5 Best Financial and Fintech ETFs To Buy

3. Financial Select Sector SPDR Fund (NYSE:XLF)

5-Year Share Price Performance as of March 22: 61.10%

Financial Select Sector SPDR Fund (NYSE:XLF) ranks 3rd on our list of the best financial ETFs. Financial Select Sector SPDR Fund (NYSE:XLF) aims to match the performance of the Financial Select Sector Index. This index provides exposure to companies across multiple financial sectors including financial services, insurance, banks, capital markets, mortgage real estate investment trusts, and consumer finance. The fund was established on December 16, 1998. The fund features a gross expense ratio of 0.09%, along with $38 billion in assets under management as of March 21, 2024. Its portfolio consists of 71 stocks. 

Visa Inc. (NYSE:V) is one of the top holdings of the Financial Select Sector SPDR Fund (NYSE:XLF). On March 12, Visa Inc. (NYSE:V) and Taulia, a fintech company specializing in working capital management solutions, announced that they have collaborated to enhance business-to-business (B2B) payments. By integrating Visa’s digital payments technology into Taulia Virtual Cards, which integrates with SAP enterprise resource planning systems, the partnership aims to create a smoother payments experience for both buyers and suppliers. 

According to Insider Monkey’s fourth quarter database, 162 hedge funds were long Visa Inc. (NYSE:V), compared to 167 funds in the last quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 16.8 million shares worth $4.37 billion. 

In its October 2023 investor letter, Lakehouse Capital stated the following regarding Visa Inc. (NYSE:V):

“Visa Inc. (NYSE:V) reported a strong result with net revenue increasing 11% year-on-year to $8.6 billion and non-GAAP earnings per share increasing by 21% to $2.33. As has been the case for many years now, the scalable nature of the business allows for revenue growth to outpace its costs, which places the company in a good position to navigate through this inflationary period. The network continues to grow, with credentials and merchant locations up 7% and 17%, respectively. Cross-border travel-related spend also maintained its robust growth, increasing 26% year-on-year while Visa Direct reported 7.5 billion transactions, up 19% year-on-year, progressing on penetrating categories such as cross-border remittances. Altogether, we’re pleased with how the business is tracking and remain positive on Visa’s outlook.”

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