Some investors are not waiting around for XLF’s rebound to materialize as highlighted by $1.1 billion of outflows from the ETF this year. That is by far the worst flows data of the nine sector SPDR ETFs.
However, the case for patient investors being long XLF is not without merit. The financial services sector is one of just two expected to deliver double-digit dividend growth this year and the sector is inexpensive compared to the S&P 500. XLF’s P/E of 14.5 is below the 17 P/E on the benchmark U.S. index. [A Financial ETF With Momentum]
Financial Select Sector SPDR
ETF Trends editorial team contributed to this post.