Financial Select Sector SPDR Fund (XLF) Buy,…

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Financial Select Sector SPDR Fund (XLF)

55.63

+0.01 (0.02%)

as of Jul 2, 2026, 11:57:30 pm Market Open.

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Investor Insights

Jul 2, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

Experts provide a generally positive outlook on the Financial Select Sector SPDR Fund (XLF-N), emphasizing the potential for growth in the U.S. financial sector amid easing interest rate pressures and positive economic indicators such as strong GDP and jobless claims. The consensus is that the sector could benefit from increased capital markets activity, buybacks, and potential deregulation, positioning financials in a favorable light compared to other sectors. While there are cautionary notes regarding Canadian financials, many experts see U.S. financials as reasonably priced with a good growth ratio. The yield curve’s steepening and expectations for better net interest margins further bolster the positive sentiment towards financials.

Consensus

Positive

Valuation

Undervalued

Similar

BAC

BUY

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.

HOLD

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

BUY

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.

BUY ON WEAKNESS

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.

BUY

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

DON'T BUY

Why are financials labouring today? True, the reports of JPM, Citi and Blackrock were fabulous, but we will have an inverted yield curve (and higher interest rates for longer) which will weigh on net interest income. Not fatal, but he wouldn't step into financials.

BUY

US financials ETF?

In his ETF long/short fund, financials are his second-biggest weighting. XLF includes BRK.B, Visa, JPM, a few regional banks, asset management companies, P&C companies. All are performing well right now. Only made a new high in the last year, start of a new, longer-term bull market.

KIE also looks really good, the insurers. KCE includes asset managers and investment banks, also good.

See his Top Picks.

BUY

Financials will be resilient during a recession. Prefers this ETF than an individual bank stock. In every recession, there's always one industry whose balance sheet is hurt the most. In 2000-1, it was tech. They cleaned up their balance sheet so they could endure the next recession. In 2008, it was financials. Therefore, financials are set up for this year.

BUY

Doesn't expect a recession, but if there is, financials are a good space to be in. Balance sheets are healthy. Will benefit from a lift in economic activity through loans.

BUY

He sold some of MS shares to buy this, taking profits. A pure momentum trade.

BUY

The VIX at 30 is a signal. She's also watching S&P levels. We're near a bottom. She took off some hedges today. She bought back XLF.

DON'T BUY

The most broadly diversified financials ETF. Bumping along. US bank sector only last year broke above the highs of 2007, a positive backdrop. Instead, look at the KCE, a capital markets ETF with MS, GS and so on. KCE has twice the dividend yield, with a higher growth rate, and outperforming nicely since April. Either go with KCE, or pick an individual name like MS.

COMMENT

Today's hot inflation data triggering a sell-off There's a lot of put-buying today. There was a buyer of 11,000 of the August 31 puts in XLF, for example. Buyers are looking for more downside or get a little protection to the downside. The key market influencer is not oil, but rather it continues to be the 10-year yield: above 3% the markets start selling, and below 3%, they buy. Certainly, energy and food are major contributors to inflation.

BUY

USD ETF for a new investor. You won't find good yield in the US banks, as they're about 1.75%. Try XLF, as it's done well and he'd be buying. If you want to be in USD, this is the place to be.

BUY

We're just starting to see the seasonality for US financials, which usually runs from mid-December to mid-April, though it can start in January. US financials have recently pulled back compared to the S&P 500. They're much more sensitive to interest rates than Canadian banks, because the Canadian banks have much higher dividends. US financials react strongly to inflation and interest rate movement. At the beginning of the year, inflation and interest rates tend to pick up. He's bullish on both US and Canadian banks. In the States, he uses the XLF, which should do well coming up in the new year, especially if interest rates and strength in the economy start to pick up. If investors can look ahead to when Omicron numbers decline, which they will, they'll see this sector do quite well seasonally from now till mid-April.

Showing 16 to 30 of 87 entries

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Financial Select Sector SPDR Fund (XLF)