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Financial Select Sector SPDR ETF (XLF)

  • Jan. 18, 2013, 9:44 AM
    Wall Street's latest attempt at financial alchemy - turning single-family rental payment streams into securities - is dealt a setback after Moody's says the current planned structure would pose serious risk to buyers of the paper, thus making it undeserving of a credit rating much higher than junk.
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  • Jan. 17, 2013, 1:45 PM
    As Bank of America (BAC -5%) and Citigroup (C -3.2%) swoon following earnings, regionals reporting today fly higher: PNC +3.7%, FITB +4%, BBT +2.2%. Were their results that much better? Maybe. More likely it's a rotation out of the high-flying TBTFs into the more modestly valued regionals. The regional bank ETF (KRE) gains 1.3% vs. the XLF flat.
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  • Jan. 17, 2013, 8:27 AM
    From here forward, Bank of America (BAC) and its TBTF brethren will have to make money through operations. Reduced provision for credit losses added about $7B to income in 2012 (vs. total income of $4.2B), but provisions now stand at $2.2B, giving far less room for additional earnings boosts. Shares -1.5% premarket. (earnings)
  • Jan. 15, 2013, 7:37 AM
    Early notes from the BAML fund manager survey shows respondents at their most bullish in 2 years and the most overweight banks since 2007. Allocations to eurozone equities are the highest in 5 years. The BAML read was notable for much of 2012 for showing extreme bearishness among fund managers, but had turned optimistic at the end of the year.
  • Jan. 11, 2013, 10:53 AM
    Wells Fargo (WFC) will indeed request permission from the Fed for a bigger capital return in 2013, says CFO Tim Sloan on the conference call. Q4 repurchases (42M shares) were not returns as they were done mostly to offset employee stock awards. A theme of the call: The bank has too much money and nowhere to profitably invest it. One popular way - mortgage lending - looks to be slowing, with $125B issued in Q4, down from $139B in Q3. Shares -1.6%, with the rest of the banks following. (earnings)
  • Jan. 10, 2013, 8:23 AM
    "The banks will not get this country in trouble, I guarantee it," says major bank investor Warren Buffett. "The capital ratios are huge, the excesses on the asset side have been largely cleared out," he adds, seemingly making more of a case for the debt and the preferred, rather than the common equity. He's in no hurry to convert his Bank of America (BAC) preferred and says if the bank wants to call it, it's free to do so.
  • Jan. 9, 2013, 8:25 AM
    Among Doug Kass' 15 surprises for 2013 will be new Senator Elizabeth Warren spearheading the introduction of a financial transaction tax. Combined with weak capital markets, reduced M&A activity, and narrow net interest margins, its makes the XLF and GS sells.
  • Jan. 8, 2013, 3:29 PM
    Vanguard's recent expense reduction means 9 of its 10 sector ETFs are now the cheapest available to U.S. investors. With an annual expense ratio of just 0.14%, VOX, VPU, VCR, VDC, VDE, VHT, VIS, VGT, and VAW stack up favorably vs. the 0.18% charged  by State Street's Sector SPDRs (XLU, XLY, XLP, XLE, XLF, XLV, XLK, XLI, XLB and XTL which charges 0.35%) and the 0.47%-0.48% iShares sector ETFs (RXI, KXI, IYE, IYF, IYZ, IYH, IDU, IYW, IYM, IYJ) charge. At 0.19%, Vanguard Financials (VFH) is still slightly more expensive than the Financial SPDR (XLF).
  • Jan. 7, 2013, 9:16 AM
    With the S&P at a new bull market high, Bespoke looks at sector performance since the last peak on Sept. 14. Leading the pack in the 4-month span are the financials (XLF) +5.2%, followed by Industrials (XLI) +3.6%, and Healthcare (XLV) +3.5%. Bringing up the rear are tech (XLK) -6.9% and Energy (XLE) -3.4%.
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  • Jan. 6, 2013, 9:55 PM
    Some will call it a back down, some a bow to reality, but the Basel committee approves a far easier liquidity rule for banks than had been proposed 2 years ago. Lenders will be allowed a wider range of assets that qualify as capital buffers, a lower assumed rate of fund outflows in a crisis, and be given until 2019 (rather than 2015) to implement the new regime.
  • Jan. 4, 2013, 10:47 AM
    Big-cap bank bulls worried about a little too much love being shown for the hot sector may take comfort from an Atlantic cover and story entitled "What's Inside America's Banks?" It rehashes worries about the opaqueness of bank balance sheets and seems to draw quite a bit from a frustrated Bill Ackman who unloaded his Citigroup stake at a big loss right around the bottom last summer.
  • Jan. 3, 2013, 1:36 PM
    Finally having gotten the message, regulators are expected to lighten up on the banks with the release Sunday of Basel's new liquidity coverage ratio. Working pro-cyclically, regulators for years have been forcing banks to raise liquidity and capital just at the time when they should be encouraged to shovel funds out the door. The coming rule is expected to give lenders extra years to meet the new standard.
  • Jan. 2, 2013, 12:12 PM
    "Time is running out" for bank managements to prove their low stock valuations are only short-term, says Mike Mayo. He again suggests breaking up the big banks will improve their stock prices, citing surging price-to-book values following the introduction of Glass-Steagall in 1933.
  • Jan. 1, 2013, 11:40 AM
    Financial services ETFs (XLF, IPF, IXG led all sector ETFs in 2012, followed by consumer discretionary (XLY, IPD, RXI), healthcare (XLV, IRY, IXJ) and tech (XLK, IPK IXN). Utilities (XLU, IPU, JXI) and telecom (IST, IXP) underperformed.
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  • Dec. 28, 2012, 7:12 AM
    Any hopes the banks had of stalling new Dodd-Frank rules apparently ended with the "London whale" losses which reminded lawmakers and regulators of why they were so up in arms in the first place. Notable was OCC Chief Counsel Julie Williams' departure from her job shortly after waving off the JPMorgan incident as just the cost of doing business.
  • Dec. 20, 2012, 3:39 PM
    A proposed new accounting rule could force bank loan-loss reserves to be increased by 50%, says FASB head Leslie Seidman, after taking comment from lenders. Even though it could be years before the rule takes effect, profits could begin taking a hit right away as banks stop cutting loss reserves in anticipation.
XLF vs. ETF Alternatives
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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