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Financial Select Sector SPDR ETF Message Board

  • topinvestgun1 topinvestgun1 Jan 6, 2014 12:25 PM Flag

    Why XLF does not rise corresponding to JPM, C, BAC, GS, WFC

    I see JPM, C, BAC, GS rose on average 0.54, 1.08, 1.25, 0.77, 0.26 correspondingly. Why XLF is not reflecting the rise in the neighbourhood of 0.8? Will the Fund pocket some of the profits to its own account or reflect less in the index? Any rule governing the fund not able to divert profit to its own company account? Never buy ETF but the bank sector is strong up till March, I am considering buy this index instead if good governance exists. I understand funds buy ETF as well. Presumably they know what they are doing. Any advise and explanation would be appreciated.

    Sentiment: Strong Buy

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    • b/c it is a POS
      I came back here looking for a short in the near future.
      and its only 22 less than half of its old highs
      I wont even bother
      too many other high flyers that will drop a lot more when mkt turns.

      • 1 Reply to huber714
      • That's long-term bullish. The reason financials haven't risen as fast is this:

        "But the banking sector has screamed up the charts, and not counting the always-hated federal government, it was No. 2 with a bullet as of Gallup's most recent poll, taken way back in August 2012. Fifty-three percent of Americans surveyed had a negative view of banks in that poll, up from just 18 percent in 2007, before the crisis. The percentage of people with a positive view of banking has plunged to 25 percent from 50 percent in 2007."

        It's still a hated sector. People hate it and don't trust it. That's why it's still relatively cheap. A lot of Americans got wiped out in bank stocks. It will take time for that sentiment to improve and investors again want to own bank stocks in the US.

 
XLF
22.08-1.25(-5.36%)Jun 24 4:00 PMEDT