- The oldest Financial sector ETF available has underperformed an S&P 500 index fund by 2.30% CAGR over the last 20 years
- There are currently 32 Financial sector ETFs available; 16 of these are 10 years old or older
- Why this Deep Value ETF Accumulator does not invest in Financial sector ETFs
The Financial Select Sector SPDR® Fund (XLF) is the oldest available Financial sector ETF. Its’ inception date was December 16, 1998. The Great Financial Crises of 2007-2009 decimated this sector of the market. Because the Financials were the most severely wounded sector, the associated ETFs have failed to keep up with the returns of the broad U.S. Markets or any other sector of the market. Therefore, investors will find it difficult to find a “good” Financial sector ETF with a history of great returns. This is why you will see the XLF ETF significantly lagging the S&P 500 in the following charts.
XLF vs S&P 500 index fund: January 1999 – November 2018
Source: https://www.portfoliovisualizer.com/
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