There is speculation that the collapse of Silicon Valley Bank could expose problems lurking in sector-pegged ETFs.
John Davi, CIO of Astoria Portfolio Advisors, has financials at the top of his watch list.
“You have to be aware of your risk,'” Davi, who directs that AXS Astoria Inflation Sensitive ETF, told CNBC’s ETF Edge this week. The fund is an ETF.com 2023 finalist for ETF of the Year.
David claims that Financial Sector SPDR ETF (XLF) could be among the biggest short-term laggards. It tracks the S&P 500 financial index.
His firm sold the ETF’s positions in regional banks this week and bought larger-cap banks, Davi said. He sees larger institutions as a more stable, multi-year investment.
The XLF ended the week more than 3% lower. It is down nearly 8% since the SVB collapse on March 10th.