Nasdaq BANK Index vs. XLF

Discussion in 'ETFs' started by flipflopper, Jan 5, 2010.

  1. Are my quotes wrong or is the BANK down 1.12% and the XLF up .75%?

    Never seen this divergence before.
     
  2. joe4422

    joe4422

    Happens all the time.


    Different types of banks make them up:


    here's the $bank:

    http://dynamic.nasdaq.com/dynamic/bank_1.stm


    Whereas here's more than half of what makes up XLF:

    Name Weight Shares Held
    Jpmorgan Chase & Co 11.60% 18,639,068
    Bank Of America Corporation 11.12% 47,000,640
    Wells Fargo & Co New 9.73% 24,175,262
    Goldman Sachs Group Inc 5.83% 2,431,507
    Citigroup Inc 4.68% 92,230,190
    American Express Co 3.26% 5,624,182
    Us Bancorp Del 3.07% 9,045,048
    Morgan Stanley 2.88% 6,429,420
    Bank Of New York Mellon Cor 2.31% 5,695,353
    Metlife Inc 2.08% 3,872,433



    XLF is most of your major banks, whereas the $BANK is a broad spectrum including alot of smaller banks.


    There's also SEF, which is short alot of the majors:


    JPMorgan Chase & Co. 9.67%
    Bank of America Corp. 8.21%
    Wells Fargo & Co. 7.01%
    Goldman Sachs Group Inc. 4.46%
    Citigroup Inc. 4.12%
    U.S. Bancorp 2.34%
    Morgan Stanley 2.15%
    American Express Co. 2.00%
    Bank of New York Mellon Corp. 1.94%
    VISA Inc. Cl A 1.78%


    Since the Nasdaq tends to be a leader, many will use the $BANK index as an indicator for the broad markets. I like to keep both up on radar.
     
  3. great posts everyone :)