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| Money Manager Advises Caution Amidst Silicon Valley Bank Fallout on ETFs |
The recent collapse of Silicon Valley Bank has led to speculation that there may be underlying problems with ETFs tied to specific sectors. According to Astoria Portfolio Advisors CIO John Davi, financials are at the top of his watch list. He warns investors to be mindful of their risk in these tumultuous times, especially given the potential fallout from the SVB collapse.
Speaking on CNBC's "ETF Edge" program, Davi advised investors to consider selling positions in regional banks and buying larger-cap banks, which he sees as a more stable, multi-year investment. He specifically cites the Financial Select Sector SPDR ETF (XLF) as a possible laggard in the near future. The XLF tracks the S&P 500 financial index and has already seen a drop of nearly 8% since the SVB collapse on March 10th.
Investors would do well to heed Davi's advice and be cautious in their investments, particularly when it comes to ETFs tied to specific sectors. The recent collapse of SVB is a warning sign that underlying problems may exist in these types of investments. With financials at the top of Davi's watch list, it is clear that there are potential risks that should not be ignored. By being mindful of these risks, investors can better protect themselves and their portfolios.
Silicon Valley Bank Collapse Leads to Potential Problems for ETFs Tied to Specific Sectors
The collapse of Silicon Valley Bank has led to concerns about ETFs tied to specific sectors, particularly financials. Astoria Portfolio Advisors CIO John Davi warns that investors need to be mindful of their risk in these volatile times. Speaking on CNBC's "ETF Edge" program, Davi recommends selling positions in regional banks and buying larger-cap banks for a more stable, long-term investment.
According to Davi, the Financial Select Sector SPDR ETF (XLF) could be one of the biggest near-term laggards. The XLF tracks the S&P 500 financial index and has already seen a drop of nearly 8% since the SVB collapse on March 10th. By being cautious and heeding Davi's advice, investors can better protect themselves and their portfolios.
Investors Should Exercise Caution Amidst Potential Fallout from Silicon Valley Bank Collapse
As the fallout from the collapse of Silicon Valley Bank continues, investors are becoming increasingly concerned about ETFs tied to specific sectors. Astoria Portfolio Advisors CIO John Davi warns that financials are at the top of his watch list and that investors need to be mindful of their risk in these turbulent times.
Speaking on CNBC's "ETF Edge" program, Davi recommends selling positions in regional banks and buying larger-cap banks for a more stable, long-term investment. He specifically cites the Financial Select Sector SPDR ETF (XLF) as a possible laggard in the near future. The XLF has already seen a drop of nearly 8% since the SVB collapse on March 10th.
Investors need to exercise caution and be aware of the potential risks associated with ETFs tied to specific sectors. The recent collapse of SVB serves as a warning sign that underlying problems may exist in these types of investments. By being mindful of these risks, investors can better protect themselves and their portfolios.
