J.P. Morgan Chase and Citigroup are XLF’s third- and fifth-largest holdings, respectively, accounting for a combined 13.2% of the ETF’s weight. Although XLF closed slightly lower Tuesday, the ETF still resides at its highest levels since early in the second quarter of 2008.
Confirming the strength in the financial services sector are broker-dealers stocks. Up 4.1%, the iShares US Broker-Dealers ETF (NYSEArca: IAI) recently notched a breakout of its own and like XLF, IAI now trades at its highest levels in over six and a half years. [Bank on Broker-Dealers ETFs]
Over the past month, Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Charles Schwab (NYSE: SCHW), Stifel Financial (NYSE: SF) and TD Ameritrade (NasdaqGS: AMTD), a combined 34% of IAI’s weight, are up an average of 5%.
Financial Select Sector SPDR
