Financial Select Sector SPDR ETF (XLF) - NYSEARCA
  • Wed, Jun. 1, 8:35 AM
    • "Transformational" cost savings in which investment banks cut their way to earning their cost of capital is a "pipe dream," says Boston Consulting Group, with just a handful having a chance of success.
    • Bankers dream about merging swaths of back-office and mid-office functions into a "industry utility," but the dreams are just that thanks to governance issues, says BCG.
    • But what about the blockchain? Still in its infancy, says BCG, "and cannot be counted on for an imminent solution to realize efficiencies."
    • Source: FT
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Wed, Jun. 1, 8:35 AM
  • Tue, May 31, 10:43 AM
    • "The regulatory environment is completely different than it was five years ago,” says M&T Bank (NYSE:MTB) Chief Compliance Officer Greg Imm. "You can accept it and move on, or fight it and lose."
    • The 2010 Dodd-Frank law has more than 22K pages of rules on matters ranging from bank capital to how lenders may advertise. Alongside those rules are thousands of regulators set out to watch banks, and tens of thousands of new staff hired by banks to keep those regulators happy.
    • That sort of stuff adds up, and the six largest U.S. banks in 2013 spent $70.2B on compliance, double the amount in 2007 ... and costs have mounted since.
    • "The dynamic can be maddening for all sides, with regulators, internal compliance executives and employees operating like rival tribes," write Kirsten Grind and Emily Glazer in the WSJ.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Tue, May 31, 10:43 AM | 10 Comments
  • Wed, May 25, 2:51 PM
    • In news that will shock very few, a study from the Treasury's Office of Financial Research finds the banks' so-called living wills required by the Dodd-Frank law can't do the job they were designed for - that is provide a blueprint for winding down the operations of a distressed major bank without causing tumult in the rest of the financial system.
    • Drawing on just the public portions of the living wills, the study says bank holding companies have not reduced either their complexity or their interconnectedness. Who could've thunk it?
    • Full study
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, FAZZ
    | Wed, May 25, 2:51 PM | 1 Comment
  • Tue, May 24, 10:22 AM
    • Stocks had already started the morning nicely in the green, but a blowout new home sales number for April has the homebuilders higher by about 2.5%, and the major indexes up by more than 1%.
    • It's also got traders upping bets on a June rate hike, with another move to follow before year-end. That's boosting the yield-starved financials (XLF +1.5%), particularly the banks (KBE +2%).
    • Among the financial movers: Bank of America (BAC +1.4%), JPMorgan (JPM +1.9%), Regions Financial (RF +1.8%), Fifth Third (FITB +2.1%), E*Trade (ETFC +2.9%), Interactive Brokers (IBKR +2.6%), MetLife (MET +1.8%), Prudential (PRU +2.2%), Lincoln National (LNC +1.8%), State Street (STT +2.1%)
    | Tue, May 24, 10:22 AM | 21 Comments
  • Fri, May 20, 12:11 PM
    • "The days of negative provisioning are pretty much dead," says D.A. Davidson's Kevin Reevey. "Now, they're going to have to take provisioning expense and build up reserves based on loan growth."
    • Total bank loan loss reserves were north of $250B in Q1 2010, before falling to about $24B at the end of last year. Amid the energy crash, they edged higher in Q1. Naturally, those lenders with the most exposure to energy posted some of the largest reserve increases in Q1. "It wasn't just the levels that [oil] went to, it was the speed at which prices dropped," says Peter Guilfoile, chief credit officer at one of those banks - Comerica (NYSE:CMA). Colorado-based National Bank Holdings (NYSE:NBHC) posted the largest Q/Q increase in reserves-to-loans, jumping 39 basis points to 1.43%.
    • Meanwhile, there were plenty of other banks which actually saw declines in that ratio, notably Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), and U.S. Bancorp (NYSE:USB). These and other lenders in that bucket can thank denominator of that ratio growing quickly enough to offset reserve builds.
    • Source: SNL Financial's Zach Fox and Venkatesh Iyer
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, WDRW, DPST, FAZZ
    | Fri, May 20, 12:11 PM | 15 Comments
  • Wed, May 18, 2:11 PM
    • Turns out those hawkish Fed speakers yesterday were prepping markets for today's FOMC minutes, which show "most" on the committee as expecting the next rate hike to be in June.
    • To review: At the start of the week, short-term rate markets had been expecting less than a 5% chance of tighter policy in June.
    • Up 100 points earlier, the Dow (NYSEARCA:DIA) has turned negative, as has the S&P 500 (NYSEARCA:SPY). The Nasdaq (NASDAQ:QQQ) is holding onto a slim gain. Yield-starved financials (XLF, KRE, KBE) are holding onto very big gains.
    • The 10-year Treasury yield is up six basis points to 1.84%. TLT -1.1%
    | Wed, May 18, 2:11 PM | 40 Comments
  • Wed, May 18, 1:08 PM
    • The meme of rates lower for longer has been stood on its head in the last 24 hours thanks to some decent economic data, but also surprisingly hawkish Fedspeak yesterday.
    • The fixed-income world now believes remarks from the Fed's Williams and Lockhart yesterday may have been a preview of what we'll get when the real power speaks tomorrow - Fischer and Dudley - and then on May 27, when Janet Yellen gives a speech.
    • Up at 2 ET are the minutes from the FOMC's April meeting.
    • The 10-year yield is higher by five basis points to 1.82% and short-term rate markets have upped expectations for a Fed move this year.
    • XLF +1.85%, KBE +3.15%, KRE +3.3%
    • Bank of America (BAC +3.7%), Citigroup (C +4.2%), JPMorgan (JPM +3.2%), Wells Fargo (WFC +2.1%), U.S. Bancorp (USB +2.1%), Regions (RF +3.3%), KeyCorp (KEY +3.7%), PNC Financial (PNC +2.7%), Fifth Third (FITB +3.7%), Capital One (COF +1.9%), E*Trade (ETFC +4.4%), Schwab (SCHW +4.8%), MetLife (MET +2.9%), Prudential (PRU +3.4%), Lincoln National (LNC +4.2%), BNY Mellon (BK +2.3%), Northern Trust (NTRS +2.9%)
    | Wed, May 18, 1:08 PM | 75 Comments
  • Fri, May 13, 12:43 PM
    • Financials are already laggards, having shed more than 3% this year - the third-worst performance of the ten S&P 500 sectors - versus the broader market's 1% gain. And that's with the contribution of REITs, which are higher by 6.7%.
    • Come September, though, real estate stocks are set to be split off from financials in the first S&P 500 sector lineup change since the current one's introduction in 1999.
    • Investors have pulled about $4.8B from mutual funds and ETFs focused on financials this year - how much might they have pulled, and how much will they pull once the popular REITs have their own home?
    • State Street Global Advisors late last year launched a special real-estate sector ETF (NYSEARCA:XLRE), and it's higher by 4.2% this year versus the Financial Select SPDR's (NYSEARCA:XLF2.8% loss.
    • "We're going to follow the changes in the benchmark," says Vanguard, but iShares' U.S. Financials ETF (NYSEARCA:IYF) follows a different index (it's off 1.7% this year), so will be unaffected by the change.
    • Source: WSJ
    • ETFs: XLF, VNQ, IYR, FAS, FAZ, UYG, VFH, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, IYF, RFI, JRS, BTO, KBWY, NRO, DRV, RIT, IYG, FNCL, SEF, FXO, RIF, REK, DRA, FRI, RYF, FINU, FTY, RWW, FREL, LRET, PSR, XLFS, WREI, FINZ, XLRE, IARAX, FAZZ
    | Fri, May 13, 12:43 PM | 12 Comments
  • Thu, May 12, 5:40 AM
    • While 2015 was a record-breaking year for M&A, 2016 so far will go down as what could have been. Nearly $400B of deals - most recently the Staples/Office Depot merger - have fallen apart so far this year, according to Dealogic, whether thanks to regulators, rocky markets, or reluctant targets. Even if no other deals fall through for the rest of the year, that amount would still be a record.
    • It's bad news for banks - particularly as business continues to slow in areas like trading. Also, advisors typically only pocket most of their money when deals close, meaning there's been a lot work for naught this year.
    • The breakups of just the Pfizer/Allergan, Halliburton/Baker Hughes, and Staples/Office Depot deals cost banks more than $300B in advisory fees (and potentially much more than that).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, FAZZ
    | Thu, May 12, 5:40 AM | 6 Comments
  • Tue, May 10, 2:34 PM
    • No sooner than it's noticed that the S&P 500 hasn't moved more than 1% in either direction for the last month, the S&P 500 (NYSEARCA:SPY) is up 1.1%.
    • It's a broad gain, with financials (XLF +1.2%), energy (XLE +1.6%), and materials (XLB +1.6%) leading the way.
    • Gold's little-changed, oil's higher by 2.45% to $44.51, and the 10-year Treasury yield is up one basis point to 1.755%.
    | Tue, May 10, 2:34 PM | 29 Comments
  • Thu, May 5, 10:20 AM
    • Mandatory arbitration clauses are the norm across products like credit cards, student loans, prepaid cards, and payday loans, and they're used by lenders to block class-action suits and force private negotiations to settle disputes.
    • The proposal which would prohibit such moves by banks is expected to take effect next year unless the up-in-arms bank lobby can stop it.
    • "Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong,” says CFPB boss Richard Cordray.
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, FAZZ
    | Thu, May 5, 10:20 AM | 1 Comment
  • Thu, Apr. 21, 12:13 PM
    • Years after Dodd-Frank passed, regulators still haven't agreed on an oversight plan for the country's too big to fail banks. A proposal put out for public comment today from the National Credit Union Administration would force top management to wait at least four years before collecting most bonus pay, and would allow for clawbacks (up to seven years later) in the event of future losses.
    • The NCUA is one of six agencies that would have to adopt the rule.
    • The thinking behind this sort of proposal are skewed pre-crisis incentives in which managers were in a "heads I win, tails I don't lose" situation, and thus had no qualms about taking on excessive risk.
    • This new proposal is significantly tougher than a version in 2011 which was scrapped after much criticism.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, FAZZ
    | Thu, Apr. 21, 12:13 PM | 8 Comments
  • Fri, Apr. 15, 7:49 AM
    • Earlier this month, a federal judge pulled a stool leg out from the Financial Stability Oversight Council and its "too big to fail" designations when she struck down MetLife's SIFI status, and another court is questioning the constitutionality of the Consumer Financial Protection Bureau.
    • Regulators, meanwhile, continue to regulate, and this week declared the "living wills" of nearly all of the nation's major banks are unacceptable. The banks promise to comply, if only they could figure out what that means.
    • That Dodd-Frank reform has failed and needs to be reformed is pretty much a foregone conclusion at this point. The question is whether the judicial or legislative branch does it, and if it's the legislative branch, what would a Clinton-led rewrite look like? Sanders? Cruz?
    • Now read: A New Normal: How Regulations Have Changed The Way We Pick Bank Stocks (April 12)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, FAZZ
    | Fri, Apr. 15, 7:49 AM | 17 Comments
  • Wed, Apr. 13, 11:31 AM
    • JPMorgan's revenues and profits both fell from a year ago, but the lame performance of the banks thus far this year has already priced in a weak quarter. JPMorgan is higher by 3.8%, with Citigroup (C +4.7%), Bank of America (BAC +3.5%), Wells Fargo (WFC +1.7%), Goldman Sachs (GS +2.9%), and Morgan Stanley (MS +4.4%) joining the party. The XLF is higher by 1.75% vs. the S&P 500's 0.7% advance.
    • But what about all of these players (except for Citi) having their living wills rejected by the Fed, FDIC, or both? A sideshow, no doubt. Regulators are going to regulate - like the commercial goes, "It's what they do." Banks will tweak plans, numbers, or whatever they need to in order to get D.C. to eventually sign off.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, IYG, FNCL, SEF, FXO, RYF, KCE, FINU, RWW, XLFS, FINZ, FAZZ
    | Wed, Apr. 13, 11:31 AM | 24 Comments
  • Wed, Apr. 13, 8:12 AM
    • As leaked last night, regulators have sent so-called living wills by five major U.S. banks back to the drawing board. JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), BNY Mellon (NYSE:BK), and State Street (NYSE:STT) have until Oct. 1 to revise their plans or face potential penalties.
    • Official announcement
    • Regulators were split on Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), with the FDIC giving Goldman a thumbs down, but the Fed not, and just the opposite for Morgan.
    • Citigroup (NYSE:C) is the only one of the major banks not to have their plan rejected, though both the Fed and FDIC found "shortcomings" that need to be addressed by July 2017.
    • The next time you're thinking about complaining over some silly fee charged by your lender, have a thought for the armies of accountants, analysts, and lawyers the bank is paying to comply with D.C.'s whims.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, FAZZ
    • Now read: Financials Are Set To Miss Already Lowered Earnings Estimates
    | Wed, Apr. 13, 8:12 AM | 97 Comments
  • Fri, Apr. 8, 4:30 PM
    | Fri, Apr. 8, 4:30 PM | 1 Comment
XLF Description
The Financial Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Financial Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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Sector: Financial
Country: United States
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