KCE
State Street SPDR S&P Capital Markets ETF
stock NYSE ETF

I've been reading the same articles as you, predictions that overpriced tech could bring about a correction and that financials could be a safe haven. Analysts blow a lot of hot air but within it all, they frequently point the way to what the guys on Wall Street are thinking will come next. I took a chance, but one that I could afford because my portfolio is spread out over several sectors, the top four being 21% industrials, 15.5% financials and 14.5% tech, 12.5% healthcare.
If you decide to make a move toward financials, I think you should look beyond the very popular XLF because it hasn't been a great performer for me so far. I'm not willing to dump it but could have chosen better. I like to look at 5 year performance so I can see how things move with several types of markets. I use [STOCKANALYSIS.COM](http://STOCKANALYSIS.COM) for this. Someone in this thread suggested KBWB which did 50% better than XLF over 3 years. But it took a dive in early 2023 and did only half as well in 5 years. In periods of less than 1 year, KBWB is going up while XLF is going down. So things look favorable for KBWB.
[ETFRC.COM](http://ETFRC.COM) tells me that there is an overlap of 19 stocks between the two. All of them are large to mid-size banks. It also says that KBWB only holds 29 stocks while XLF has 76. So most of KBWB is in XLF. XLF has more in the way of insurance and credit cards. So KBWB is more focused. I tend to like the wider grasp of XLF, so that's a minus for KBWB in my mind. KBWB also has an annual expense ratio of 0.35 ($3.50 per $1000)and XLF is only 0.08% (00.80 per $1000).
My personal criteria is at least a 50% gain over five years and an expense ratio of 0.35 or below. A fifty percent gain isn't a lot but it tells me that the ETF can hold up over a long period but that it's not overheated yet. Something that I might be able to get into cheaply and ride it up. Then I look at the 1 and 3 year to see if the trend is up or down.
Going to [ETF.COM](http://ETF.COM) tells me that there are 17 ETFs with an expense ratio under 0.35%. One, KBWR is defunct. HSBH is hedged and I don't want that. Nine of those seventeen returned 50% or more over five years. So those are what I will choose from. GSIB has the best 5yr return at 161%. Global big banks, inexpensive at $62.55. Next best is KCE at 91%. Looks like a lot of brokers rather than banks. $160.67 won't buy a lot of shares. Of the nine, KBWB is 5th best performance, XLF was 8th best.
So I would work with those nine, look at performance over various lengths, see how many shares I can afford, what's is each ETF holding. I'm liking KBWB and GSIB. If Europe is going to increase their military spending, they'll need financing. The others above KBWB appear to specialize in insurance and brokerages and I want some banks in there. But KBWB doesn't hold many stocks and it may be better to go for more diversification but a smaller return. I would look into that further.

I've been reading the same articles as you, predictions that overpriced tech could bring about a correction and that financials could be a safe haven. Analysts blow a lot of hot air but within it all, they frequently point the way to what the guys on Wall Street are thinking will come next. I took a chance, but one that I could afford because my portfolio is spread out over several sectors, the top four being 21% industrials, 15.5% financials and 14.5% tech, 12.5% healthcare.
If you decide to make a move toward financials, I think you should look beyond the very popular XLF because it hasn't been a great performer for me so far. I'm not willing to dump it but could have chosen better. I like to look at 5 year performance so I can see how things move with several types of markets. I use [STOCKANALYSIS.COM](http://STOCKANALYSIS.COM) for this. Someone in this thread suggested KBWB which did 50% better than XLF over 3 years. But it took a dive in early 2023 and did only half as well in 5 years. In periods of less than 1 year, KBWB is going up while XLF is going down. So things look favorable for KBWB.
[ETFRC.COM](http://ETFRC.COM) tells me that there is an overlap of 19 stocks between the two. All of them are large to mid-size banks. It also says that KBWB only holds 29 stocks while XLF has 76. So most of KBWB is in XLF. XLF has more in the way of insurance and credit cards. So KBWB is more focused. I tend to like the wider grasp of XLF, so that's a minus for KBWB in my mind. KBWB also has an annual expense ratio of 0.35 ($3.50 per $1000)and XLF is only 0.08% (00.80 per $1000).
My personal criteria is at least a 50% gain over five years and an expense ratio of 0.35 or below. A fifty percent gain isn't a lot but it tells me that the ETF can hold up over a long period but that it's not overheated yet. Something that I might be able to get into cheaply and ride it up. Then I look at the 1 and 3 year to see if the trend is up or down.
Going to [ETF.COM](http://ETF.COM) tells me that there are 17 ETFs with an expense ratio under 0.35%. One, KBWR is defunct. HSBH is hedged and I don't want that. Nine of those seventeen returned 50% or more over five years. So those are what I will choose from. GSIB has the best 5yr return at 161%. Global big banks, inexpensive at $62.55. Next best is KCE at 91%. Looks like a lot of brokers rather than banks. $160.67 won't buy a lot of shares. Of the nine, KBWB is 5th best performance, XLF was 8th best.
So I would work with those nine, look at performance over various lengths, see how many shares I can afford, what's is each ETF holding. I'm liking KBWB and GSIB. If Europe is going to increase their military spending, they'll need financing. The others above KBWB appear to specialize in insurance and brokerages and I want some banks in there. But KBWB doesn't hold many stocks and it may be better to go for more diversification but a smaller return. I would look into that further.