The XLF ETF provides diversified exposure to the US financial sector, holding major banks, insurers, payment networks and capital markets firms including JPMorgan, Berkshire Hathaway, Visa, Mastercard and Bank of America. XLF became a key Trump Trade as investors anticipated financial deregulation, a relaxation of Basel III capital requirements and a more supportive M&A environment under Trump’s second term – he’s certainly delivered on this front.
This reporting season has seen the S&P 500 Financials sector have an exceptionally strong 2Q 2026 earnings season, outstripping the broader index, where ~90% of reporting companies have beaten EPS estimates. Within the S&P 500 Financial Services industry group, the beat rate has been perfect so far: 15 beats, 0 misses.
- We can see no reason to “fight the tape” here as the XLF trades at new all-time highs.
