‘Be aware of your threat’: Cash supervisor tackles Silicon Valley Financial institution fallout on ETFs

There’s hypothesis the Silicon Valley Financial institution collapse might expose issues lurking in ETFs tied to particular sectors.

Astoria Portfolio Advisors CIO John Davi has financials topping his watch checklist.

“It is advisable be aware of your threat,'” Davi, who runs the AXS Astoria Inflation Sensitive ETF, instructed CNBC’s “ETF Edge” this week. The fund is an ETF.com 2023 “ETF of the 12 months” finalist.

Davi contends the Financial Select Sector SPDR ETF (XLF) could possibly be among the many greatest near-term laggards. It tracks the S&P 500 monetary index.

His agency bought the ETF’s positions in regional banks this week and acquired bigger cap banks, in response to Davi. He sees larger establishments as a extra steady, multiyear funding.

The XLF ended the week greater than 3% decrease. It is down nearly 8% because the SVB collapse March 10.