XLF Stock Recent News

The US Federal Reserve released annual stress test results for 31 banks, showing they are well-positioned to withstand a severe recession. The largest financial sector vehicle, the Financial Select Sector SPDR ETF, holds 71 stocks with the 7 largest stocks comprising nearly half of its assets. Despite decent stress test results, I assess XLF as an ETF that has run its course for a while, without offering compelling upside.

If you're interested in broad exposure to the Financials - Broad segment of the equity market, look no further than the Financial Select Sector SPDR ETF (XLF), a passively managed exchange traded fund launched on 12/16/1998.

Previously an outperformer with a year-to-date gain of over 11%, the financial sector now finds itself at a critical juncture after giving back some of its gains. Just six trading days ago, the Financial Select Sector SPDR ETF NYSE: XLF made a new high but has since pulled back over 2%.

Several analysts recently boosted the year-end price target for the S&P 500 on earnings optimism and the Fed rate cut hopes.

The first-quarter earnings reporting cycle is nearing an end. About 88% of the S&P 500 companies have reported so far in Q1 with 5% growth in earnings and 4.2% growth in revenues.

IYG: A Rotation To Financials Makes Sense

UBS pointed out that rapid earnings growth recorded by the big six tech giants over the past year is now ebbing. Hence, this could be the time to bet on non-cyclical sectors.

Designed to provide broad exposure to the Financials - Broad segment of the equity market, the Financial Select Sector SPDR ETF (XLF) is a passively managed exchange traded fund launched on 12/16/1998.

We have downgraded the rating on the Financial Select Sector SPDR® Fund ETF from a BUY to a HOLD. Since I wrote my buy rating, the XLF ETF has seen a price advancement of more than 20% in less than 1 year. Together with its dividend decrease, the valuation has become expensive.

There is a shift towards a more inclusive approach to stock market investments, helped by a promising economic outlook and supportive monetary policies. Somewhat ebbing AI mania and regulatory woes probably are leading Investors to look beyond Magnificent Seven.