What Is XLF? Financial Select Sector SPDR Fund
Last updated July 2026
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.
XLF is issued by State Street SPDR and tracks Financial Select Sector. It charges a 0.08% expense ratio, holds approximately ~$50 billion in assets under management, yields about ~1.4%, and launched in December 1998.
What is XLF?
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.
XLF is issued by State Street SPDR and tracks Financial Select Sector, so a single ticker gives you the whole portfolio of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
What does XLF hold?
XLF is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of XLF | |
|---|---|---|---|---|
| 1 | BRK.B | Berkshire Hathaway | ~13% | |
| 2 | JPM | JPMorgan Chase | ~10% | |
| 3 | V | Visa | ~8% | |
| 4 | MA | Mastercard | ~7% | |
| 5 | BAC | Bank of America | ~4% | |
| 6 | WFC | Wells Fargo | ~4% | |
| 7 | GS | Goldman Sachs | ~3% | |
| 8 | MS | Morgan Stanley | ~3% | |
| 9 | SPGI | S&P Global | ~3% | |
| 10 | AXP | American Express | ~3% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
How do I invest in XLF?
There are three common ways to get XLF exposure. Buy shares (or fractional shares) of XLF directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so XLF sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. XLF trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is XLF a good buy?
Whether XLF is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Financial Select Sector, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLF a buy?
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.
More on XLF
Whether XLF is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLF a buy?
XLF yields ~1.4% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see XLF dividend: yield and schedule.
New to funds like XLF? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how XLF fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in XLF with AI
Connect the broker you already use and ask Walnut's AI how XLF fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
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.
How do I compare XLF to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. XLF's figures are above; the full method is in Walnut's guide on how to compare ETFs.
Guides that feature XLF
XLF is one of the names covered in these guides. Each one puts the fund next to its peers so you can see where it fits rather than judging it alone.
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.