Citigroup Hits Financial ETF on Currency Fears
Financial Select Sector SPDR (XLF) fell over 1% Tuesday with top-five holding Citigroup (NYSE: C) weighing on the ETF following a report the banking giant could be on the hook for as much as $7 billion of currency losses.
Charles Peabody, an analyst at Portales Partners, forecasts Citi could lose $5 billion to $7 billion if the U.S. dollar strengthens against some foreign currencies, Bloomberg reports.
Citi is the fourth-largest holding in XLF at 6.4% of the portfolio.
XLF fell harder than the S&P 500 on Tuesday although the financial sector has been a market leader in 2013. The ETF was up 22.3% year to date as of June 10, compared with a gain of 16.2% for the S&P 500, according to Morningstar. [Financial ETF Challenging for 2013 Sector Leadership]
Citigroup shares were off more than 3% on Tuesday.
Financial Select Sector SPDR
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