XLF - ETF AI Analysis
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Financial Select Sector SPDR Fund (XLF)
XLF, the Financial Select Sector SPDR Fund, earns a solid overall rating largely because many of its biggest holdings—like JPMorgan Chase, Wells Fargo, and American Express—show strong financial performance, positive earnings call sentiment, and generally supportive technical trends that point to healthy growth potential. However, some key positions such as Berkshire Hathaway, Visa, and Mastercard face bearish technical signals or concerns about valuation and leverage, and the fund’s heavy concentration in large U.S. financial institutions means its rating is sensitive to risks specific to the financial sector.
XLF vs. SPDR S&P 500 ETF (SPY)
- AUM
- 51.75B
- Region
- North America
- Expense Ratio
- 0.08%
- Beta
- 0.86
- Issuer
- SPDR
- Inception Date
- Dec 16, 1998
- Dividend Yield
- 1.48%
- Asset Class
- Equity
- Index Tracked
- S&P Financial Select Sector
XLF Summary
The Financial Select Sector SPDR Fund (XLF) is an ETF that tracks the S&P Financial Select Sector Index, focusing on large U.S. financial companies. It holds big names like JPMorgan Chase and Berkshire Hathaway, along with other major banks, credit card firms, and insurance companies. Someone might invest in XLF to get broad exposure to the financial sector in a single, low-cost fund, which can help diversify a stock portfolio and potentially benefit from economic growth and rising interest rates. A key risk is that it is heavily tied to financial stocks, so it can rise or fall sharply with changes in the economy and interest rates.
How much will it cost me?
The Financial Select Sector SPDR Fund (XLF) has an expense ratio of 0.08%, meaning you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, which typically costs less than actively managed funds.
What would affect this ETF?
The Financial Select Sector SPDR Fund (XLF) could benefit from rising interest rates, which often boost profitability for banks and financial institutions, as well as economic growth that increases demand for financial services. However, it may face challenges from stricter regulations on the financial sector or economic slowdowns that reduce lending and investment activity. Additionally, its heavy exposure to U.S.-based financial companies makes it sensitive to domestic economic and policy changes.
XLF Top 10 Holdings
XLF is essentially a bet on big U.S. financials, with Berkshire Hathaway and JPMorgan setting the tone. Berkshire has been lagging lately, acting more like a stabilizing anchor than a growth engine, while JPMorgan’s mixed but generally steady performance keeps the fund on a respectable footing. The payment giants Visa and Mastercard, both seeing choppy, mixed momentum, add a growth tilt but aren’t firing on all cylinders. Meanwhile, traditional banks like Bank of America and Wells Fargo have been dragging the fund, underscoring how sensitive this U.S.-centric, financial-heavy ETF is to the broader banking cycle.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 BRK.B | Berkshire Hathaway B | 12.78% | $6.66B | $1.14T | 9.26% | 66Neutral |
 JPM | JPMorgan Chase | 11.43% | $5.96B | $886.58B | 10.88% | 72Outperform |
 V | Visa | 8.85% | $4.62B | $752.27B | 18.05% | 70Outperform |
 MA | Mastercard | 6.43% | $3.35B | $543.49B | 9.55% | 75Outperform |
 BAC | Bank of America | 4.22% | $2.20B | $350.57B | -2.69% | 72Outperform |
 GS | Goldman Sachs Group | 3.29% | $1.71B | $255.00B | 15.92% | 73Outperform |
 WFC | Wells Fargo | 3.19% | $1.66B | $245.53B | -4.44% | 80Outperform |
 MS | Morgan Stanley | 2.75% | $1.43B | $283.33B | 11.38% | 76Outperform |
 C | Citigroup | 2.63% | $1.37B | $204.13B | 23.37% | 68Neutral |
 AXP | American Express | 2.15% | $1.12B | $213.67B | -8.91% | 80Outperform |
XLF Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLF, the sentiment is Positive. The current price of 55.72 is above the 20-day moving average (MA) of 54.45, below the 50-day MA of 56.07, and above the 200-day MA of 53.35, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 77.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLF.
XLF Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| XLF | $55.72 | $61.00(9.48% Upside) | $51.75B | 0.08% | 72Outperform |
 VGT | $120.20 | $155.09(29.03% Upside) | $149.00B | 0.09% | 74Outperform |
 XLK | $185.44 | $236.40(27.48% Upside) | $122.64B | 0.08% | 75Outperform |
 XLV | $179.82 | $192.64(7.13% Upside) | $46.47B | 0.08% | 73Outperform |
 XLE | $67.97 | $72.26(6.31% Upside) | $44.80B | 0.08% | 73Outperform |
 VFH | $135.38 | $153.62(13.48% Upside) | $13.02B | 0.09% | 68Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| XLF | Financial Select Sector SPDR Fund | 55.72 | 4.00 | 7.73% | |
| VGT | Vanguard Information Technology ETF | 120.20 | 25.34 | 26.71% | |
| XLK | Technology Select Sector SPDR Fund | 185.44 | 41.63 | 28.95% | |
| XLV | Health Care Select Sector SPDR Fund | 179.82 | 36.18 | 25.19% | |
| XLE | Energy Select Sector SPDR Fund | 67.97 | 24.72 | 57.15% | |
| VFH | Vanguard Financials ETF | 135.38 | 9.68 | 7.70% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.