Financial SPDR Trading - ETF Trading
Financial Sector SPDR Fund Trading
Financial Sector SPDR Defined and Explained
The Financial Sector SPDR ETF (symbol XLF) is an exchange-traded fund that tracks the performance of the S&P's financial sector index. This index is made up of financial services companies, including commercial banks, capital markets, insurance companies, and mortgage finance companies.
The top ten holdings of the Financial Sector ETF comprise about half of the value of the fund.
Financial Sector SPDR Prices/Rates
ETF Traders can find Financial Sector prices online and in all major newspapers. Although it might seem like this ETF would be interest-rate sensitive, the XLF's correlation to the bond market is actually negative. Also, stocks in the financial sector have a lower correlation to the bond market now than they did in the past.
Financial Sector SPDR ETF Trading Software
Knowing what is going to happen in the market is critical to profitable ETF trading. VantagePoint software forecasts the Financial sector ETF high and low for the next day with a very high accuracy, so you'll know where to put your stops and whether to tighten up on them or get out of the trade immediately.
Using forecasts of market trend direction in conjunction with predicted highs and lows greatly increases the potential for successful Financial Sector ETF trades. VantagePoint even allows you to visualize forecasts and indicators graphically on your computer for ease of use.
Financial Sector SPDR ETF Trading News
The Financial Sector ETF index is followed in the Wall Street Journal and all other major newspapers. The Financial Sector ETF price trends are given. The Australian Associated Press reports on the major events in the trading market, making it a valuable resource for investors.
Financial Sector SPDR ETF Trading Information
On the whole, The Financial Sector ETF outperformed the S&P 500 during the last major market downturn. However, this sector tends to be an underperformer in a rising interest rate environment.
The yield curve for the Financial Sector ETF remains relatively steep so ETF traders should watch out for sector trends.