ETF Spotlight: Financial Select Sector SPDR Fund
Tom Lydon submits:
ETF Spotlight on Financial Select Sector SPDR Fund (NYSEArca: XLF), part of an ongoing series.
Assets: $7.3 billion. Objective: The ETF’s tracking index represents the financial sector of the S&P 500. Holdings: Top holdings include: JP Morgan Chase (NYSE: JPM) 8.81%, Wells Fargo & Co. (NYSE: WFC) 8.16%, Citigroup (NYSE: C) 6.43%, Bank of America (NYSE: BAC) 5.83% and Goldman Sachs (NYSE: GS) 3.80%.
What You Should Know:
- XLF has an expense ratio of 0.20%.
- The fund has 81 holdings.
- The financials sector is 14.8% of the S&P 500, and assets within the sector have an 88% correlation with the S&P 500, according to Morningstar analysts.
- The financial aid the government has provided for banks has “come at the steep price of significant shareholder dilution,” say Morningstar analysts. “In many instances, despite impressive overall asset growth, on a per share basis (adjusted for secondary offerings) assets actually declined. Hence, we