Financial Select Sector SPDR Fund (XLF) seeks investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Financial Select Sector Index. The fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: diversified financial services; insurance; banks; capital markets; mortgage real estate investment trusts (“REITs”); consumer finance; and thrifts and mortgage finance. The fund is non-diversified.

finviz dynamic chart for XLF

Fund Overview

  • Net Assets 41.18B
  • YTD Daily Total Return 28.71%
  • Yield 1.63%

Fund Operations

  • Annual Report Expense Ratio (net) 0.12%
  • Holdings Turnover 4.00%
  • Total Net Assets 123,268.30

The Financial Select Sector SPDR Fund is the largest financial ETF by assets under management, at $41.1 billion. It is also one of the most diversified ways to invest in the financial sector, though that means

Pure-play banks make up just 44% of this fund, with the lion’s share coming from the Big Four banks – JPMorgan, Citigroup, Bank of America (BAC) and Wells Fargo (WFC), and their combined 27.42% weight. But while JPMorgan is a massive overweight at 11.57% of assets, it’s not the biggest – that title goes to Warren Buffett’s Berkshire Hathaway (BRK.B, 12.92%), making up nearly all of XLF’s “Diversified Financial Services” allocation. The rest of the fund is invested across capital markets and consumer finance companies.

Top 10 Holdings (54.29% of Total Assets)

  • Berkshire Hathaway Inc Class B(BRK.B) 12.92%
  • JPMorgan Chase & Co(JPM) 11.57%
  • Bank of America Corp(BAC) 7.59%
  • Wells Fargo & Co(WFC) 4.59%
  • Citigroup Inc(C) 3.67%
  • Morgan Stanley(MS) 3.05%
  • Goldman Sachs Group Inc(GS) 2.96%
  • BlackRock Inc(BLK) 2.87%
  • Charles Schwab Corp(SCHW) 2.60%
  • American Express Co(AXP) 2.47%

In conclusion, the Financial Select Sector SPDR Fund is best for long term investors who are interested only owning stocks that are in financial sector.

2 Comments to “Best Financial ETF (XLF)”

Post Comment