To The Moon

🌟🌟🌟The US Financial Sector is the pillar and bellwether of the US economy.  $Financial Select Sector SPDR Fund(XLF)$ is the largest ETF in this sector with Assets Under Management of USD 43.47 billion.  XLF also holds a Zacks ETF rank of 1 which is a strong buy, based on its expected asset class return, low expense ratio and upward momentum.

In just 1 trade, I gain access to the largest US financial institutions within the S&P500 universe. 

The Top 10 holdings include Berkshire Hathaway, JP Morgan, Visa Inc, Mastercard Inc, Bank of America, Wells Fargo, Goldman Sachs, S&P Global, American Express and Progressive Corp.

The Top 10 holdings take up 54% of the ETF weightage.  Total number of holdings is 73.  The expense ratio is a low 0.09%.  Dividends are paid every 3 months.  The current dividend yield is 1.55%.  XLF goes ex dividend on September 23 2024.

$Berkshire Hathaway(BRK.B)$ is the Top holding at 13% weightage.  This is Warren Buffett 's flagship company and its  share price is up 23.7% year todate.  This is a much better performance than $SPDR S&P 500 ETF Trust(SPY)$  which is only up 18.2% year todate. Berkshire' s market capitalisation is currently USD 969.03 billion.  It won't be too long before it joins the Trillion Dollar Club. 

Berkshire has recently sold a significant portion of its $Apple(AAPL)$  shares as well as $Bank of America(BAC)$ , boosting its cash reserves to a record USD 277 billion.  This aligns with Warren Buffett's strategy of maintaining strong liquidity during uncertain times.

$JPMorgan Chase(JPM)$  is the largest US Bank with nearly USD 3.4 trillion in assets.  It has a vast network of over 4,800 physical branches.  Together with Bank of America, Wells Fargo and Citibank, JP Morgan is part of  the Big 4 Banks in the US.

Visa is the biggest credit card company in the world as it powers 4.3 billion cards globally and process more than USD 15 Trillion in payments.  Mastercard is its closest competitor.  Both Visa and Mastercard are the most widely accepted credit cards in the world in over 200 countries and more than 110 million merchants.

Performance wise XLF is up 2.9% in the past 5 trading days and has risen 16% year todate.  In 2023 XLF is up 29%.  But if we look further back to 5 years ago, XLF has jumped 68%.  Since its inception in December 1998, XLF has skyrocketed 179%.  XLF has recently reached its all time high at USD 44.10.

Wall Street Analysts are bullish on XLF with an average price of USD 47.26, an upside potential of 7.7% according to 56 Analysts surveyed by Tipranks.

I have invested in XLF since 2022 and seen its share price grow slow and steadily during the period.  I am happy with its performance and believe that XLF will continue to grow exponentially in the future.  The US is the world's largest economy and its financial institutions especially its stock exchanges are its pillar and foundation of its wealth and success. 

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