Lastly, we have the Financial SPDR (XLF), which may surprise some people since many think that we are going to suffer at least one more financial crisis in the future.
I disagree — I guarantee we’ll have even more than one.
But still, financial services are completely wrapped around everything we do. That’s because consumption is what we do best … and you can’t consume unless you purchase, and you can’t purchase unless you have at least one financial service company involved.
And those services I’m referring to go way beyond banking, by the way. There’s so much infrastructure associated with financial services, it would make your head spin.
The good news is that all aspects of the financial world are wrapped up nicely in the XLF, with Warren Buffett’s Berkshire Hathaway (BRK.B) stealing the title of the fund’s largest holding. And again, this SPDR comes with rock-bottom expense ratio of 0.18%.
The XLF may have some volatility here and there, but over the long term it remains one of the best ETFs you can buy, and an obvious core holding for any portfolio.
As of this writing, Lawrence Meyers owned shares of XLE, XLF and XLP.