Regarding XLF, which is heavy on investment banks and insurance firms in addition to money center banks, “there is little else on the chart to suggest this ETF has peaked. Relative performance vs. the market is rising. Trendlines and moving averages are still intact. Only volume indicators hint at anything other than a strong sector,” according to Barron’s. XLF is up 3.5% in the past month and is the fourth-best of the nine sector SPDR ETFs on a year-to-date basis. [Rotating Through Strong Sector ETFs]
The $2.6 billion SPDR S&P Bank ETF (NYSEArca: KBE) is one to keep an eye, notes Barron’s. Home to 56 stocks, KBE is an equal weight mix of large money center banks and regional banks. KBE saw a bearish reversal on high volume last Friday, according to Barron’s, and although the ETF is up 6% in the past 90 days, last Friday’s action, could be a sign the next few days are critical to the fund’s near-term fortunes.
SPDR S&P Bank ETF
ETF Trends editorial team contributed to this post.