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Financial Select Sector SPDR ETF (XLF)

- NYSEARCA
  • Nov. 27, 2013, 1:42 PM
    • American Express (AXP +0.4%), Discover (DFS +0.3%), U.S. Bancorp (USB +0.2%), and Wells Fargo (WFC -0.1%) are best positioned to be allowed large capital returns (about 70%) after the Fed's early 2014 stress tests, says Credit Suisse's Moshe Orenbuch, while Ciitgroup (C +0.2%) and PNC Financial (PNC +0.9%) are likely to show the biggest improvement from last year.
    • Overall, his team expects large cap bank capital returns to be 65% next year vs. about 48% in 2013. The median dividend payout ratio is expected at 22%, level with this year.
    • Orenbuch notes the CCAR will be tougher this time around - notably by assuming a global, not just domestic meltdown, and assuming a significant reversal in the property market - with commercial real estate exposure particularly harshly judged.
    • Balanced against that and likely winning, however, are far stronger capital positions of the banks, says Orenbuch.
    • Financial and banking ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, IPF, SEF, IAI, IAT, IYG, FXO, PFI, IXG, KBWB, RKH, QABA, KCE, FINU, RWW, KRU, RYF, KBWR, AXFN, PSCF, KRS, FNCL, FINZ, KBWX, KBWC
    | 1 Comment
  • Nov. 27, 2013, 9:22 AM
    • "Mortgage-related litigation has recently gotten a second wind and has expanded beyond investor claims,” says S&P, now estimating legal tab for U.S. banks could be another $56.5B-$104B. The good news is banks have gotten ahead of even these crazy numbers by boosting litigation reserves to nearly $155B.
    • The bad news would be if Bank of America's (BAC) $8.5B mortgage settlement with private parties gets tossed out by a federal judge (see Article 77 hearing coverage), the litigation losses could "escalate significantly ...  the ability of US banks with the largest exposures to withstand additional expenses is not unlimited.”
    • C, WFC, MS, JPM, and GS declined to comment for the story.
    • From the Department of Legal Issues Are Going Nowhere: The Federal Home Loan Bank of Pittsburgh - claiming its losses of more than $1B are not covered by the JPMorgan global settlement - asks a judge to force JPM to turn over the draft complain from the DOJ which includes the name of a bank employee described as a cooperating witness for the government.
    • Related ETFs: FAS, XLF, FAZ, UYG, VFH, IYF, SEF, IAI, IYG, FXO, PFI, KBWB, KCE, FINU, RWW, RYF, PSCF, FNCL, FINZ, KBWC
    | 7 Comments
  • Nov. 27, 2013, 3:41 AM
    | 11 Comments
  • Nov. 20, 2013, 10:50 AM
    • Open for trade is the Horizons S&P Financial Select Sector Covered Call ETF (HFIN), which aims for extra income by using covered-calls on stocks in the S&P Financial Select Sector Index (related ETF: XLF). The HFIN has an expense ratio of 0.7%.
    • In other ETF news: ProShares updates paperwork on its Short Term USD Emerging Markets Bond ETF (EMSH), detailing an expense ratio of 0.5%. ALPS files to launch a Workplace Equality Fund (EQLT). "The ETF consists of approximately 140 stocks of U.S. and foreign companies that support equality for lesbian, gay, bisexual and transgender employees." The expense ratio will be 0.75%.
    | Comment!
  • Nov. 18, 2013, 11:56 AM
    • Led by a big move in the TBTFs, the Financial Sector SPDR (XLF +0.6%) hits its highest level since September 2008, though it remains far below the mid-2007 peak.
    • Has the easy money been made? Drexel Hamilton's David Hilder notes Bank of America (BAC +1.5%), Citigroup (C +1.8%), and Morgan Stanley (MS +1.2%) all traded well below tangible book value one year ago, and Raymond James' Anthony Polini thinks the 10-year Treasury yield will have to move above 3% and stay there before you'll begin seeing earnings estimates ratcheted up.
    • Bank of America hit its highest level in nearly 3 year today and JPMorgan (JPM +1.7%) - for all of its legal troubles - is only about 2% below prices not seen since 2000.
    • The relatively clean Wells Fargo (WFC +0.3%) is the group laggard this session.
    • Financial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, SEF, IAT, IAI, IYG, FXO, PFI, KBWB, RKH, QABA, KCE, RWW, FINU, RYF, KRU, KBWR, PSCF, KRS, FINZ, FNCL, KBWC
    | 8 Comments
  • Nov. 18, 2013, 4:30 AM
    • The Federal Reserve could delay by a year the date by which banks will have to comply with all aspects of the Volcker rule. The target at the moment is July 2014.
    • Regulators are still finalizing the proposal, which, among other things, would ban banks from proprietary trading using their own money. The regulators are unlikely to release the definitive version until December.
    • However, banks would still have to eliminate their pure proprietary trading desks by July next year.
    • The sector is concerned that the rule will limit activities such as market making and hedging.
    • ETFs: FAS, XLF, FAZ, UYG, VFH, IYF, SEF, IAI, IYG, FXO, PFI, KBWB, KCE, RWW, FINU, RYF, PSCF, FINZ, FNCL, KBWC
    • Related tickers: BAC, GS, JPM, C, BK, WFC, MS
    | 6 Comments
  • Nov. 15, 2013, 8:18 AM
    • Paul Tudor Jones' Tudor Investment in Q3 greatly boosted its holdings in the Consumer Discretionary Select SPDR (XLY), purchasing 3.6M shares to bring the total owned to 4.1M. The firm also opened a 2.8M share holding in the iShares MSCI Emerging Markets ETF (EEM).
    • No longer a part of the portfolio are the Financial SPDR (XLF), Industrial SPDR (XLI), and the Energy SPDR (XLE).
    • It's probably not too financially healthy to read a ton into these moves, as the ETF holdings could be hedges against other positions as easily as outright bets.
    • Q3 13-F
    • Q2 13-F
    | Comment!
  • Nov. 12, 2013, 3:31 PM
    • The net closing of bank branches continues a mutliquarter trend, according to SNL Financial, which finds a net loss of 390 locations in Q3 as more customers do more routine banking business online, and banks - in a sluggish revenue environment - look to the low-hanging fruit of shuttering underperforming stores. The 390 figure is about inline with Q2, but higher than prior reads.
    • "There's almost nobody in the branches," says bank consultant Jim Adkins. "You could shoot water balloons all over the place and not hit anybody."
    • In addition to costs and technology, there's also M&A, and one of the first things to be done after an acquisition is to close overlapping branches.
    • Leading the way in terms of net closings in Q3 were SunTrust (STI) and Bank of America (BAC). Not getting in the spirit of things is JPMorgan (JPM) which opened more branches than it closed in Q3.
    • Related ETFs: FAS, XLF, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, PFI, KBWB, RWW, FINU, RYF, PSCF, FINZ, FNCL
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  • Nov. 8, 2013, 4:27 PM
    | 1 Comment
  • Nov. 8, 2013, 10:41 AM
    • Up sharply as interest rates fly higher (the 10-year is up 15 basis points to 2.75%) are the life insurers - all of whom have had their investment returns more than a little constrained by puny yields. IAK +2.4%
    • MetLife (MET +5.9%), Prudential (PRU +4.5%), Lincoln National (LNC +6.8%), Hartford (HIG +3.1%).
    • Also set to benefit from a steeper yield curve (if we're to believe their models) are the banks, and they're leading the S&P 500 higher. The TBTFs: Bank of America (BAC +3.3%), JPMorgan (JPM +3.1%), CItigroup (C +3.3%), Wells Fargo (WFC +2.6%). The regionals (KRE +3.4%): Huntington (HBAN +2.6%), Regions (RF +4.2%), PNC (PNC +2.8%), FIfth Third (FITB +3.4%), First Niagara (FNFG +2%), Keycorp (KEY +3.5%), Zions (ZION +4.1%), Comerica (CMA +3.1%).
    • The XLF +1.9%.
    • FInancial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, KIE, SEF, IAT, IAI, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, RWW, FINU, RYF, KRU, KBWR, PSCF, KBWP, KBWI, KRS, FINZ, FNCL
    | 5 Comments
  • Nov. 7, 2013, 2:04 PM
    • How aggressive have banks been with loan price competition as they seek to add mortgages to their books, asks Redwood Trust (RWT +0.8%) management in its must-read Redwood Review. During Q3, some were offering 30-year fixed-rate mortgages at more than 25 basis points less than conforming rates, when typically these are 25 bps higher.
    • "We have never witnessed jumbo loan pricing quite like this," says Redwood, and it's particularly curious why banks would want long-duration assets just at the time when rates look to be headed higher. The answer is an abundance of liquidity and a desire for loan and interest income growth trumping the potential consequences down the road. "It is difficult to estimate how long this condition might persist."
    • Last night, Redwood reported taxable EPS of $0.24 and book value slipping $0.04 to $14.65 in Q3 after payment of a $0.28 dividend.
    • Related ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, SEF, IAT, IYG, FXO, PFI, KBWB, KME, RKH, QABA, RWW, RYF, KRU, FINU, KBWR, PSCF, KRS, FINZ, FNCL
    | 1 Comment
  • Oct. 22, 2013, 1:25 PM
    • The mutual fund giant greatly boosts its ETF presence, rolling out 10 sector ETFs on Thursday, with BlackRock (BLK) - whose iShares has its own suite of sector ETFs - as the funds' sub-advisor. State Street (STT), though, is better-known for its sector offerings. Launching on Thursday - and popular existing State Street SPDR ETFs they'll be competing with:
    • Fidelity MSCI Consumer Staples Index ETF (FSTA) - XLP.
    • Fidelity MSCI Consumer Discretionary Index ETF (FDIS) - XLY.
    • Fidelity MSCI Energy Index ETF (FENY) - XLE.
    • Fidelity MSCI Financials Index ETF (FNCL) - XLF.
    • Fidelity MSCI Health Care Index ETF (FHLC) - XLV.
    • Fidelity MSCI Industrials Index ETF (FIDU) - XLI.
    • Fidelity MSCI Information Technology Index ETF (FTEC) - XLK.
    • Fidelity MSCI Materials Index ETF (FMAT) - XLB.
    • Fidelity MSCI Telecommunications Services Index ETF (FCOM) - XTL.
    • Fidelity MSCI Utilities Index ETF (FUTY) - XLU.
    | 1 Comment
  • Oct. 7, 2013, 3:52 PM
    • Among banks and credit card names, FBR favors those picking up new teams/market share - namely Signature Bank (SBNY -1.4%) and Discover (DFS) - as well as those trading near book value, like HomeStreet (HMST -0.6%). PNC Financial remains a favorite for its strong growth prospects, as well as servicers like Nationstar (NSM +0.2%), Walter Investment (WAC -2.3%), and New Residential (NRZ -0.3%).
    • Those most exposed to a protracted government shutdown are smaller community banks in the D.C. area like Eagle Bancorp (EGBN -1.4%), and Cardinal FInancial (CFNL -0.2%). Capital One (COF -1.9%) - by dint of its Chevy Chase acquisition - would also feel a pinch.
    • On mREITs (REM -0.1%), the team expects Q3 book values to increase slightly, but warns its estimates are based on relatively static portfolios - "but for most names, portfolios are anything but that." With all the volatility, most mREITs may have hedged away the recent MBS rally. Starwood Property Trust (STWD) remains FBR's best idea thanks to its commercial real estate exposure.
    • Financials ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
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  • Sep. 30, 2013, 2:02 PM
    • Headline risk and falling long-term interest rates (flattening the yield curve) are behind S&P Equity Strategy Group's downgrade of the financial sector (XLF -0.6%) to Neutral. The team's estimate of earnings growth is expected to slow to 5.6% next year from 11.4% in 2013.
    • S&P needs to take a number for its downgrade as the earnings estimate cuts are flying all over the place over the last two weeks. The big banks have made little secret that mortgage and trading slowdowns are going to deliver a big hit to Q3 earnings.
    • Other relevant ETFs: IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ, KBE, KRE.
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  • Sep. 25, 2013, 9:43 AM
    • Speaking at BAML's Banking and Insurance Conference in London, Deutsche Bank (DB -1.6%) co-CEO says the bank expects a "significant" drop in Q3 trading revenue.
    • The announcement isn't unexpected, and follows a similar warning from Citigroup over the weekend, numerous other rumblings from investor conferences this month, and Jefferies' already reported ugly (from a trading standpoint) Q3.
    • Previous: FICC trading revenue has been slipping for years and should be in analyst models by this point.
    • Banks (KRE -0.6%), (KBE -0.4%) again are leading the market decline.
    • Financials ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ.
    | Comment!
  • Sep. 23, 2013, 10:23 AM
    | 2 Comments
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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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