The Largest Financials ETF Takes in the Most Money Since the U.S. Election

The largest exchange-traded fund tracking the financials sector just capped its best month for inflows since Donald Trump was elected U.S. president.

The Financial Select Sector SPDR Fund, known by its ticker XLF, took in $1.5 billion in November, the most since November of last year when buyers poured more than $6 billion into the fund, according to Bloomberg data. XLF surged 38 percent from the 2016 Presidential election to the end of last month as investors lined up bets banks will benefit from tax reform and deregulation.

The SPDR S&P Regional Banking ETF, ticker KRE, also brought in some record cash, taking in $290 million on Nov. 29, the largest daily inflow since 2008.

"Sentiment for financials has also improved amid expectations that loan growth will slowly improve in 2018, the Federal Reserve will maintain a steady pace of interest rate increases as Jerome Powell takes the helm, and deregulation benefits will become more substantially realized," according to Todd Rosenbluth, director of ETF & mutual fund research at CFRA.

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