The broad changes to the financial regulatory landscape has weighed on the sector and related ETFs. For isntance, XLF’s holdings include BAC 5.7%, C 5.3%, GS 2.6%, JPM 7.9%, MS 1.6% and WFC 8.8%, which make up about 31.9% of the overall portfolio.
An “issue that remains a major headwind for U.S. banks is recurring regulation and litigation expenses, which continue to hit banks’ income statements,” according to Morningstar analyst Robert Goldsborough.
Financial Select Sector SPDR
For more information on the financials sector, visit our financial category.
Max Chen contributed to this article.