There are speculations that the collapse of Silicon Valley Bank could expose problems lurking in ETFs linked to certain sectors.
Astoria Portfolio Advisor, CIO John Davi has financials high on his watch list.
“You have to be aware of your risk,” Davi said AXS Astoria Inflation Sensitive ETF, told CNBC’s “ETF Edge” this week. The fund is an ETF.com 2023 “ETF of the Year” finalist.
Davi objected Financial Select Sector SPDR ETF (XLF) can be among the biggest near-term laggards. It tracks the S&P 500 financial index.
His company sold its ETF position in a regional bank this week and bought a larger-cap bank, according to Davi. They see larger institutions as more stable multiyear investments.
XLF ended the week more than 3% lower. It’s down almost 8% since SVB collapsed on March 10.