There is speculation that the collapse of Silicon Valley Bank could reveal the problems lurking in ETFs tied to specific sectors.
John Davi, CIO of Astoria Portfolio Advisors, puts finance at the top of his watch list.
“You have to be aware 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 Year” finalist.
David argues that SPDR Selected Financial Sector ETFs (XLF) could be among the biggest short-term laggards. It tracks the S&P 500 financial index.
His firm sold ETF positions in regional banks this week and bought larger capitalization banks, according to Davi. He views larger institutions as a more stable, multi-year investment.
XLF ended the week down more than 3%. That’s down nearly 8% since the SVB collapsed on March 10.