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Financial Select Sector SPDR ETF (XLF)

- NYSEARCA
  • Oct. 22, 2014, 10:32 AM
    • The MBA index rose 11.6% for the week ended October 17, the largest gain since January as mortgage rates continued to decline - the average 30-year fixed mortgage coming in at 4.1%, the lowest since May 2013.
    • Leading the way were refinancings, with that gauge jumping 23.3%, the biggest move since January 2012 (purchase applications fell 4.6%).
    • Should the trend continue, the now-lean mortgage operations at places like Wells Fargo (WFC +0.2%), JPMorgan (JPM +0.2%), and Bank of America (BAC +0.2%), among others, should provide a nice boost to Q4 results.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, KBWR, RWW, RYF, FINZ, KRS
    | 1 Comment
  • Oct. 17, 2014, 12:20 PM
    • One of the key issues serving as a road block to mortgage lending is banker fear over having any loans put back to them by the GSEs at any time - even years down the road - for any number of reasons.
    • This concern was voiced most pointedly in the late summer by Wells Fargo (WFC +1.2%) CEO John Stumpf in the kind of call-out of regulators you don't often hear from corporate leaders.
    • The WSJ is now reporting that Fannie (OTCQB:FNMA +5.9%), Freddie (OTCQB:FMCC +7.3%), their regulators, and banks are near a deal in which the lenders could feel protected enough to begin granting mortgages to those without perfect credit and employment histories.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | 53 Comments
  • Oct. 15, 2014, 10:49 AM
    | 5 Comments
  • Oct. 14, 2014, 12:21 PM
    • Amid a trio of Q3 earnings reports - JPMorgan, Citigroup, and Wells Fargo - the Financial Sector Select SPDR (XLF +1%) is one of the day's most-traded ETFs, with 26.4M shares trading hands thus far. The fund is also strongly higher despite misses at JPMorgan and Wells Fargo (both of those names are lower). Citigroup, however, is ahead by 2.3%.
    • Also on the move are the Vanguard Financial Index (VFH +1.3%) and the iShares U.S. Financials ETFS (IYF +1.2%)
    • Broad fin'l sector ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | Comment!
  • Oct. 13, 2014, 8:00 AM
    • When you're a hammer, everything looks like a nail. In what smells like another foray by the Consumer Financial Protection Bureau, with other agencies possibly joining in, banks are reportedly under investigation for lending ... this time for automobiles.
    • Amid an otherwise sluggish loan market - especially for mortgages - auto lending has experienced rapid growth over the past few years, particularly subprime lending, and those in that business - Santander Consumer being one - are already under examination by the CFPB.
    • At issue for banks is not just the direct auto loans they're making, but the financing they're providing to shops like Santander Consumer.
    • Wells Fargo (NYSE:WFC) is the largest U.S. auto lender, with $50.8B in loans outstanding at the end of last year, roughly $15B of which was subprime. In addition, the bank has extended since 2011 more than $1.5B of credit lines to the country's largest subprime lenders. Other sizable players include Capital One (NYSE:COF) and JPMorgan (NYSE:JPM).
    • "Banks are making a lot of money off these (auto) loans in many different ways," says the head of a consumer advocate group. Isn't that what they're supposed to do?
    • "The subprime auto sector appears too small to present a systemic risk," says BAML's Michael Hanson.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, KBWR, RWW, RYF, KRS, FINZ
    | 5 Comments
  • Oct. 10, 2014, 12:52 PM
    • The banking industry is very close to resolving too big to fail, says Jamie Dimon (JPM +0.6%), speaking publicly for the first time since his cancer diagnosis (other than his July earnings call appearance). He's appearing at a conference roundtable alongside Morgan Stanley's (MS +0.8%) James Gorman, Deutsche's (DB -0.9%) Anshu Jain, and Bank of America's (BAC +0.7%) Brian Moynihan.
    • Webcast here
    • The most pointed remarks so far come from Deutsche's Jain, who tells those who would continue to further strangle the banks with more regulation to look to Europe. Straightforward banking - taking deposits and making loans - is far more the norm there then here, he says, and the forcing of banks to trim businesses and balance sheets is a large contributor to the Continent's stagnant growth.
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KCE, KRU, KBWR, RWW, RYF, KBWC, KRS, FINZ
    | 4 Comments
  • Oct. 9, 2014, 4:00 PM
    • It's unlikely that the strong dollar will impact Q3 earnings as much as people think, Diane Garnick, CEO of global asset management firm Clear Alternatives says. But it will impact Q4 earnings. We're likely to see companies meet or exceed earnings in Q3, but give downward forecasts for Q4, she says.
    • Companies with bigger international exposure, like Wal-Mart (NYSE:WMT) will lower their estimates more. The same is true for sectors dominated by companies with global exposure like financials (NYSEARCA:XLF).
    • Conversely, companies like Walgreen (NYSE:WAG) who are almost all U.S. dollar based will be less impacted by a stronger dollar. Also relevant for ETFs like XLP and XLU.
    • Link: Reuters Insider
    | Comment!
  • Sep. 29, 2014, 8:04 AM
    • The usual banking suspects are falling under the gaze of regulators for a trading strategy known as "dividend arbitrage" which helps their hedge fund clients reduce taxes, and from which the banks earn more than $1B in fees annually.
    • The strategy - typically run from London - involves banks temporarily transferring ownership of stock to a lower-tax jurisdiction about the time when the client expects to receive a dividend on those shares. It's perfectly legal say the banks and hedge funds.
    • Bank of America (NYSE:BAC), however, has been questioned by the Richmond Fed (Charlotte comes under its purview) about the legal and reputational risks of such maneuvers, reports the WSJ.
    • It isn't clear if other banks have been similarly questioned, but a number of other lenders do the same thing. Among the hedge funds which benefit from dividend arbitrage is Och-Ziff Capital Management (NYSE:OZM).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 41 Comments
  • Sep. 19, 2014, 2:12 PM
    • Financial Select Sector SPDR ETF (NYSEARCA:XLF) announces quarterly distribution of $0.0984.
    • 30-day SEC yield of 1.55% (as of 09/18/2014).
    • Payable Sept. 29; for shareholders of record Sept. 23; ex-div. Sept. 19.
    | Comment!
  • Sep. 18, 2014, 12:53 PM
    • Banks, insurers, brokerages and anything else starved for yield continue to gain following yesterday's FOMC news. Among the gainers are Bank of America (BAC +1.9%) - which breaks above $17 for the first time since April - Citigroup (C +2.7%), Wells Fargo (WFC +1.1%), PNC (PNC +1.1%), Fifth Third (FITB +1.7%), SunTrust (STI +1.2%), Schwab (SCHW +2.3%), Prudential (PRU +2.5%), and Lincoln National (LNC +2.4%).
    • The XLF +1.2%, KBE +1.5%, and KRE +2%.
    • Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, RYF, KRS, FINZ
    • Lit up bright red is the utility sector (XLU -1%), led by Southern Company (SO -1.1%), Dominion Resources (D -1.2%), Duke Energy (DUK -1.4%), and Pinnacle West (PNW -1.9%).
    • Utility ETFs: XLU, IDU, VPU, UPW, RYU, FUTY, PUI, FXU, SDP, PSCU
    | Comment!
  • Sep. 17, 2014, 3:16 PM
    • Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
    • Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
    • U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
    • MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
    • Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
    • Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
    | 6 Comments
  • Sep. 16, 2014, 1:25 PM
    • Seeking its bit of the mortgage payout cheese, Virginia sues the usual suspects, seeking $1.15B in damages for allegedly misleading the Virginia Retirement System about the quality of mortgages backing MBS it purchased between 2004 and 2010.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | Comment!
  • Sep. 11, 2014, 7:27 AM
    • The capital shortfall for the world's top 102 banks to meet 2019 standards would have been just $19.5B at the end of 2013, says the BIS, versus an estimated shortfall of about $75B six months previous (it was estimated at about $500B three years ago). By 2019, the targeted common equity ratio is 7%.
    • Reducing the gap are profits, lower payout ratios, the shedding of assets, and restructuring of businesses.
    • Most of the ground to be made up is in Europe, where the top 42 banks have a shortfall of about $15B.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | 1 Comment
  • Sep. 9, 2014, 12:24 PM
    • The Fed intends to impose a capital surcharge on banks tougher than the international standard, according to Fed Governor Daniel Tarullo's prepared remarks for the Senate Banking Committee. Those banks with heavier reliance on short-term funding like overnight loans - i.e. Goldman Sachs (GS -1%) and Morgan Stanley (MS -1.8%) - will likely face even more rigorous requirements.
    • Officials haven't yet decided on a number, but reportedly are considering as much as 200 basis points more than the top range of 2.5% of risk-weighted assets agreed to by international regulators.
    • What's not yet clear is who would need to raise capital to meet the new, tougher standard.
    • Citigroup (C -1%), Bank of America (BAC -0.6%), JPMorgan (JPM -1.3%), Wells Fargo (WFC -0.4%), State Street (STT -1.1%), Bank of New York Mellon (BK -0.9%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 25 Comments
  • Sep. 2, 2014, 7:15 PM
    • The FBI has found no evidence to suggest the hacker(s) who successfully penetrated the computer system at JPMorgan Chase (NYSE:JPM) scored any similar successes against other big U.S. banks, WSJ reports, citing four people close to the investigation.
    • A source said the JPM incident was at first conflated with suspicious activity related to other banks, but as the investigation continued, the threats appeared to be separate.
    • JPM has said it is not experiencing unusual amounts of fraud, and two people briefed on the investigation say consumers likely do not face a serious risk; some cybersecurity experts believe the hack may have been perpetrated by Russians in retaliation for U.S. sanctions.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | 1 Comment
  • Aug. 30, 2014, 6:48 PM
    • "Most of the reason that banks are underearning relative to their historical norms ... is economic and not regulatory," says Richard Pzena (NYSE:PZN), who remains bullish on the TBTFs. Low interest rates, weak trading, and "government persecution" are the three factors, and - should these normalize - earnings could nearly double at Bank of America (NYSE:BAC) and Citigroup (NYSE:C), though JPMorgan's (NYSE:JPM) boost would be more modest. Goldman Sachs (NYSE:GS) is another favorite.
    • Broad financial ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    • Another cheap sector is energy, says Pzena, and based on relative valuation against the broader market - whether price-to-book or price-to-earnings - the major integrated oil companies are selling near all-time lows.
    • What the market is missing, says Pzena, is the nature of oil investment. The old days saw capital spending one year, and boosted volume the next. Projects nowadays are far larger and require several years of spending before returns roll in. "We think those big new projects are going to perform and produce decent returns." HIs favorites: BP, RDS.A, RDS.B, XOM, TOT.
    • Broad energy ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, PXJ, FENY, RYE, FXN, DDG
    | 26 Comments
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.
See more details on sponsor's website
Sector: Financial
Country: United States
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