XLF Stock Recent News
XLF LATEST HEADLINES
Financial stocks are finally getting some love. The collapse in bond yields since November and the about-face by Federal Reserve Chair Jerome Powell lit some fire under the value bulls.
Last week, the S&P 500 marked the six-week winning streak. Improved consumer sentiment and upbeat jobs data led to this gain.
Numerous small banks collapsed in 2023, with ongoing issues potentially causing more strain on at-risk financial stocks in 2024. The US banking system is dependent on Federal Reserve stimulus, but the possibility of the Fed withdrawing more support may not be fully considered. Unrealized banking losses are estimated to be around $1.7T to $2T, posing solvency risks for banks if their assets are accounted for at market value.
Vanguard Financials Index Fund ETF is likely to underperform compared to competitor ETFs due to its overly diversified holdings and lack of weight on top financial performers. VFH's performance has lagged behind iShares U.S. Financials ETF in all time periods examined. VFH's low expense ratio and high dividend yield are its key advantages, but they do not compensate for its underperformance compared to IYF.
Cooling inflation triggered the possibility of a less-hawkish Fed, going forward.
Sales are harder to be influenced in an income statement than earnings. A company can land up on decent earnings numbers by adopting cost-cutting measures that do not speak for its core strength.
November is historically the best month of the year. The news of the Fed keeping the interest rates steady in the latest FOMC meeting has bolstered further optimism in the stock market.
Looking for broad exposure to the Financials - Broad segment of the equity market? You should consider the Financial Select Sector SPDR ETF (XLF), a passively managed exchange traded fund launched on 12/16/1998.
The S&P 500, the Nasdaq and the Dow Jones -- all underperformed in the third quarter of 2023. However, these top-ranked sector ETFs might outperform in the fourth quarter.
Bank stock indexes were moving higher on Wednesday to mark their sixth straight day of gains, as bond yields eased back. The SPDR S&P Bank ETF KBE, +0.87% was up 0.7% and is trading at its highest level since Sept.