Financial ETFs Brace for Earnings Reports

The WSJ’s John Spence writes that the popular exchange traded funds that focus on financial stocks will be put to the test by this week’s earnings announcements.

The $7 billion Financial Select Sector SPDR Fund (XLF) is expected to be particularly sensitive to the earnings news of large banks due to the fund’s concentrated exposure to Wall Street.

Top holdings for XLF include JP Morgan Chase (11.6%), Bank of America (10.9%) and Wells Fargo (9.7%).  JP Morgan reported earnings last Friday while Bank of America and Wells Fargo are scheduled to report earnings today before the market opens.

Other financial ETFs mentioned in the Spence piece include the Direxion Daily Financial Bear 3x Shares (FAZ) and SPDR KBW Bank ETF (KBE).

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