Previously in the ETF article series, we have talked about two of the larger ETF’s that focus on index tracking. Those are the ticker SPY and QQQ, but now we dive a little bit deeper and take a look at sector exchange traded funds. Sectors that many of us are familiar with include financials, telecommunications, and discretionary spending. Certainly there are more but these are just a few. For this instance, we are going to look at the financial sector using the SPDR fund product, XLF. The ticker XLF is a popular and widely used ETF that tracks the financials sector.
Names that are in the financials space include Wells Fargo, JP Morgan, and Citigroup. Analyzing a sector ETF takes a different spin from analyzing an index ETF. Typically in an index ETF, you want to look at the holdings to analyze how much weight they may or may not have towards certain companies or sectors. With a sector specific product, you want to analyze the companies that are in it.
For example, with XLF, as of October 5th the top holding was Berkshire Hathaway Inc. Class B. This by itself may not have much significance unless you dislike Berkshire Hathaway. The significance comes into play when you compare the holdings against the index holdings. You want the numbers to be very similar because the goal is to track the index step for step. Looking at the beta of the ETF should give you solid indication on how it tracks.
When looking at sector specific ETF products, you begin to get into the territory of less liquid products and some smaller funds with low assets under management. This does not necessarily mean that the product is in danger of closing, but you have to understand what the ETF’s goal is specifically and that will tell you how to utilize it. XLF is a solid product that is highly traded, removing the risk of liquidity almost one hundred percent.
Financials are a very cyclical sector and are sensitive to many local and global factors. Understand what those factors are and learn how to integrate it into your analysis of potential investments. Another benefit of a sector ETF is you can gain exposure to a sector while limiting the company specific risk. If Wells Fargo suddenly closes their doors, the ETF will be negatively impacted but it is better than holding Wells Fargo stock on its own.
XLF and other sector exchange traded funds are a very useful way to diversify your portfolio and capture swing in certain market sectors. In the next article of the ETF series, we’ll take a look at the retail space and how an ETF could limit company specific risk while allowing you to potentially profit on the rebound.
This article from Macroaxis published on 06 of October contributed to the next trading period closing price depreciation.The trading price change to the next next day price was 0.38% . The overall trading delta when the story was published to current price is 8.96% .
The notes are designed for investors who seek a Contingent Interest Payment with respect to each Review Date for which the closing value of each of the Financial Select Sector SPDR Fund, the Russell 2000 Index and the SandP 500 Index, which we refer ...
Seeking Alpha - Mar 18, 2018 ... financial industries. Anyway, I think systemic risk is more important than market valuation to manage a portfolio. Since last month PE has improved in Real Estate Services and deteriorated in Equity REITs, ThriftsMortgage.
KL Daily - Mar 10, 2018 More notable recent Financial Select Sector SPDR ETF news were published by Nasdaq.com which released Financial Select Sector SPDR Fund Experiences Big Outflow on February 12, 2018, also Nasdaq.com with their article What Happened ... Vestpro Financial Partners Inc. dba CPF Texas Buys Shares of 40320 Materials ... - The Ledger Gazette Materials Select Sector SPDR Shares Sold by Aviance Capital Management LLC - StockNewsTimes
Nasdaq - Feb 23, 2018 Benchmarks turned in mixed performances on Thursday even as jobless claims hit a near 45-year low. Both the Dow and the SandP 500 ended their two-day run of losses to finally eke out gains.
The Ledger Gazette - Feb 17, 2018 Financial Select Sector SPDR Fund logo Investors sold shares of Financial Select Sector SPDR Fund on strength during trading on Thursday. Dow Chemical Co. DE Sells 11887 Shares of Energy Select Sector SPDR - StockNewsTimes Energy Select Sector SPDR Shares Bought by Keybank National Association OH - Dispatch Tribunal
The Lincolnian Online - Feb 13, 2018 Financial Select Sector SPDR Fund logo Financial Select Sector SPDR Fund was the recipient of a large drop in short interest in January. Stack Financial Management Inc Takes 465000 Position in Technology Select ... - StockNewsTimes First Merchants Corp Buys 3398 Shares of Materials Select Sector SPDR ... - The Ledger Gazette
The Select Financial Sector SPDRs was down 2.8. Direxion Daily Financial Bull 3X shares was down 6.9 percent and its bearish counterpart Direxion Daily Financial Bear 3X shares was up 6.8. Willis Towers Watson Public Company was ...
Financial services stocks and the related exchange traded funds tumbled last week. The Financial Select Sector SPDR , the largest ETF devoted to the sector, and the bank-specific SPDR SandP Bank ETF fell 2.7 percent and 1.1 percent ...
Financial Select Sector SPDR Fund logo Investors bought shares of Financial Select Sector SPDR Fund on weakness during trading hours on Thursday. The Net Inflows Of Financial Select Sector SPDR ETF Point to -448.90M ... - BZ Weekly Investors Sell Shares of Financial Select Sector SPDR Fund on Strength - Dispatch Tribunal
Sei Investments Co. increased its position in shares of Materials Select Sector SPDR ETF by 181.6 percent during the second quarter. Mid-Day ETF Update ETFs, Stocks Mostly Lower as Threat of Government Shutdown ... - Nasdaq Swarthmore Group Inc Buys SPDR SandP Regional Banking, SPDR Select Sector Fund ... - GuruFocus.com
The Ledger Gazette - Nov 25, 2017 Financial Select Sector SPDR ETF logo ACG Wealth lessened its stake in Financial Select Sector SPDR ETF by 2.6 percent in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission ... Financial Select Sector SPDR ETF Holdings Trimmed by Essex Financial ... - TrueBlueTribune Bessemer Group Inc. Cuts Stake in Financial Select Sector SPDR ETF - Week Herald
The financial sector is set to kick off the third-quarter earnings season over the coming days, and from the looks of it, investors are more than ready for it. Financial Select Sector SPDR Fund Saw -60.60M Redemptions Due To -0.21 percent AUM ... - BZ Weekly Albion Financial Group UT Boosts Stake in Real Estate Select Sector SPDR Fund ... - The Ledger Gazette
Financial Select is rated below average in price to book as compared to similar ETFs. Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.