XLF has underperformed the broader market in 2015
In this part of the series, we’ll take a closer look at the performance of the US banking sector during the year so far. Banks have been volatile in 2015 despite robust fundamentals.
The Financial Select Sector SPDR ETF (XLF) mainly holds large-cap (large capitalization) US financial stocks in its portfolio. The fund invests in an array of financial service companies from subsectors such as investment banking, commercial banking, mortgage finance, REITs, consumer finance, and insurance.
XLF heavily invests in banks, which form 47.9% of its portfolio. The ETF has returned -1.9% YTD (year-to-date). In comparison, the iShares Dow Jones US Financial Services ETF (IYF) has returned 0.9% YTD, and the Vanguard Financials ETF (VFH) has returned 0.5% YTD.
During the year so far, XLF has also underperformed the broader market, represented by the SPDR S&P 500 ETF (SPY). SPY has returned 0.9% in 2015 so far, while investors in XLF have lost money.
Among XLF’s 87 stocks, 51 have generated negative returns YTD, while 36 stocks have generated positive returns. YTD, Genworth Financial (GNW) and Navient (NAVI) have been the worst performers within XLF. They have plunged 45% and 44%, respectively, during the year so far.
In contrast, Chubb (CB) and Public Storage have been outperformers and have gained 24.2% and 22.4%, respectively, during the same period.
Read on to know more about analysts’ views and valuations of stocks within XLF.