Financial Select Sector SPDR Fund
Provides exposure to companies in the diversified financial services, insurance, banks, and capital markets industries.
Why This Week?
XLF is the benchmark for the US financial sector. Holding the heavyweights of Wall Street, XLF thrives in environments with steepening yield curves and strong economic growth. It is a classic value-tilted ETF that pays a solid dividend and acts as a cyclical counterweight to tech-heavy portfolios.
Key Metrics
Top Holdings
5 holdings shown. Weights are approximate.
Pros & Cons
Strengths
- Highly liquid and low cost (0.09%).
- Benefits from deregulation and steepening yield curves.
- Includes diversified financial giants like Berkshire Hathaway and Visa, not just retail banks.
Risks & Weaknesses
- Highly cyclical and vulnerable to economic recessions.
- Sensitive to changes in interest rates.
- High concentration in top holdings (~13% in Berkshire Hathaway).
Alternatives Comparison
| ETF | Name | TER |
|---|---|---|
| XLFThis Week | Financial Select Sector SPDR Fund | 0.09% |
| VFH | Vanguard Financials ETF | 0.10% |
| KRE | SPDR S&P Regional Banking ETF | 0.35% |
💬 Frequently Asked Questions
Want to Explore Further?
XLF launched recently, so try backtesting SMH or SOXX as semiconductor proxies, or explore our ETF database for alternatives.
Disclaimer: ETF of the Week is educational content only. It is not investment advice, a recommendation to buy or sell, or an endorsement of any fund. Past performance does not guarantee future results. Always do your own research and consult a financial advisor before investing.