US Financial Sector Performance Review, Week Ended September 11



Financials end flat for week ended September 11

The Financial Select Sector SPDR ETF (XLF) mainly holds large-cap US financial stocks in its portfolio. The fund invests in an array of financial service firms ranging from investment banks, commercial banking, mortgage finance, REITs, consumer finance, and insurance.

XLF invests heavily in banks, which form 47.91% of its portfolio. REITs, diversified financial services firms, commercial finance firms, insurance, real estate, and savings and loans sectors have weights of 19.21%, 10.17%, 1.29%, 18.22%, 0.25%, and 0.82%, respectively, in the XLF portfolio.

The ETF ended flat in the week ended September 11, rising a mere 0.04%. In comparison, the SPDR S&P 500 ETF (SPY), which serves as a barometer for the US broad markets, rose 2.15% during the week. Year-to-date, XLF has shed 6.92% of its value.

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Performance of subgroups

Savings and loans was the best performing subgroup during the week ended September 11, followed by diversified financial services stocks. Savings and loans rose 2.31%, while the diversified financial services subgroup rose 1.17% in value.

REITs fell 0.23% on average, while real estate stocks closed flat, falling 0.03%.

The best-performing stock within the ETF was E*Trade Financial (ETFC), which rose 5.86% after the company announced plans to restructure its balance sheet. This was followed by Assurant (AIZ) and Intercontinental Exchange, which rose 5.05% and 3.20%, respectively.

REITs continued to lose money in the wake of the upcoming Fed meeting. Crown Castle fell 4.48% last week followed by Ventas ( VTR), which shed 3.29% of value.


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