Enterprising Investor Forum

As we finish looking through recent SEC filings from some of the all time investment Gurus, we thought we would report on one of the interesting things that caught our attention.

There has been quite a lot of movement into the Select Sector SPDRFinancial (XLF), amongst others, Arnold Van Den Berg and David Dreman have opened positions. This is a quite interesting ETF due to the fact that it holds all of the financial companies in the S&P 500 Index, has a very low expense ratio compared to competitors and is well diversified.

As you can imagine, this is a good way to play the inherent value which can be found in the financial industry without having to take a risky bet on a specific company. The industry is currently suffering but not all the companies are exposed in the same way and there is value left in there. Furthermore, this ETF is a way to play this investment thesis without only focusing on the banks, it also invests in diversified financials, insurance and real estate.

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