You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Goldman Sachs Group, Inc. (GS) - free report >>
Bank of America Corporation (BAC) - free report >>
JPMorgan Chase & Co. (JPM) - free report >>
State Street Financial Select Sector SPDR ETF (XLF) - free report >>
Image: Bigstock
Financial ETF (XLF) Touches New 52-Week High
For investors seeking momentum, Financial Select Sector SPDR ETF (XLF - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 29% from its 52-week low of $40.66 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
XLF in Focus
Financial Select Sector SPDR Fund offers exposure to companies in the financial services, insurance, banks, capital markets, mortgage real estate investment trusts (“REITs”), and consumer finance. It charges 8 bps in annual fees (see: all the Financials ETFs here).
Why the Move?
The broad financial space has been an area to watch lately, given the surge in bank stocks. U.S. banking giants, including JPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) and Goldman Sachs (GS - Free Report) , announced dividend hikes and new share buybacks after passing the Fed's stress test. The test showed banks hold strong capital buffers.
More Gains Ahead?
Currently, XLF has a Zacks ETF Rank #1 (Strong Buy), suggesting that the outperformance could continue in the months ahead. Many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.