What Is XLF? Financial Select Sector SPDR Fund
Short answer
XLF is the Financial Select Sector SPDR Fund, a fund that tracks the financials sector of the S&P 500 at a 0.08% expense ratio. It holds the large US banks, insurers, payment networks, and asset managers (BRK.B, JPM, V, MA), so it is a sector bet on financials rather than a broad-market core. Versus VOO, XLF strips out everything except financials, which makes it more sensitive to interest rates, credit cycles, and bank earnings.
What does XLF hold? (top 10)
Approximate weights as of early 2026; refresh quarterly from the issuer's fund page. Tickers link to the individual stock guide in Walnut.
The bottom line on XLF
XLF is a low-cost way to express a sector view on US financials in one ticker, dominated by the big banks, insurers, and payment networks. It works as a sector tilt sized around a broad core like VOO, not as a diversified holding, and it moves with rates and the credit cycle more than the overall market.
Build a portfolio around XLF with Walnut
Use XLF as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is XLF?
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XLF is the Financial Select Sector SPDR Fund, a single ticker that holds the financials sector of the S&P 500: large US banks, insurers, payment networks, asset managers, and exchanges. It is a sector fund, so it tracks financials rather than the broad market.
What is XLF's expense ratio?
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0.08% per year (8 basis points) as of early 2026. On a $10,000 investment, that is about $8 per year in fees, low for a sector ETF. Verify the current figure on the State Street site.
What companies are in XLF?
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The financials of the S&P 500, led by Berkshire Hathaway, JPMorgan Chase, Visa, Mastercard, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley, S&P Global, and American Express. Berkshire and the big banks plus payment networks dominate. Weights are approximate, verify on the issuer's site.
XLF vs VOO: what's the difference?
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VOO holds all 11 sectors of the S&P 500. XLF holds only the financials sector. So XLF is a concentrated sector bet that rises and falls with banks, insurers, and payment companies, while VOO is diversified across the whole index. Walnut is not an investment adviser, so this is not a recommendation.
Does XLF pay a dividend?
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Yes, quarterly. The trailing yield is approximately 1.4% as of early 2026, drawn from the dividends of the banks, insurers, and other financials it holds. Many financial companies are established dividend payers.
What drives XLF?
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Financials are sensitive to interest rates, the shape of the yield curve, loan growth, credit quality, and capital markets activity. Rising rates can help bank net interest margins, while credit stress or a slowing economy can weigh on the sector. XLF moves with these factors more than the broad market does.
Does XLF include Berkshire Hathaway?
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Yes. Berkshire Hathaway is classified in the financials sector and is typically the largest holding in XLF, often around 13%. Because Berkshire is itself a diversified holding company, it gives XLF some exposure beyond pure banking.
What is XLF's AUM?
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Approximately $50 billion as of early 2026, which makes it one of the largest sector ETFs. The exact figure moves with markets and flows, so verify on the State Street site.
When was XLF created?
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December 1998. XLF is one of the original Select Sector SPDR funds State Street launched to let investors isolate individual S&P 500 sectors, and it is the standard vehicle for financials exposure.
How do I buy XLF?
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XLF trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, or others. Fractional shares are supported at most modern brokers. Connect your broker to Walnut and the AI can show how a financials tilt like XLF fits with your core.
Is XLF a good investment?
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XLF gives a low-cost sector bet on US financials, which is more rate- and credit-cycle-sensitive than the broad market. Whether it fits depends on your view of financials, your time horizon, and what else you own. Walnut is not an investment adviser, so this is not a recommendation.
Related ETFs
Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against State Street SPDR's fund page or your broker before investing.