NYSEARCA:XLF

Financial Select Sector SPDR Fund (XLF)

56.88
+0.57 (1.01%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 26, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Experts generally express a positive view on the Financial Select Sector SPDR Fund (XLF), suggesting that it is well-positioned for growth amid favorable conditions in the U.S. financial sector. Recent earnings reports from major banks indicate potential for further appreciation, bolstered by a healthy economy characterized by strong job claims and GDP growth. The possibility of a steepening yield curve and active capital markets further enhances the attractiveness of this sector. Additionally, deregulation and a positive outlook on earnings recovery contribute to a bullish sentiment, despite some concerns regarding Canadian financial institutions that are deemed overvalued. Overall, experts advise to consider increasing positions in U.S. financials, highlighting their competitive valuations relative to the broader market.

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Consensus
Positive
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Valuation
Fair Value
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Similar
BAC
BUY

US banks and holds some of the larger ones. Traded in US$’s. You are likely going to see more upside from US banks than Canadian banks due to the recovery in the housing market.

HOLD

Chart shows this is reaching its old highs and you have to keep in mind that past buyers may Sell some of their holdings. He always waits for a breakout before moving into a stock.

COMMENT

This has done quite well, but when you are dealing with the US financials as opposed to the Canadian, there is a much riskier paradigm going on. Also, what he is sometimes concerned about in US financials are lawsuits. It will be a riskier sector but he sees nothing wrong with being in it.

PAST TOP PICK
(A Top Pick Sept 14/10. Up 0.52%.) Still likes.
TOP PICK
(A Top Pick May 11/10. Down 6.3%.) Financial ETF. He loves the US financials because 1) earnings are quite strong underneath because of reduced loan losses, 2) US is moving more towards a Canadian model and 3) everybody hates them. For trader types, you can go from $14.50 to $17, which is not a bad flip. He could see it reaching $30.
TOP PICK
US Financial Services ETF. Expecting a lot out of the US financials. As loan-loss provisions start to wither away, earnings power becomes much greater. He is looking for explosive earnings. Will probably have to wait to see the 2nd quarter #’s in July before it breaks out of its range of $15.50-$17.
BUY
US financial ETF. US financials are probably going to do OK for the rest of the year. If you're comfortable owning US financials, this would be one of the better ones they use. Has lots of liquidity and you can do auction trading on it.
COMMENT
Financial ETF. If you are going to play US banks this is the one he would use and preferably over using individual banks. US banks are not out of the woods yet. Still have some issues. More than $1 trillion in bank reserves set aside for the commercial real estate issues.
DON'T BUY
US Financial ETF. The problem he has with this one is that it is not hedged against the US$. Way too much uncertainty.
COMMENT
US financial ETF. Prefers this broader basket. Balance sheet risks in the individual companies are hard to evaluate right now.
STRONG BUY
Likes US financials in general. There won't be the growth that there was before but the valuations across the board are a screaming buy. Too much risk within any single name.
DON'T BUY
This one is toxic. Doesn't like financials. Includes brokers/dealers as well.
DON'T BUY
A US S&P 500 Financials ETF on the broad US financials space. Very good product to get exposure to US financials. Still some questions around financials and whether they subprime mess is cleaned up. Isn't worth rushing into it yet. You are going to start to see some audited financials come out giving more disclosure in the next 2 weeks.
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