There’s hypothesis the Silicon Valley Bank collapse may expose issues lurking in ETFs tied to particular sectors.
Astoria Portfolio Advisors CIO John Davi has financials topping his watch checklist.
“You need to be mindful of your risk,” David, who runs the AXS Astoria Inflation Sensitive ETF, advised CNBC’s “ETF Edge” this week. The fund is an ETF.com 2023 “ETF of the Year” finalist.
David contends the Financial Select Sector SPDR ETF (XLF) could possibly be among the many largest near-term laggards. It tracks the S&P 500 monetary index.
His agency offered the ETF’s positions in regional banks this week and purchased bigger cap banks, in line with Davi. He sees larger establishments as a extra secure, multiyear funding.
The XLF ended the week greater than 3% decrease. It’s down nearly 8% for the reason that SVB collapse March 10.