About XLF ETF
The State Street Financial ETF (XLF) has investments in financial services firms whose business range from investment management to commercial & business banking and is managed by State Street Global Advisors that has a total AUM of $2.73T.
XLF is an exchange-traded fund incorporated in the USA in Dec 1998. It has invested in companies in the diversified financial services, insurance, banks, capital markets, mortgage real estate investment trusts ("REITs"), consumer finance, and thrifts and mortgage finance industries.
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
The ETF tracks the performance of the Financial Sector Index that holds large-cap U.S. banking and financial stocks.
XLF has invested 100% of its assets in the financial sector.
XLF has invested 98% of its assets in the U.S. and only 2% in the U.K.
XLF offers exposure to the heavyweights in the US financials segment. Its market cap-weighted, S&P 500-only portfolio means that it's concentrated in large banks and avoids small and mid-cap firms.
According to ETFdb.com, "Investors should note that XLF pays out a decent dividend, which may provide steady income in times of market downturns."
1. Fund Factsheet
2. Should You Buy the Financial Select Sector SPDR Fund (XLF)? 3 Pros, 3 Cons
3. Time To Target Financials Again? (XLF)
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house research/quant analysts team. XLF is large and massively liquid, far outpacing its competitors in trading volume. A low fee and tight tracking round out the package of very low all-in costs thus helping in the selection. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.