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XLF - ETF AI Analysis
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Financial Select Sector SPDR Fund (XLF)
Rating:72Outperform
Price Target:―
Positive Factors
Low Expense Ratio
The fund charges relatively low fees, so more of any gains can stay in investors’ pockets over time.
Large Asset Base
With a very high level of assets under management, the ETF is likely to offer strong liquidity and tighter trading spreads for investors.
Exposure to Leading Financial Institutions
The fund’s top holdings include many of the largest and most established financial companies, which can provide stability within the financial sector.
Negative Factors
Sector Concentration Risk
Almost all of the ETF is invested in financial companies, so it can be hit hard if the financial sector struggles.
Heavy U.S. Focus
The portfolio is almost entirely invested in U.S. stocks, offering little geographic diversification if the U.S. market weakens.
Recent Weak Performance in Key Holdings
Several of the largest positions have shown weak year-to-date performance, which has weighed on the fund’s recent returns.
XLF vs. SPDR S&P 500 ETF (SPY)
AUM52.45B
RegionNorth America
Expense Ratio0.08%
Beta0.87
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield1.39%
Asset ClassEquity
Index TrackedS&P Financial Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume59,282,893
30 Day Avg. Volume44,566,956
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
60.37Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering77
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XLF Summary
XLF is an ETF that tracks the S&P Financial Select Sector Index, focusing on large U.S. financial companies like Berkshire Hathaway and JPMorgan Chase. It holds a mix of banks, insurance firms, payment companies, and other financial businesses, giving you broad exposure to the financial sector in a single investment. Someone might invest in XLF if they believe banks and other financial firms will benefit from economic growth or changes in interest rates, and they want diversification within that sector. A key risk is that it can rise or fall sharply with the health of the financial industry and the overall market.
How much will it cost me?The Financial Select Sector SPDR Fund (XLF) has an expense ratio of 0.08%, meaning you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, which typically costs less than actively managed funds.
What would affect this ETF?The Financial Select Sector SPDR Fund (XLF) could benefit from rising interest rates, which often boost profitability for banks and financial institutions, as well as economic growth that increases demand for financial services. However, it may face challenges from stricter regulations on the financial sector or economic slowdowns that reduce lending and investment activity. Additionally, its heavy exposure to U.S.-based financial companies makes it sensitive to domestic economic and policy changes.
XLF Top 10 Holdings
XLF is essentially a bet on big U.S. financials, with heavyweight banks and payment networks steering the ship. Berkshire Hathaway and JPMorgan have been losing a bit of steam this year, acting as mild brakes on the fund, while Bank of America and Citigroup have shown mixed but improving momentum. On the brighter side, Goldman Sachs and Morgan Stanley are rising and helping offset some of that drag. With almost all exposure in U.S. financials and a tilt toward mega-cap banks and card networks, the fund’s fortunes are tightly tied to Wall Street’s mood and interest-rate trends.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Berkshire Hathaway B | 12.39% | $6.51B | $1.08T | 3.74% | 66 Neutral | |
| JPMorgan Chase | 11.13% | $5.85B | $823.62B | 9.38% | 72 Outperform | |
| Visa | 7.39% | $3.88B | $598.64B | -11.23% | 70 Outperform | |
| Mastercard | 5.84% | $3.07B | $462.28B | -8.22% | 75 Outperform | |
| Bank of America | 4.77% | $2.51B | $379.01B | 11.90% | 72 Outperform | |
| Goldman Sachs Group | 3.67% | $1.93B | $271.48B | 37.03% | 73 Outperform | |
| Wells Fargo | 3.66% | $1.92B | $268.99B | 8.75% | 80 Outperform | |
| Morgan Stanley | 2.74% | $1.44B | $272.01B | 23.17% | 76 Outperform | |
| Citigroup | 2.69% | $1.41B | $198.36B | 31.02% | 68 Neutral | |
| American Express | 2.49% | $1.31B | $231.73B | 8.51% | 80 Outperform |
XLF Technical Analysis
Negative
―
Price Trends
54.19
Negative
53.41
Negative
52.48
Negative
Market Momentum
-0.48
Positive
34.88
Neutral
8.15
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLF, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 53.35, equal to the 50-day MA of 54.19, and equal to the 200-day MA of 52.48, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 8.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XLF.
XLF Peer Comparison
Comparison Results
Performance Comparison
XLF
Financial Select Sector SPDR Fund
51.65
0.20
0.39%
VGT
Vanguard Information Technology ETF
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―
―
XLK
Technology Select Sector SPDR Fund
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―
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XLV
Health Care Select Sector SPDR Fund
―
―
―
XLE
Energy Select Sector SPDR Fund
―
―
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VFH
Vanguard Financials ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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