Financial Select Story

Financial Select Sector SPDR ETF -- USA Etf  

USD 28.93  0.19  0.65%

Macroaxis News
By Nathan Young

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.

ETF Series, the Financial Sector Is Easily Accessible Thanks to ETF Products

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.

Story Momentum

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 9.22% .

Similar stores for Financial Select

3 days ago at 
Financial Select Sector SPDR ETF Rises 1.45 percent for Feb 21
More notable recent Financial Select Sector SPDR ETF news were published by which released Financial Select Sector SPDR Fund Experiences Big Outflow on February 12, 2018, also with their article ... ETF Preview ETFs, Futures Lower as Street Looks Ahead to Fed Meeting Minutes - Nasdaq Trustcore Financial Services LLC Purchases Shares of 2327 Energy Select Sector ... - The Ledger Gazette
over a month ago at 
Librating Stock- Financial Select Sector SPDR ETF a Exchange Traded ...
Thestreet News
U.S. stock index futures pointed to a mostly lower open Tuesday as shares of Apple dropped in premarket trading. The iPhone maker stock fell more than 2.5 percent in premarket trading following a report from Taiwan Economic Daily, citing ...
over three months ago at 
Prudential Financial Inc. Reduces Position in Financial Select Sector SPDR ETF ...
Financial Select Sector SPDR ETF logo Prudential Financial Inc. reduced its position in shares of Financial Select Sector SPDR ETF by 0.5 percent during the third quarter, according to the company in its most recent 13F filing with the SEC. Financial Select Sector SPDR Fund Assets Now 0.47 percent After 133.03M Net Flows - WeeklyHub Bank Hapoalim BM Has 14.06 Million Stake in Financial Select Sector SPDR ETF ... - Dispatch Tribunal

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Financial Select is rated third in three year return as compared to similar ETFs. Tree Year Return shows the total annualized return generated from holding a fund or ETFs for the last three years. The return measure includes capital appreciation, losses, dividends paid, and all capital gains distributions. This return indicator is considered by many investors to be solid measures of fund mid-term performance.