There’s speculation the Silicon Valley Bank collapse could expose problems lurking in ETFs tied to specific sectors.
Astoria Portfolio Advisors CIO John Davi has financials topping his watch list.
“You must be mindful of your risk,'” Davi, who runs the AXS Astoria Inflation Sensitive ETF, told CNBC’s “ETF Edge” this week. The fund is an ETF.com 2023 “ETF of the 12 months” finalist.
Davi contends the Financial Select Sector SPDR ETF (XLF) could possibly be amongst the largest near-term laggards. It tracks the S&P 500 financial index.
His firm sold the ETF’s positions in regional banks this week and acquired larger cap banks, in response to Davi. He sees greater institutions as a more stable, multiyear investment.
The XLF ended the week greater than 3% lower. It’s down almost 8% for the reason that SVB collapse March 10.