FYI: A brief steepening of the yield curve two weeks ago was enough to send U.S. financial stocks sharply higher, leading the S&P 500 in gains at times, and fueling talk that perhaps the beleaguered sector is finally going to break out.
In the past week alone, investors poured almost $600 million into the Financial Select Sector SPDR Fund (XLF) as 10-year Treasury yields inched ever so slightly higher. That’s noteworthy, because the prevailing flows trend for XLF this year has been negative, with the $22 billion fund now sitting with $3.5 billion in net redemptions year to date.
Other financials ETFs, particularly those focused on banks, have also struggled to find new assets despite what’s been a relatively good performance, all things considered.
Regards,
Ted
https://www.etf.com/sections/features-and-news/financials-etfs-flux?nopaging=1
