“Investing in the financials sector requires a strong risk tolerance and the understanding that the sector is in recovery mode and will be susceptible to setbacks if the economy falters,” said Morningstar’s Timothy Strauts in a recent analyst report on the ETF.
The cap-weighted fund is “top-heavy” and its performance is driven primarily by major money-center banks such as Citi, Bank of America, J.P. Morgan (NYSE: JPM) and Wells Fargo (NYSE: WFC), the analyst said.
Financial Select Sector SPDR Fund
