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XLF’s Diversified Financial Services Subgroup Rises 2.1%

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Diversified financial services subgroup rose on Wednesday

US markets rallied during intraday trading on November 18 as investors welcomed a stronger possibility of a Federal Reserve rate hike in December. Diversified financial services stocks within the Financial Select Sector SPDR Fund (XLF) rose 2.1%, slightly outperforming the broad market-based SPDR S&P 500 ETF (SPY). Diversified financial services companies constitute 10.2% of XLF. Asset managers and custodian banks stood out within the subgroup, rising 2.7% on November 18. The worst performers were specialized finance companies such as Nasdaq, Intercontinental Exchange, and CME Group.

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Stock performance

All of the stocks within the diversified financial services subgroup delivered positive returns during the day. Affiliated Managers Group (AMG) and Legg Mason (LM) were the clear leaders, rising 3.5% and 3.2%, respectively. Meanwhile, Intercontinental Exchange (ICE) rose the least by 0.6% and was followed by CME Group (CME), which rose 1.0%. On a YTD (year-to-date) basis, these stocks have risen 20.2% and 8.5%, respectively.

Other stocks that have posted major gains during the year include the following:

  • E*Trade Financial—22.5% YTD
  • Nasdaq—22.4% YTD

Within the diversified financial services group, eight stocks are currently trading above their 100-day, 50-day, and 20-day moving averages. BlackRock (BLK) closed at $360.63 on November 18 and is trading 9.2% , 9.5%, and 3.1% above its 100-day, 50-day, and 20-day moving averages, respectively. Meanwhile Intercontinental Exchange closed at $263.6 and is trading 10%, 7.7%, and 1.9%, above its 100-day, 50-day, and 20-day moving averages, respectively.

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