Financial Select Sector SPDR ETF (XLF) - NYSEARCA
  • Jul. 17, 2015, 4:11 PM
    | Jul. 17, 2015, 4:11 PM | 1 Comment
  • Jul. 13, 2015, 7:59 AM
    • The KBW Nasdaq Global Bank Index (ticker: GBKX) is the first index designed to track the performance of banks designated as global systemically important by regulators.
    • The 28 lenders in the index represent 45% of the global investable banking universe and account for about $3T in market cap. Its current average yield is 3.14%, and it contains exposure to six different currencies.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | Jul. 13, 2015, 7:59 AM
  • Jul. 6, 2015, 1:31 PM
    • It was a rough start to the year for the financial sector, but at about the mid-point of 2015, the XLF is ahead 9.7%, easily outpacing the S&P 500's 1.8% rise.
    • Calling U.S. Treasury yields "considerably more resilient" today than in 2012 thanks to the strength of the economy, Erika Najarian and team don't expect the Greek crisis to impact the 10-year yield or the timing of the first Fed rate hike.
    • The bottom line, says Najarian, is to expect continued rotation into the financial names, with solid loan performance in Q2 a catalyst on top of the improved interest rate picture.
    • Najarian and team are sticking with their Buy-list of rate-sensitive names: JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Comerica (NYSE:CMA), KeyCorp (NYSE:KEY), Regions Financial (NYSE:RF), SVB Financial (NASDAQ:SIVB), East West Bancorp (NASDAQ:EWBC), and Texas Capital Bancshares (NASDAQ:TCBI).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | Jul. 6, 2015, 1:31 PM
  • Jul. 2, 2015, 11:50 AM
    • Most of the usual suspects are part of a group of 15 global banks under investigation by Brazil antitrust watchdog Cade over alleged currency rigging.
    • This new investigation comes just weeks after six lenders agreed to pay $5.8B to the U.S. to settle similar charges.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | Jul. 2, 2015, 11:50 AM
  • Jun. 22, 2015, 2:44 PM
    • Financials sunk along with Treasury yields last week, but are seeing a strong bounce today alongside a ten basis point gain in the 10-year yield to 2.36%.
    • The XLF is up 1.6% versus the S&P 500's 0.7% gain.
    • Helping U.S. equity markets is movement toward a Greek debt deal which sent Europe's Stoxx 50 hurtling 4% higher on the session. Yields tumbled in the periphery, but are sharply higher in Germany as well as the U.S.
    • Yield-sensitive Bank of America (BAC +1.8%) is leading the TBTF names higher. In regionals: PNC Financial (PCN -0.2%), KeyCorp (KEY +1.2%), Regions Financial (RF +1.4%), SunTrust (STI +1.3%), First Niagara (FNFG +1.2%).
    • Life insurers: MetLife (MET +2%), Prudential (PRU +1.6%), Lincoln FInancial (LNC +1.4%). Online brokers: E*Trade (ETFC +3.3%), Schwab (SCHW +2.2%), Ameritrade (AMTD +1.3%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
    | Jun. 22, 2015, 2:44 PM | 13 Comments
  • Jun. 19, 2015, 2:08 PM
    • Financial Select Sector SPDR (NYSEARCA:XLF) announces quarterly distribution of $0.11
    • 30-Day Sec yield of 1.61% (as of 06/17/2015).
    • Payable June 29; for shareholders of record June 23; ex-Div. June 19.
    | Jun. 19, 2015, 2:08 PM | 1 Comment
  • Jun. 16, 2015, 8:22 AM
    • FQ2 (ending May 31) fixed-income net revenue at Jefferies (NYSE:LUK) jumped 56% from a slow Q1, but fell 29% from a year ago. Total net revenue of $792M climbed 9.4% Y/Y.
    • CEO Richard Handler notes fixed-income results improved each month during the quarter.
    • Jefferies results often provide clues about how larger rivals like JPMorgan (NYSE:JPM), Citigroup (NYSE:C), and Goldman Sachs (NYSE:GS) may fare when they report their Q2s next month.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | Jun. 16, 2015, 8:22 AM
  • Jun. 9, 2015, 2:45 PM
    • Yield-starved financial sector names were mercilessly punished to start 2015 as sharply falling interest rates in January again disappointed investors waiting for the return of some spread income.
    • The rout in bond prices since, alongside what now seems the near-certainty of the beginning of Fed rate hikes in as soon as three months has helped turn things around, and the sector - as measured by the Financial Select SPDR (NYSEARCA:XLF) - is now in the green for the year, and trails the S&P 500 by just about 150 basis points.
    • Among the notable movers today as the 10-year yield rises to another 2015 high: Bank of America (BAC +1.4%), Wells Fargo (WFC +1.2%), U.S. Bancorp (USB +1.4%), Regions Financial (RF +1.3%), Huntington Bancshares (HBAN +1.6%), KeyCorp (KEY +1.6%), PNC Financial (PNC +1.3%), M&T (MTB +1.1%), Bank of Hawaii (BOH +1.6%), First Horizon (FHN +1.2%), Lincoln National (LNC +1.1%), E*Trade (ETFC +0.9%)
    • 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
    | Jun. 9, 2015, 2:45 PM | 16 Comments
  • Jun. 5, 2015, 10:27 AM
    | Jun. 5, 2015, 10:27 AM | 34 Comments
  • Jun. 2, 2015, 3:31 PM
    • The averages are flat to negative this session, but yield-starved financials are digging the big jump in interest rates - the 10-year Treasury yield is up nine basis points on the session to 2.27%, and 15 bps for the week.
    • Previously: Yields surge as European deflation fears abate (June 2)
    • The Regional Bank ETF (KRE +1.3%) and the Bank ETF (KBE +1.2%).
    • Individual names: Regions Financial (RF +1.6%), New York Community Bank (NYCB +1.3%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1%), Fifth Third (FITB +1.3%). Thought of as perhaps the most asset-sensitive of the large lenders, Bank of America (BAC +1%) is leading the TBTFs higher.
    • Life insurers: MetLife (MET +1.2%), Prudential (PRU +1.5%), Lincoln Financial (LNC +0.9%), Primerica (PRI +1.2%).
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
    | Jun. 2, 2015, 3:31 PM | 10 Comments
  • May 19, 2015, 11:17 AM
    • April was about as expected, but revenue from fixed income, currencies, and commodities isn't looking good at the investment banks in May, according to the team at JPMorgan.
    • Equity business, however, is outperforming, which should be to the benefit of shops like SocGen (OTCPK:SCGLY), UBS, and Morgan Stanley (NYSE:MS).
    • At Morgan Stanley, CEO James Gorman - speaking to reporters following the annual meeting - says market conditions have remained "solid" in spite of geopolitical news which would have spooked investors in the past. Gorman declined to give a more specific update on how Q2 was faring at his bank.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | May 19, 2015, 11:17 AM
  • Apr. 22, 2015, 1:20 PM
    • "We have consumer staples (NYSEARCA:XLP) and healthcare stocks (NYSEARCA:XLV) trading on average at 20 times earnings and five times book value - while these stocks aren’t often thought of as value, they actually comprise 20% of the Russell 1000 Value (NYSEARCA:IWB) index," says Richard Pzena on the company (NYSE:PZN) earnings call (transcript).
    • Add REITs and utilities to the mix, he continues, and it's pretty hard to call that value index "value" anymore.
    • "The natural question: Is it different this time? Does this era of low interest rates presage something permanently different ... We believe that the odds of such an outcome are low."
    • Though, not getting into in the subject during the earnings call, Pzena presumably remains bullish on the large-cap financial sector names (NYSEARCA:XLF) which continue to be weighed down on by ZIRP.
    • Previously: Low-rate "torture" for the regional lenders (April 21)
    | Apr. 22, 2015, 1:20 PM
  • Apr. 21, 2015, 9:37 PM
    • "This whole discussion today about when interest rates move is torture for us,” said U.S. Bancorp (NYSE:USB) CEO Richard Davis on last week's earnings call. “I remain very optimistic for the economy … a little less optimistic for the bankers until interest rates start to move up.”
    • Earlier today, Regions Financial (NYSE:RF) and Fifth Third (NASDAQ:FITB) became the latest in a line of lenders reporting slimming net interest margins. For Regions, the average yield on its loan portfolio fell to 3.45% from 4.03% a year ago. "You’re trying to book the prudent loans that you have the opportunity to, but with the level of competition in the market, it’s hard to move those rates up absent some kind of interest-rate increase," said Regions chief Grayson Hall on the earnings call.
    • On average, U.S. banks with more than $10B in assets showed a NIM of 2.97% in Q4, the lowest level in 25 years according to the FDIC ... And it got worse in Q1. Six of the nine big commercial banks reporting so far - including Wells Fargo (NYSE:WFC) and PNC Financial - had Q1 margins lower than Q4.
    • Bank of America (NYSE:BAC) and Regions - two banks seen as particularly sensitive to interest rates - are unsurprisingly the worst performers in the KBW bank index (NYSEARCA:KBE) this year, off 13.9% and 9.3% respectively.
    • What to do? Regions, for one, is trying to emulate the Wall Street big boys by bulking up its wealth management and capital markets operations. And maybe there's some more fat to trim. “We’re going to turn up the heat on expenses…and we’ll see where we get to,” said PNC boss William Demchak on last week's conference call.
    • Source; WSJ's Peter Rudegeair
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS
    | Apr. 21, 2015, 9:37 PM | 9 Comments
  • Apr. 17, 2015, 3:02 PM
    • "[Interest spreads] are unimaginably low for those of us who have followed this area for a long time,” says Nancy Bush of NAB Research.
    • While low rates have provided occasional income boosts at lenders thanks to bursts of refinancing and the related fees, that well may have run dry. Now banks must rely on the gap between what they pay for deposits and what they charge for loans, and at Wells Fargo the spread dropped below 3% for the first time in decades, and at JPMorgan, it's just 2.07% after falling another seven basis points in Q1.
    • On the expense side, the low-hanging fruit of big cuts following the financial collapse is gone, with at least some of it replaced by legal costs which won't quit and regulatory costs which look here to stay.
    • Mergers? One look at the 3-years-and-running battle to close Hudson CIty and M&T Bank is enough to make any management shy about pursuing large acquisitions.
    • Source: Ben McLannahan and Tom Braithwaite in the FT.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS
    | Apr. 17, 2015, 3:02 PM
  • Apr. 6, 2015, 4:21 PM
    • The TD Ameritrade Investor Movement Index edged up to 4.75 in March from a two-year low of 4.70 in February, suggesting clients are just slightly more optimistic as the calendar turns to April than they were in February.
    • Clients continued to buy the dip in energy (NYSEARCA:XLE) names like Exxon, Chesapeake Energy, and SeaDrill, while selling popular financial stocks (NYSEARCA:XLF) like Citigroup and AIG.
    • The IMX has moved roughly inline with the S&P 500 (NYSEARCA:SPY) over the past three years, but there's been a clear divergence over the past six months, with the IMX trending decidedly lower while the market continues on to new highs.
    • Source: TD Ameritrade Investor Movement Index
    | Apr. 6, 2015, 4:21 PM
  • Apr. 2, 2015, 7:35 AM
    • Expecting the S&P 500 (NYSEARCA:SPY) to gain only another 2% by year-end, and noting the index's pricey relative valuation, Goldman's David Kostin recommends investors instead by the Nasdaq 100 (NASDAQ:QQQ) - its expected earnings growth of 14% tops the S&P's 5%, but both indexes trade at similar P/Es.
    • Breaking it down into sectors, Kostin recommends being Overweight information technology, energy (NYSEARCA:XLE), and telecom services (XTL, IYZ).
    • Neutral: Health care (NYSEARCA:XLV), consumer discretionary (NYSEARCA:XLY), materials (NYSEARCA:XLB), and utilities (NYSEARCA:XLU).
    • Underweight: Financials (NYSEARCA:XLF), consumer staples (NYSEARCA:XLP), and industrials (NYSEARCA:XLI).
    | Apr. 2, 2015, 7:35 AM | 7 Comments
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.
See more details on sponsor's website
Sector: Financial
Country: United States
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