Financial Select Sector SPDR Fund (XLF) Buy,…

Financial Select Sector SPDR Fund (XLF)

55.52

+0.25 (0.45%)

as of Oct 16, 2026, 8:00:00 pm Market Open.

58 watching

TOP PICK

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.

BUY

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

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.

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Financial Select Sector SPDR Fund (XLF)