There’s speculation the Silicon Valley Bank collapse could expose problems lurking in ETFs tied to specific sectors.
Astoria Portfolio Advisors CIO John Davi has financials topping his watch list.
Davi contends the Financial Select Sector SPDR ETF (XLF) could be among the biggest near-term laggards. It tracks the S&P 500 financial index.
His firm sold the ETF’s positions in regional banks this week and bought larger cap banks, according to Davi. He sees bigger institutions as a more stable, multiyear investment.
The XLF ended the week more than 3% lower. It’s down almost 8% since the SVB collapsed March 10.