ETF Spotlight: Financial Select Sector SPDR Fund (XLF) | ETF Trends

ETF Spotlight on Financial Select Sector SPDR Fund (NYSEArca: XLF), part of a weekly series.

Assets: $7.4 billion

Holdings: Top holdings include: JPMorgan Chase (NYSE: JPM) & Co. 9.2%, Wells Fargo & Co. (NYSE: WFC) 8.0%, Berkshire Hathaway Inc. (NYSE: BRK-B) 7.3%, Citigroup (NYSE: C) 6.4% and Bank of America Corp  (NYSE: BAC) 6.4%.

Objective: The Financial Select Sector SPDR Fund tries to reflect the performance of the Financial Select Sector Index.

What You Should Know

  • The fund has an expense ratio of 0.20%.
  • The fund has 82 holdings.
  • Industry allocations include: Diversified Financial Services 25.01%, Insurance 24.77%, Commercial Banks 17.62%, Capital Markets 15.60%, Real Estate Investment Trusts (REITs) 10.56%, Consumer Finance 5.40%, Thrifts & Mortgage Finance 0.52% and Real Estate Management & Development 0.41%.

The Latest News

  • The stock markets, led by the financial sector, took a turn for the worst as economic data revealed lower-than-expected private-sector job growth and a drop in the PMI.
  • The low employment figures also could translate to lower consumer lending, greater default rates on mortgages and higher delinquencies on credit cards.
  • However, analysts believe that the sector is supported by stronger balance sheets as compared to 2007.

For past ETF Spotlights, visit our ETF Spotlight category.

Max Chen contributed to this article.

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.