Some good news for XLF and friends is that the financial services sector is widely regarded as perhaps the only sector in the U.S. that is attractively valued relative to the broader market and its own long-term averages. The financial sector valuations still look relatively cheap, compared to the broader market. The sector’s valuations are still about 25% below the average since the early 1990s.
XLF has fourth-quarter inflows of $3.4 billion, good for the fifth-best total among all ETFs.
For more information on the financial sector, visit our financial category.