering Citigroup is XLF’s largest holding at 9.1%, and Wachovia is its sixth largest at 3.5%, the latest report cards could push up XLF’s performance.
Like other ETF sectors, the financial area is expanding rapidly. Currently, there are 15 financial ETFs and 11 financial sub-sector ETFs. As earnings reports roll out, keep an eye on these ETFs.
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.