Average Daily Volume
55.97M
Fund Overview
The Financial Select Sector SPDR Fund (XLF) is an exchange-traded fund (ETF) that seeks to provide investment results that correspond generally to the price and yield performance of the Financial Select Sector Index. This index includes companies from the financial sector of the S&P 500, such as banks, insurance companies, and diversified financial services firms. XLF is one of the most widely traded ETFs focusing on the financial sector, offering investors exposure to large-cap U.S. financial stocks. The fund is designed to provide a cost-efficient and liquid way to invest in the financial services industry.
- Asset Class
-
Equity
- Industry
-
Broad Financials
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.33 %
- Currency Hedged
-
No
- Portfolio Turnover
-
3 %
- Dividend Date
-
Why Invest in the XLF ETF?
Potential Benefits
- Provides diversified exposure to large-cap U.S. financial sector companies, including banks, insurance firms, and investment services.
- Highly liquid with tight bid-ask spreads, making it easy to trade.
- Low expense ratio compared to many actively managed financial sector funds.
- Tracks a well-known and transparent index, the Financial Select Sector Index.
- Offers potential for capital appreciation and dividend income, as many financial stocks pay dividends.
Potential Risks
- Sensitive to interest rate changes, which can impact profitability for banks and financial institutions.
- Exposure to regulatory and legislative risks, as financial firms are heavily regulated.
- Vulnerable to economic downturns, which can lead to higher loan defaults and lower earnings.
- Concentration risk, as the fund is heavily weighted toward a few large financial institutions.
- Performance may lag during periods of financial market instability or crises.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-2.4%
|
-3.8%
|
-3.5%
|
+5.6%
|
-1.1%
|
+4.3%
|
+6.2%
|
+1.4%
|
-7.1%
|
+0.2%
|
-
|
-
|
| 2025 |
+6.5%
|
+1.4%
|
-4.2%
|
-2.1%
|
+4.5%
|
+3.1%
|
0.0%
|
+3.1%
|
+0.1%
|
-2.8%
|
+1.8%
|
+3.1%
|
| 2024 |
+3.1%
|
+4.1%
|
+4.8%
|
-4.2%
|
+3.2%
|
-0.9%
|
+6.4%
|
+4.6%
|
-0.6%
|
+2.6%
|
+10.5%
|
-5.5%
|
| 2023 |
+6.9%
|
-2.3%
|
-9.6%
|
+3.2%
|
-4.3%
|
+6.6%
|
+4.8%
|
-2.7%
|
-3.1%
|
-2.4%
|
+10.9%
|
+5.3%
|
| 2022 |
0.0%
|
-1.4%
|
-0.1%
|
-9.9%
|
+2.8%
|
-10.9%
|
+7.2%
|
-2.0%
|
-7.7%
|
+11.9%
|
+6.9%
|
-5.2%
|
| 2021 |
-1.8%
|
+11.6%
|
+5.9%
|
+6.5%
|
+4.8%
|
-3.0%
|
-0.5%
|
+5.1%
|
-1.8%
|
+7.3%
|
-5.7%
|
+3.4%
|
| 2020 |
-2.7%
|
-11.2%
|
-21.0%
|
+9.5%
|
+2.7%
|
-0.5%
|
+3.8%
|
+4.3%
|
-3.4%
|
-0.9%
|
+16.8%
|
+6.3%
|
| 2019 |
+8.9%
|
+2.2%
|
-2.6%
|
+9.0%
|
-7.2%
|
+6.7%
|
+2.4%
|
-4.7%
|
+4.5%
|
+2.5%
|
+5.1%
|
+2.6%
|
| 2018 |
+6.6%
|
-2.9%
|
-4.2%
|
-0.4%
|
-1.0%
|
-1.7%
|
+5.1%
|
+1.4%
|
-2.2%
|
-4.7%
|
+2.6%
|
-11.1%
|
| 2017 |
+0.3%
|
+5.3%
|
-3.0%
|
-0.8%
|
-1.2%
|
+6.5%
|
+1.7%
|
-1.6%
|
+5.1%
|
+2.9%
|
+3.5%
|
+1.9%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
BRK-B
|
BERKSHIRE HATHAWAY INC CLASS B |
14.4 % |
|
JPM
|
JPMORGAN CHASE & CO |
9.9 % |
|
V
|
VISA INC CLASS A |
8.6 % |
|
MA
|
MASTERCARD INC CLASS A |
6.3 % |
|
BAC
|
BANK OF AMERICA CORP |
3.7 % |
|
WFC
|
WELLS FARGO & CO |
3.3 % |
|
GS
|
THE GOLDMAN SACHS GROUP INC |
2.4 % |
|
PGR
|
PROGRESSIVE CORP |
2.4 % |
|
SPGI
|
S&P GLOBAL INC |
2.3 % |
|
AXP
|
AMERICAN EXPRESS CO |
2.2 % |
Top 10 holdings shown, out of 75 total holdings.
Related ETFs: XLF vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XLF tracks the Financial Select Sector Index, which includes financial stocks from the S&P 500. The index is market-cap weighted, meaning larger companies have a greater influence on performance. The fund primarily holds common stocks of U.S. financial firms, including major banks like JPMorgan Chase and Bank of America, as well as insurance giants like Berkshire Hathaway. XLF is passively managed and rebalances quarterly to align with the index composition.
Frequently Asked Questions
What types of companies are included in XLF?
XLF includes large-cap U.S. financial firms such as banks (e.g., JPMorgan Chase, Bank of America), insurance companies (e.g., Berkshire Hathaway, Chubb), and diversified financial services firms (e.g., Goldman Sachs, Morgan Stanley).
Does XLF pay dividends?
Yes, XLF pays dividends quarterly, as many financial stocks in its portfolio are dividend-paying companies.
How does XLF perform during rising interest rates?
XLF may benefit from rising interest rates, as banks and financial institutions often see improved net interest margins, boosting profitability.
Is XLF a good long-term investment?
XLF can be a good long-term investment for those bullish on the financial sector, but it carries cyclical risks tied to economic conditions and regulatory changes.
Industry Overview
The Financial Select Sector SPDR Fund (XLF) provides targeted exposure to the U.S. financial services industry, which includes banks, insurance companies, and diversified financial firms. The financial sector is a critical component of the economy, often benefiting from rising interest rates and economic growth. However, it can also be volatile during economic downturns or financial crises. XLF offers investors a way to gain broad exposure to this sector without having to pick individual stocks. The fund's performance is closely tied to the health of the financial markets and regulatory environment.
Alternative Comparison
Compared to VFH (Vanguard Financials ETF), XLF has a slightly lower expense ratio and higher liquidity, making it a preferred choice for active traders. Unlike KBE (SPDR S&P Bank ETF), which focuses exclusively on banks, XLF provides broader exposure to the entire financial sector, including insurance and diversified financial services firms. XLF's market-cap weighting also differentiates it from equal-weighted alternatives like RWW (Invesco S&P 500 Equal Weight Financials ETF).
Issuer Overview
XLF is issued by State Street Global Advisors (SSGA), one of the largest ETF providers in the world. SSGA is known for its SPDR family of ETFs, which includes some of the most widely traded funds. The firm has a strong reputation for providing low-cost, index-based investment solutions with high liquidity and transparency.
Conclusion
XLF is a well-established ETF offering efficient exposure to the U.S. financial sector. Its low cost, liquidity, and diversified holdings make it a solid choice for investors seeking broad financial sector exposure. However, investors should be aware of the risks tied to interest rates, regulation, and economic cycles.
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