To The Moon

🌟🌟🌟I am a long term investor of $Financial Select Sector SPDR Fund(XLF)$ as I believe that XLF is the bellwether of the US economy and will continue to grow slow and steady in the future.

In just 1 trade I gain instant access to the Top Financial Institutions in the US.  The Top 10 holdings include $Berkshire Hathaway(BRK.B)$ , $JPMorgan Chase(JPM)$  Visa, Mastercard, $Bank of America(BAC)$  $Wells Fargo(WFC)$  S&P Global, Goldman Sachs, American Express and BlackRock.

The Top 10 holdings weightage is 54%.  Total number of holdings is 74.  The expense ratio is 0.10%.  Distributions are paid quarterly.  The current distribution yield is 1.60%.

Performance wise, XLF is up 3.9% in February and also up 6.8% year todate.  In the past year, XLF is up 13.8%.

Berkshire Hathaway was in the spotlight recently with a excellent Q423 earnings.  It delivered operating earnings of USD 8.5 Billion for the quarter which is an increase of 28%.  It almost reached USD 1 Trillion in market capitalisation and is ranked 7th in the S&P500 Index.  Warren Buffett has been running Berkshire since 1965 and together with Charlie Munger, have made Berkshire very successful due to their focus on value investing, buying wonderful stocks at fair prices and holding them long term.  Berkshire is the Top holding of XLF with a 13.3% weightage. 

The Big 4 US Banks are also in the ETF with JP Morgan, the largest bank, followed by Bank of America, Wells Fargo and Citigroup. 

Then there are the major credit card companies Visa, Mastercard and American Express which have done very well and hitting their 52 weeks high this year.  Higher interest rate margins have allowed these major credit card companies to generate returns that are significantly higher than other bank activities. 

Then there are the major fund managers such as BlackRock, Blackstone and Charles Schwab.  BlackRock has done well this year due to its Spot Bitcoin ETF  IBIT which is up 21% in just 5 days.  Blackrock is also the world's largest fund manager with Assets Under Management of USD 9.1 Trillion. 

While I don't expect fireworks in this ETF, I believe that XLF ETF will continue to grow steadily over the long term horizon.  In the process, I love collecting the dividends which are as regular as the clockwork and is a great source of passive income. 

Investing in XLF gives me peace of mind as the powerful combination of the best US Financial Giants will continue to produce great value for my hard earned dollars while waiting for capital growth. 

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