Financial Sector ETF Slumps Four Days, Tests 320-Day MA, Concentrates 25% in Two Stocks
Financial Select Sector SPDR Fund was among the worst-performing ETFs last week, falling for four consecutive days and testing its 320-day moving average while put options outnumbered calls by nearly 2-to-1. The fund allocates 25% of its portfolio to its top two holdings, increasing sector concentration risk.
1. Performance Decline
Financial Select Sector SPDR Fund fell for four consecutive trading days last week, testing its 320-day moving average on Friday. The ETF underperformed peers as investors leaned into bearish bets, driving put options to almost double call volume over the past two weeks.
2. Portfolio Concentration
The fund allocates roughly 25% of its assets to its top two holdings, heightening sector concentration risks. Such heavy weighting can amplify volatility if those stocks face negative news or broader market headwinds.