XLF declined 3.4% amid financial sector weakness. JPMorgan Chase, a major component of the Financial Select Sector SPDR Fund, experienced a slide as credit fears grew. Additionally, XLF saw unusually large options trading activity on Monday, with traders acquiring 257,668 put options on the fund, representing a 40% increase compared to the average volume of 183,420 put options. This elevated put option activity suggests increased hedging or bearish positioning by traders. XLF opened at $50.73 on Tuesday, with a 1-year low of $42.21 and a 1-year high of $56.51. The fund has a market cap of $52.48 billion and a beta of 0.99. Institutional investors own 72.51% of the fund.
Read full analysisXLF declined 3.4% amid financial sector weakness. JPMorgan Chase, a major component of the Financial Select Sector SPDR Fund, experienced a slide as credit fears grew. Additionally, XLF saw unusually large options trading activity on Monday, with traders acquiring 257,668 put options on the fund, representing a 40% increase compared to the average volume of 183,420 put options. This elevated put option activity suggests increased hedging or bearish positioning by traders. XLF opened at $50.73 on Tuesday, with a 1-year low of $42.21 and a 1-year high of $56.51. The fund has a market cap of $52.48 billion and a beta of 0.99. Institutional investors own 72.51% of the fund.
XLF is the largest financial sector ETF, tracking major U.S. banks, insurers, and financial services firms including JPMorgan, Berkshire Hathaway, and Visa. It serves as the primary benchmark for financial sector performance and is heavily weighted toward money-center banks. Growing credit fears around its largest holdings and a broader risk-off rotation away from cyclical sectors are driving the current two-day selloff.