The ETF, which tracks the financial component of the S&P 500, was down by about 25% year to date heading into Monday’s trading.
“This ETF provides comprehensive exposure to the U.S. financials sector, which includes banks, insurance firms, real estate companies, financial exchanges, and general finance firms. 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,” Morningstar says in a profile of the fund.
The financial ETF has been lagging the S&P 500 in November and the sector needs to stabilize before the market can make a sustainable move higher, analysts say. [Banks Drag Stock ETFs Lower]
