Dallas, Texas 02/21/2014 (FINANCIALSTRENDS) – The $16.7 billion market capped exchange traded fund Select Sector Financial Slct Str SPDR Fd (NYSEARCA:XLF) which tracks its returns and gains against those provided by Financial Select Sector Index. The fund invests in stock of companies which are offering insurance, banking and non financial banking institutions.
In the run up to the release of the minutes of January meeting of Fed committee which advises the Fed Chairman on the taper moves, the fund has managed to trade range bound between $22.05 and $21.44 per share. The ETF which was issued by State Street SPDR and has an expense ratio of 0.18 percent boasts of investments into 82 chosen stock.
Top 5 Holdings
Its top 5 portfolios read like the who’s who of global banking, with Wells Fargo & Co constituting 8.45 percent of its total portfolio, followed by JPMorgan Chase & Co which makes up 8.09 percent of the overall fund investment. Berkshire Hathaway Inc Class B, Bank of America Corporation and Citigroup Inc are the other three financial institutions which make up the top 5 list.
Asset Allocation
Select Sector Financial Slct Str SPDR Fd (NYSEARCA:XLF) asset allocation centres around investments in U.S stocks which constitute 97 percent of the total fund value. International stock makes up the rest.
Sector and Market Cap Breakdown
As alluded to earlier, Select Sector Financial Slct Str SPDR Fd (NYSEARCA:XLF) has its investment philosophy centred around earning results from investments in Financial Services, which constitutes 85.79 percent of total holdings, where as Real Estate investments come a distant second at 11.42 percent. When the holdings of Select Sector Financial Slct Str SPDR Fd (NYSEARCA:XLF) is analyzed based on the market cap of the companies it invests into, large caps constitute 42 percent of its holdings, while the ultra large caps add up to 48.19 percent. The medium cap investments add up to just 9 percent of its total holdings.
