As I’ve mentioned here before, I am really leaning in to the idea that many exchange-traded funds (ETFs), while they are well-run vehicles, tend to mimic each other’s performance too closely. This is a macro market issue, not an ETF-specific one. But it challenges investors and traders to really know not only what they own, but whether it is responsible for its own movement.
Here’s what I mean. The financial sector is currently a house divided, with investors caught between a specific industry-driven narrative and the powerful gravitational pull of the interest rate cycle. While the Financial Select Sector SPDR (XLF) has lagged the broader market this year, a potential rally is brewing.
