The SPDR Fund for the Financial Sector was established on December 16, 1998 (XLF) aims to provide investment results similar to the performance of the S&P Financial Select Sector Index.XLF follows financial sector and allocates its fund to banking, insurance, real estate investment funds (REITs), capital markets, diversified financial services, consumer finance, real estate management and mortgage finance industries.
Key things
- The SPDR Financial Select Sector Fund (XLF) seeks to track the S&P Financial Select Sector Index.
- The fund is an open-ended investment entity managed by State Street Global Advisors.
- XLF’s largest holdings include Berkshire Hathaway, JPMorgan Chase, Visa, Mastercard, Bank of America, S&P Global, Morgan Stanley, Goldman Sachs and BlackRock Inc.
The highest holdings of the SPDR fund (XLF).
As of July 25, 2023, XLF’s top 10 holdings were:
- Berkshire Hathaway Inc. Class B (BRK.B)
- JPMorgan Chase & Company (JPM)
- Visa Inc. Class A (V) Shares
- Mastercard Inc. (MA)
- Bank of America Corporation (BAC)
- Wells Fargo (WFC)
- S&P Global Inc. (SPGI)
- Morgan Stanley (MS)
- Goldman Sachs Group Incorporated (GS)
- BlackRock Inc. (BLK)
The largest holding in the Financial Select Sector Fund (XLF) is Berkshire Hathaway with about 13% of the fund’s assets.
Management and Evaluation of the SPDR Fund (XLF).
The SPDR Financial Select Sector Fund (XLF) has a comprehensive portfolio of 72 holdings, which helps mitigate the company’s risks. The ETF is best suited for investors who are willing to take an above-average level of risk and seek overweight exposure to the US financial services industry.
The SPDR ETF is an open-end investment company managed by State Street Global Advisors Funds Management Incorporated. XLF is listed on the New York Stock Exchange. As of July 25, 2023, XLF had $35.8 million in assets under management (AUM) with an annualized return of 10.99%. According to Morningstar, XLF provides above-average returns with an average risk rating of 4 stars.
The Financial Select Sector SPDR’s gross expense ratio of 0.10% is low compared to others exchange traded funds (ETFs) that track the financial sector. State Street Global Advisors can maintain this low value cost ratio because it deals in securities lending.
How do I find out the XLF share price?
The XLF fund price is published on fund tracking websites such as Yahoo Finance, Nasdaq and The Wall Street Journal. You can also find it on the website for State Street.
What stocks contain XLF?
The Financial Select Sector SPDR Fund (XLF) is a basket of stocks representing investment banks, insurance funds and other financial companies in the S&P 500 index. The largest single holding is Berkshire Hathaway, which represents about 13% of the fund’s total value.
Is XLF actively managed?
The Financial Sector SPDR Fund (XLF) is passively controlled. The management firm does not attempt to pick stocks that will beat the index or outperform the broader market, but only tracks a specific group of companies. This allows the fund to reflect the overall performance of the financial sector while keeping fund costs low.
Bottom Line
The Financial Select Sector SPDR Fund (XLF) is a diversified fund that covers various sectors in the financial sector with strong returns and high liquidity. The SPDR Financial Select Sector Fund has a comprehensive portfolio of 72 holdings, including Berkshire Hathaway, Visa and Mastercard.