The Financial Select Sector SPDR Fund (XLF) Top 25 Holdings

The Financial Select Sector SPDR Fund (XLF) provides investors with concentrated exposure to the U.S. financial sector. Its holdings span banks, insurers, asset managers, payment networks, and exchanges, giving it a unique role in reflecting the health of America’s financial system.

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In 2025, XLF has gained 11.7% year-to-date, with a 16.4% CAGR over the measured period. While this is more modest than broader equity indexes, it demonstrates resilience in the face of macroeconomic uncertainty, shifting interest rate expectations, and regulatory scrutiny of the banking sector. The ETF has also benefited from the sector’s strong capital returns through dividend payments and share buybacks.

The fund’s structure heavily favors large-cap leaders, with Berkshire Hathaway, JPMorgan Chase, and Visa making up nearly one-third of the portfolio. This concentration makes XLF a pure play on financials while still capturing diversity across banking, payments, and asset management.

1. Berkshire Hathaway (BRK.B)

Berkshire Hathaway is XLF’s largest holding, accounting for 11.84% of the fund. Warren Buffett’s conglomerate offers exposure to a diverse range of operations, including insurance, industrial subsidiaries, utilities, and a substantial equity portfolio. Its stability stems from its cash-generating businesses, while its investment arm benefits from long-term equity holdings in companies like Apple, Coca-Cola, and American Express.

The company’s unique structure enables it to be both an insurance powerhouse and a diversified investment vehicle. Unlike pure-play financials, Berkshire captures earnings from non-financial businesses, giving XLF holders indirect exposure to industrials, energy, and consumer brands.

For investors, Berkshire Hathaway serves as a stabilizing anchor in the XLF. Its sheer size, cash reserves, and conservative management approach offer downside protection while still delivering long-term growth.

2. JPMorgan Chase (JPM)

JPMorgan Chase, with a weighted stake of 11.24%, is the largest U.S. bank by assets and a global leader in investment banking, consumer banking, and asset management. It has consistently outperformed peers through scale, technology investment, and prudent risk management.

The bank has leveraged higher interest rates to grow net interest income, though credit quality and regulatory oversight remain ongoing considerations. Its diversified business model, spanning retail banking, investment banking, and wealth management, provides durability across cycles.

For XLF, JPMorgan Chase delivers both growth and stability. Its leadership in U.S. and global finance makes it a cornerstone of the ETF, ensuring exposure to the sector’s most important franchise.

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3. Visa Inc. (V)

Visa represents 7.42% of XLF, providing exposure to one of the world’s most dominant payment networks. Its business model is built on transaction volume rather than lending, giving it a high-margin, capital-light structure. This differentiates Visa from traditional banks, making it a growth-oriented component within the ETF.

Global trends in digital payments, e-commerce, and cashless transactions continue to fuel Visa’s expansion. Its scale, brand recognition, and international reach position it to benefit from the secular shift toward digital finance.

For investors, Visa adds a growth engine to XLF’s portfolio. Its steady revenue model and global relevance complement the more cyclical banking components of the fund.

What XLF Really Owns

XLF’s composition highlights the powerhouses of the U.S. financial sector, anchored by Berkshire Hathaway, JPMorgan Chase, and Visa. These holdings strike a balance between traditional banking exposure, insurance stability, and payment innovation, ensuring the fund captures multiple angles of financial performance.

The broader mix of banks, insurers, asset managers, and exchanges rounds out the ETF. From Goldman Sachs to BlackRock and American Express, XLF includes names that drive capital markets, consumer finance, and risk management. This diversification helps balance cyclical volatility while maintaining the upside potential.

Key Insights

• Anchored by giants: Berkshire Hathaway and JPMorgan Chase alone represent nearly a quarter of the ETF’s weight.
• Payment exposure: Visa and Mastercard bring growth from the global shift to digital transactions.
• Sector balance: Includes banks, insurers, asset managers, and exchanges, thereby diversifying risk within the financial sector.
• Solid returns: A 11.7% YTD gain shows stability despite regulatory headwinds and rate volatility.

Why You Should Invest In XLF

The Financial Select Sector SPDR Fund (XLF) has delivered an 11.7% YTD return, reflecting both the challenges and opportunities of the U.S. financial system. Its holdings span the largest institutions that underpin banking, payments, and asset management globally.

By concentrating on the financial sector, XLF provides targeted exposure that can amplify market cycles. Its long-term appeal lies in access to blue-chip financials that consistently generate dividends and remain at the center of economic activity.

For investors seeking to complement broader equity exposure with focused financial-sector holdings, XLF offers a liquid, cost-effective, and diversified vehicle. Its combination of resilience and cyclical potential makes it a key building block in sector-tilted portfolios.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!