Updates Based on Data
– The XLF Financial ETF has rallied nearly 10% from its June low, presenting a favorable risk-reward buying opportunity as it returns to uptrend support.
– It focuses on large banks, providing a low-cost passive exposure to major players in the US financials segment through a cap-weighted, S&P 500-only portfolio.
– Top holdings like Berkshire Hathaway, JPMorgan Chase, Visa, Mastercard, and Bank of America have a significant impact on the ETF’s performance, making it important for investors to closely monitor these stocks.
Report and Findings
– The Financial Select Sector SPDR Fund (XLF) has experienced an impressive rally, climbing almost 10% from its June low.
– While the ETF is up only 2% year-to-date, it has the potential for increased performance if it finds support and confirms a higher low within the uptrend.
– The XLF provides exposure to significant players in the US financials segment and focuses on large banks through a cap-weighted, S&P 500-only portfolio.
– The XLF has over 95.2% geographic exposure to the United States and is heavily weighted towards the financial sector, with 98% exposure.
– The top holdings of the XLF include Berkshire Hathaway, JPMorgan Chase, Visa, and Mastercard, which have outperformed the broader financial sector.
– If the XLF can find support and confirm a higher low above the uptrend, there could be a potential move towards $35.5 – $36 in the short term.
Should You Invest in XLF?
– The XLF has reclaimed key moving averages and formed a steady uptrend since its June low.
– Despite a slight pullback in the past week, the ETF remains above its uptrend, indicating that momentum still favors the bulls.
– It is important to consider the performance of the top holdings and the overall market before making an investment decision.