There has been speculation that SVB’s collapse could expose problems lurking in industry-specific ETFs.
John Davi, chief information officer at Astoria Portfolio Advisors, put financials at the top of his watch list.
“You need to be mindful of your risk,” says Davi, who runs the firm AXS Astoria Inflation Sensitive ETFtold CNBC’s “Advantages of ETFsThis week. The fund is a finalist for ETF.com’s 2023 “ETF.”
david thinks Financial Select Sector SPDR ETF (XLF) Possibly one of the biggest laggards of late. It tracks the S&P 500 Financial Index.
According to Davi, his firm sold ETF positions in regional banks this week and bought banks with larger market capitalizations. He sees larger institutions as more stable multi-year investments.
XLF closed the week down more than 3%. Since SVB collapsed on March 10, it has fallen nearly 8%.