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Select Sector Financial Slct Str SPDR Fd (NYSEARCA:XLF) Collected $4 billion This Year But Has Also Suffered Decline

Posted in Markets2 years ago • Written by Robin FlemingNo Comments

Dallas, Texas, 09/30/2013 (ustrademedia) – Select Sector Financial Slct Str SPDR Fd (NYSEARCA:XLF) incorporated in USA is the largest exchange traded fund (ETF) with an objective to provide the results of investment which correspond to the Financial Select sector’s performance. The business of the financial services firms listed in the Index ranges from investment management to business and commercial banking.

XLF, the financial service ETF, has been a strong performer throughout the most part of this year but the recent price cutback in the ETF has led to a fall to the fourth place in between the nine SPDR ETFs on the basis of year-to-date. On a weekly research, on the outstanding changes in shares among the ETFs covered at ETF Channel in the world, it is found that the Financial Select Sector SPDR Fund (XLF) has shed off 25.4 million shares, i.e. a 3.2% decrease on a weekly basis.

XLF and the other bank ETFs have been rewarded by the investors with a huge amount of inflows which have helped XLF to collect over $4 billion this year. This has not only placed XLF ahead of many other sector funds, but has also ranked it among the top-10 asset gathering ETFs. Amongst the wave of market weakness, in the last week XLF tried to sell off some shares so as to come out of the bear flag formation, which affected its performance. Since November 2012, for the first time in the last week XLF was found trading below its 100-day simple moving average.

Both technical and news-driven news have been received regarding the continuation of the recent declines by XLF and other rival financial services. This has further affected the business, as due to the effect of the news, XLFs fourth largest holding Citigroup (NYSE:C), holding a weight of 6.2%, has almost lost 3% in the past five days of trading. Other components of XLF, such as Goldman Sachs, JPMorgan Chase, and, Wells Fargo, holding a combined weight of approximately 19%, lost by 2.7%, 2.5% and 1.3% in trading. But aggressive traders have found profit in such fall and are expecting further decline in the financial service sector.

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