As has been widely documented, real estate stocks will become their own sector, separating from the financial services group, at the end of August.
Initially, that announcement made in 2014, was thought to have a looming impact on the Financial Select Sector SPDR Fund (NYSE: XLF). XLF, the largest financial services exchange-traded fund, has a significant weight to real estate stocks. In fact, that group represents XLF's second-largest sector allocation.
Pure Sector Exposure
State Street Global Advisors (SSgA), XLF's issuer, created the Financial Select Sector SPDR Fund (NYSE: XLFS) and the Real Estate Select Sector SPDR Fund (The) (NYSE: XLRE) as a means of giving investors pure sector exposure when real estate becomes the eleventh GICS sector. That also means XLF will not be parting with its real estate holdings.
/www.benzinga.com/trading-ideas/long-ideas/16/06/8091093/xlfs-solution-to-real-estates-looming-sector-status alt=XLF's Solution To Real Estate's Looming Sector Status>Full story available on Benzinga.com
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