Financial movements in the second quarter of the year have been tumultuous, with the Financial Select Sector SPDR Fund ETF (NYSEARCA:XLF) experiencing a 1.9% decline since April, contrasting the S&P 500's overall 4.1% rise. Industries Q2 Performance saw Financial Services plummet by 3.1%, followed by insurance at a 2.3% decline, while banks managed a modest 1.5% increase.
Weekly U.S. stock fund flows into the financials sector have been unpredictable, with the financials-focused ETF reporting net flows of $1.3B as of June 28.
Top 5 Movers in Q2
Gainers
- Synchrony Financial (SYF) +9.4%
- Arch Capital (ACGL) +9.1%
- Goldman Sachs (GS) +8.3%
- Moody's Corporation (MCO) +7.1%
- Bank of America (BAC) +4.9%
Losers
- Globe Life (GL) -29.3%
- Franklin Resources (BEN) -20.5%
- MSCI (MSCI) -14%
- PayPal (PYPL) -13.4%
- Aon (AON) -12%
Analysts have mixed expectations for the financial sector, with SA analyst, Sensor Unlimited, downgrading the sector to Hold citing expensive valuation and reduced rate cut possibilities. Real Investments expressed concerns about the banking sector, pointing out unrealized losses and challenges in commercial real estate.
Quantitative Measures indicate that XLF received a Buy rating from SA quant system with a score of 3.93. Risk was graded at D+, momentum at A-, dividends at B, liquidity at A+, and expenses at A+.