There’s hypothesis the Silicon Valley Bank collapse might 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,'” Davi, who runs the AXS Astoria Inflation Sensitive ETF, informed CNBC’s “ETF Edge” this week. The fund is an ETF.com 2023 “ETF of the Year” finalist.
Davi contends the Financial Select Sector SPDR ETF (XLF) might be among the many greatest near-term laggards. It tracks the S&P 500 monetary index.
His agency bought the ETF’s positions in regional banks this week and purchased bigger cap banks, in keeping with Davi. He sees larger establishments as a extra secure, multiyear funding.
The XLF ended the week greater than 3% decrease. It’s down virtually 8% for the reason that SVB collapse March 10.