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XLF: Financial Select Sector SPDR Fund

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Steven Nickolas
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Steven Nickolas is a freelance writer and has 10+ years of experience working as a consultant to retail and institutional investors.
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Updated August 12, 2023
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JeFreda R. Brown
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Reviewed by JeFreda R. Brown
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Established on Dec. 16, 1998, the Financial Select Sector SPDR Fund (XLF) aims to provide investment results similar to the performance of the S&P Financial Select Sector Index.XLF tracks the financial sector and allocates its fund to banking, insurance, real estate investment trusts (REITs), capital markets, diversified financial services, consumer finance, real estate management, and mortgage finance industries.

Key Takeaways

  • The Financial Select Sector SPDR Fund (XLF) seeks to track the S&P Financial Select Sector Index.
  • The fund is an open-end investment entity managed by State Street Global Advisors.
  • XLF's top holdings include Berkshire Hathaway, JPMorgan Chase, Visa, Mastercard, Bank of America, S&P Global, Morgan Stanley, Goldman Sachs, and BlackRock Inc.

SPDR Fund (XLF) Top Holdings

As of July 25, 2023, the XLF Fund's top 10 holdings were:

  • Berkshire Hathaway Inc. Class B (BRK.B)
  • JPMorgan Chase & Company (JPM)
  • Visa Inc. Class A Shares (V)
  • Mastercard Inc. (MA)
  • Bank of America Corporation (BAC)
  • Wells Fargo (WFC)
  • S&P Global Inc. (SPGI)
  • Morgan Stanley (MS)
  • Goldman Sachs Group Incorporated (GS)
  • BlackRock Inc. (BLK)

The biggest holding in the Financial Select Sector Fund (XLF) is Berkshire Hathaway, with about 13% of the fund's assets.

SPDR Fund (XLF) Management and Ratings

The Financial Select Sector SPDR Fund (XLF) has a comprehensive portfolio with 72 holdings, which aids in mitigating company risks. The ETF is best suited for investors willing to take on an above-average level of risk and pursue overweight exposure to the U.S. financial services industry.

The SPDR ETF is an open-end investment company managed by State Street Global Advisors Funds Management Incorporated. XLF is listed on the New York Stock Exchange. As of July 25, 2023, XLF had $35.8 million in assets under management (AUM) with a one-year return of 10.99%. According to Morningstar, XLF provides above-average returns with average risk with a 4-star rating.

The Financial Select Sector SPDR Fund's gross expense ratio of 0.10% is low relative to other exchange-traded funds (ETFs) that track the financial sector. State Street Global Advisors can maintain that low expense ratio because it engages in securities lending.

How Do I Find the XLF Stock Price?

The price of the XLF fund is published on fund-tracking websites, such as Yahoo Finance, Nasdaq, and The Wall Street Journal. You can also find it on the website for State Street.

What Stocks Comprise XLF?

The Financial Select Sector SPDR Fund (XLF) is a basket of stocks representing investment banks, insurance funds, and other financial companies in the S&P 500. The largest single holding is Berkshire Hathaway, representing about 13% of the fund's total value.

Is XLF Actively Managed?

The Financial Select Sector SPDR Fund (XLF) is passively managed. The management firm does not attempt to pick stocks that will beat the index or outperform the wider market but only tracks a specific group of companies. This allows the fund to reflect the overall results of the finance sector while keeping fund expenses low.

The Bottom Line

The Financial Select Sector SPDR Fund (XLF) is a diversified fund that includes a variety of industries within the financial sector with strong returns and high liquidity. The Financial Select Sector SPDR Fund has a comprehensive portfolio with 72 holdings, including Berkshire Hathaway, Visa, and Mastercard.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. State Street Global Advisors. "The Financial Select Sector SPDR® Fund."

  2. Morningstar. "XLF-Performance."

  3. Nasdaq. "SPDR Select Sector Fund - Financial (XLF)."

  4. State Street. "Securities Finance."

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