Earnings season is kicking off, and financial sector exchange traded funds are in the limelight this week as major banks reveal second quarter results.
On Tuesday, JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) will report earnings, according to CNBC.
On Wednesday, Bank of America (NYSE: BAC) will reveal results.
On Thursday, Citigroup (NYSE: C) and Goldman Sachs (NYSE: GS) will announce second quarter earnings.
ETF investors can also track the financial space through broad sector ETFs, including the iShares U.S. Financials ETF (NYSEArca: IYF), Financial Select Sector SPDR (NYSEArca: XLF) and Vanguard Financials ETF (NYSEArca: VFH). These broad market capitalization-weighted ETFs include heavy exposure to the major banks.
For instance, XLF’s top holdings include WFC 8.6%, JPM 8.1%, BAC 5.7%, C 5.4% and GS 2.7%. IYF includes WFC 6.4%, JPM 6.1%, BAC 4.3%, C 4.1% and GS 2.0%. VFH holds WFC 6.9%, JPM 6.2%, BAC 4.4%, C 4.1% and GS 2.0%.
The financial sector has been the best performing group over the past three months. After the recent selling pressure, some see the sector as a rare buying opportunity. [Financial ETFs Are the Place to Be]