Jim Lebenthal Financial Select Sector SPDR Fund XLF-N DON'T BUY Apr 12, 2024

Holds only the financials, including insurers and bigger banks. Avoid the US regionals.

Most financials are above their 50-day moving average, technically still in an uptrend. Surprising and healthy. Use volatility like today to put your money to work.

Financials are the strongest sector this year. XLF is up 19% this year. He holds 35 stocks in financials and 26 outperform the S&P, including Progressive, KKR and Hartford Financial. They have revenue growth and strong momentum.

Good long-term hold for the past 20 years, even through all the ups and downs of markets.

Deregulation (under Trump as expected) and private equity in the areas of industrials, tech and consumer are two drivers. The banks enjoyed a major rally this week.

He's very bullish the market and financials. His fund has 28% exposure in financials, including insurance, private equity and regional banks.

Up 30% in last 12 months. Diversified with 75 US financial names., such as BRK, JPM, Visa, MA, and BAC. US financials are underowned in Canada. Mainly large-cap value, with some growth names. The space should do well, as we're on track for a soft landing in the US. Lower interest rates are expected to stimulate economic activity and boost demand for financial products.

Deregulation and pro-business policies of Trump administration should benefit the sector. M&A activity will speed up as a consequence, which enhances fees for financial institutions.

Diversified exposure to US banks, investment firms, asset managers, and insurance. Economic activity in the US is improving. Financials are poised to benefit from higher trading volumes and more robust capital market activity. New US administration is pro-business, and that will boost the sector via de-regulation, corporate tax cuts, and business-friendly policies. All that will drive M&A, increasing profitability and fees.

Top names include JPM, GS, Visa, BRK.B. All well-positioned to benefit from these trends. During Trump's first year in 2017, financial sector went up by 22%. Yield from Canadian banks is better, but US names will give you more capital growth. Yield is 1.4%.

Likes the financial sector in the US. In his opinion, it's one of the top sectors on a go-forward basis. 200-week MA has started to turn upwards, with 200-day trending higher as well. Looking beyond tariffs to deregulation and tax cuts, those moves will benefit some of the names in this ETF. MER is only 8 bps.

Great way to get exposure to all the major bank names as well as BRK.B.