Financial Select Sector SPDR ETF (XLF) - NYSEARCA
  • Tue, Feb. 23, 2:21 PM
    • Oil is off nearly 5% on the session on the back of Saudi comments showing a lack of concern over shale production and putting a damper on speculation about a deal for supply cuts. Energy (XLE -2.6%) is the biggest sector decliner in the S&P 500.
    • Leading materials (XLB -2.2%) lower is a 4.9% decline in BHP Billiton after the company slashed its dividend by about 75% following reporting its first loss in 16 years. The dividend cut combined with capex and expense reductions should save the mining giant more than $10B a year.
    • An honorable mention in the decliners today is the financial sector (XLF -1.5%) thanks to a combination of lower for longer interest rates and bank exposure to energy (JPMorgan boosted its loan-loss reserves).
    • The S&P 500 is down 0.9%, and the Nasdaq 1%.
    | Tue, Feb. 23, 2:21 PM | 7 Comments
  • Fri, Feb. 19, 12:47 PM
    • "The  Federal Reserve is playing with fire on bank capital," write Anthony Currie and Gina Chon at Reuters, responding to the central bank's green light for Capital One (NYSE:COF) to add $300M to its buyback program.
    • While the amount is of little consequence to CapOne's capital ratio, say the authors, and it's probably not a bad idea to add to repurchases after the recent shellacking in bank shares, the whole point of the stress tests were to monitor earnings and balance sheets over a longer time frame than only a few weeks.
    • Further, the results of this year's stress tests are due in just a few weeks.
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
    • Previously: Capital One adds $300M to buyback (Feb. 17)
    | Fri, Feb. 19, 12:47 PM | 3 Comments
  • Thu, Feb. 11, 2:37 PM
    | Thu, Feb. 11, 2:37 PM | 69 Comments
  • Wed, Feb. 10, 9:15 AM
    • Most assume central bank benchmark deposit rates can't get that far below zero before lenders find it cheaper to actually hoard physical cash rather than depositing it. A Bank of England study, for instance, suggests a floor of about minus 0.5%.
    • A new report from JPMorgan, however, says England could go to negative 2.5%, the EU -4.5%, Japan -3.45%, and the U.S. -1.3%.
    • It's good news for banks, whose earnings (and balance sheet strength) are thought to be at risk as policy rates head into negative territory.
    • ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
    | Wed, Feb. 10, 9:15 AM | 16 Comments
  • Mon, Feb. 8, 2:24 PM
    • It is the European banks and contagion concerns that are freaking out the markets today - not just the Fed, China and crude oil - according to David Rosenberg, noting that some of the European banks are trading at 2008 crisis levels after the group has tumbled 18% YTD vs. 11% for the STOXX 600 index.
    • European financial firms are taking a beating amid fears of "a chronic profitability crisis that makes it impossible for banks to build up barely-adequate capital bases," WSJ reports.
    • Deutsche Bank (DB -9.8%) is down another ~10%, bringing its YTD loss to nearly 40% while its valuation has fallen to ~30% of book value, and its credit default swaps spiked to their highest levels since 2012.
    • News of major withdrawals out of Credit Suisse (CS -4.2%) caused its shares to sink 11% last week, hitting a 24-year low, and Santander (SAN -6.2%), BBVA (BBVA -5.4%), and UniCredit (OTCPK:UNCFF -5.5%) are down to lows seen during the last eurozone financial crisis.
    • "Oil and the flatter yield curve alone do not explain the 12% plunge we have seen in S&P Financials so far this year," Rosenberg says, adding that BofA (BAC -6.1%), Citigroup (C -6.2%) and Wells Fargo (WFC -3.5%) all briefly touched 52-week lows last week - "an ominous signpost."
    • ETFs: XLF, FAS, FAZ, UYG, VFH, PSP, IYF, EUFN, BTO, IPF, IAI, IYG, SEF, FNCL, FXO, PFI, IXG, PEX, RYF, FINU, KCE, RWW, KBWC
    • Earlier: Markets extend two-day rout; gold gets 3% boost
    | Mon, Feb. 8, 2:24 PM | 36 Comments
  • Thu, Feb. 4, 8:06 AM
    • Results from the Fed's Senior Loan Officer Opinion Survey show banks tightened standards on commercial and industrial and commercial real estate loans in Q4. Lenders also expect standards to tighten more over the course of this year.
    • Deutsche's Jim Reid says there's never been two consecutive quarters of tightening standards without signaling an eventual move into recession and a notable default cycle.
    • Households loans look to be a different story, with the survey finding a moderate easing of standards for residential mortgages, as well as on auto loans.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ, XLFS
    | Thu, Feb. 4, 8:06 AM | 13 Comments
  • Wed, Feb. 3, 10:25 AM
    • This just in: The financial sector is having a worse go it this year than energy, with the XLF lower by 13.6% YTD vs. the XLE's 9% decline.
    • Leading a big reversal from this morning higher open is the XLF's 2% decline. The S&P 500 is now off 1%, and the XLE "just" 0.85%.
    • Among the issues for the financials are two items: 1) Hopes for a sustained rate hike cycle have been dashed, with the 10-year yield tumbling all the way to 1.82% currently from about 2.30% when the Fed hiked in mid-December. Fed speakers are all-of-a-sudden sounding very dovish (Dudley is the latest), and short-term rate futures are now pricing in just a 50% chance of even one Fed rate increase this year; 2) For lenders specifically, there's worry over their exposure to the crashing energy sector. No doubt better capitalized today than 10 years ago, losses are still losses even if they don't threaten the viability of the bank.
    • JPMorgan (JPM -2.6%), Wells Fargo (WFC -3.6%), Morgan Stanley (MS -3.5%), KeyCorp (KEY -3.1%), PNC Financial (PNC -2%), Comerica (CMA -2.7%), Schwab (SCHW -3.8%), MetLife (MET -2.5%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS, XLFS
    | Wed, Feb. 3, 10:25 AM | 16 Comments
  • Tue, Feb. 2, 3:48 PM
    • The Fed's adding a new twist to its severely adverse scenario in this year's stress test - asking lenders how they would handle a prolonged period of rates below zero. Ninety-day bill rates slipped below 0% a number of times over the past few years, but never stayed there for very long.
    • Along with that scenario would be unemployment doubling to 10% - the same level it hit after the financial crisis.
    • Negative rates, of course, are breaking out all over Europe, and the Bank of Japan last week introduced negative deposit rates as part of its latest attempt to spur the economy into faster growth.
    • The Fed and Fed watchers caution negative rates are just a stress test scenario, and not necessarily any sort of forecast about where things are headed.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ, XLFS
    | Tue, Feb. 2, 3:48 PM | 6 Comments
  • Tue, Feb. 2, 12:52 PM
    • Alongside energy's underperformance today is the financial sector (XLF -2.4%). The long-awaited hope of a sustained rise in interest rates appears dashed once again - at least so far this year.
    • The 10-year Treasury yield is lower by seven basis points to 1.88% - a nine-month low - and short-term rate markets are now pricing is less than one 25 basis point rate hike for the remainder of the year.
    • TBTFs: Bank of America (BAC -4.4%), Citigroup (C -4%), Goldman Sahcs (GS -4.4%)
    • Regionals: U.S. Bancorp (USB -2.5%), Regions (RF -3.1%), SunTrust (STI -4%)
    • Life insurers: MetLife (MET -3%), Prudential (PRU -3.2%), Lincoln Financial (LNC -3.7%)
    • Online brokerage: Schwab (SCHW -4.2%), E*Trade (ETFC -3.8%), Ameritrade (AMTD -3.6%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS, XLFS
    | Tue, Feb. 2, 12:52 PM | 69 Comments
  • Fri, Jan. 29, 9:22 AM
    • "The market is clearly saying that Citigroup (NYSE:C) is worth far more dead than alive," says fund manager Colin McWey, an owner of the stock, but scratching his head at its valuation of just two-thirds of tangible book value.
    • JPMorgan (NYSE:JPM) and PNC Financial (NYSE:PNC) trade for right around book value.
    • Bank valuations are so cheap right now, says Morningstar's Jim Sinegal, that not a lot has to go right for an investor to make money.
    • What about energy? Is it the new subprime? First off, writes Michael Brush, exposure isn't that high. At JPMorgan, it's about 1.6% of total loans; at Citi it's 3.3%. Energy loans make up just 1.8% of total loans at the roughly 15 lenders in Baird analyst David George's coverage universe vs. 25% exposure to housing sector debt. George: Most banks could write off all energy loans and still not post a loss.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS, XLFS
    | Fri, Jan. 29, 9:22 AM | 21 Comments
  • Thu, Jan. 28, 2:56 PM
    • Some sources say total exposure of U.S. banks to the oil and gas industry is 3-5% of total assets, says Pavillion Global Markets. A joint regulatory study by the Fed, FDIC, and OCC found U.S. banks' aggregate oil portfolios total $276.5B, or 7.1% of the total $3.9T syndicated loan portfolio of large U.S. banks in all industries.
    • Though a number of banks have boosted loss provisions in light of the energy bust, Pavillion doesn't see a lot more disruption coming. Bank underperformance of late has more to do with a general U.S. economic slowdown than the oil crash.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS, XLFS
    | Thu, Jan. 28, 2:56 PM
  • Mon, Jan. 25, 3:34 PM
    • Holding modest losses for most of the session, the major averages are now off more than 1% as oil (USO -6.8%) gives back a big chunk of its gains from late last week. S&P 500 (SPY -1.4%), Nasdaq 100 (QQQ -1.3%).
    • Energy (XLE -3.9%) is naturally leading today's selling, but the financials (XLF -1.9%) are struggling as well. This just in: the XLF's 12.4% loss YTD is greater than the XLE (down 11.2%).
    • Previously: Pain continues in financial names (Jan. 25)
    | Mon, Jan. 25, 3:34 PM | 16 Comments
  • Wed, Jan. 13, 2:56 PM
    • The day's declines have picked up a good bit of steam, with all of the major averages sitting at session lows a bit more than an hour before the close.
    • The Nasdaq (NASDAQ:QQQ) and Small-caps (NYSEARCA:IWM) are leading the way with declines of more than 3%, while the Dow (NYSEARCA:DIA) and S&P 500 (NYSEARCA:SPY) are off just over 2%.
    • Leading sectors on the downside: Energy (XLE -2.5%) and Financials (XLF -2.4%). What's working? Utilities (XLU), barely.
    • In the green for most of the session, oil is now modestly lower and threatening to head below $30 per barrel.
    • Money is pouring into fixed income, with the 10-year Treasury yield off another five basis points today to 2.05%. It hasn't been below 2% since early October. TLT +1%, TBT -2%
    | Wed, Jan. 13, 2:56 PM | 10 Comments
  • Wed, Jan. 13, 1:14 PM
    • It wasn't supposed to be this way after the Fed embarked on a rate hike cycle as these yield-starved names could finally look forward to earning a better spread on their money.
    • Since the Fed hiked last month, however, the long bond yield has tumbled about 20 basis points, further narrowing the yield curve.
    • With today's 1.3% decline, the XLF is lower by 7.6% YTD, about 200 basis points worse than the S&P 500 (but about 250 basis points better than the energy sector).
    • TBTFs: Morgan Stanley (MS -3.9%), Goldman Sachs (GS -2.3%), Citigroup (C -1.8%)
    • Regionals: U.S. Bancorp (USB -2%), Regions Financial (RF -3.4%), New York Community Bancorp (NYCB -2.2%)
    • Mortgage-related names like Ocwen (OCN -6.2%), Nationstar (NSM -5.3%), Walter Investment (WAC -13.9%), and New Residential (NRZ -5.3%) have come in for particular punishment this day and this year. The mortgage REITs too: Hatteras Financial (HTS -4.4%), Western Asset (WMC -3.6%), New York Mortgage (NYMT -2.3%), Five Oaks (OAKS -5.2%), PennyMac (PMT -2.6%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ, XLFS
    | Wed, Jan. 13, 1:14 PM | 47 Comments
  • Dec. 22, 2015, 11:29 AM
    • The financial sector as a whole (NYSEARCA:XLF) is lower by 4.9% this year - about 300 basis points worse than the S&P 500 - but an index of "shadow banks" put together by KBW is down by more than 20%.
    • Student lenders and alternative asset managers have led the way down - each falling more than 30%. Performing better than the average are BDCs and mortgage insurers.
    • Shadow banking is a broad brush, but the KBW team notes a number of common factors: The end of QE, concerns weakness in energy may spread to other sectors, and the threat of greater regulatory scrutiny.
    • Lending Club (NYSE:LC) and OnDeck Capital (NYSE:ONDK) are each down more than 50% this year, and their focus on consumers and small business seem to make them the type to be targeted by D.C. Still, they've each struck partnerships with at least one large bank and an outright sale to a bigger player doesn't seem out of the question.
    | Dec. 22, 2015, 11:29 AM | 3 Comments
  • Dec. 18, 2015, 5:26 PM
    • Financial Select Sector SPDR ETF (NYSEARCA:XLF) announces quarterly distribution of $0.1498.
    • 30-Day Sec yield of 1.81% (as of 12/17/2015).
    • Payable Dec. 29; for shareholders of record Dec. 22; ex-div Dec. 18.
    | Dec. 18, 2015, 5:26 PM
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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