Coinbase, Goldman Sachs among top S&P 500 financial movers in Q2

The Financial Select Sector SPDR Fund ETF (NYSEARCA:XLF), which tracks the S&P 500 financials sector, rose by 5.27% in the second quarter, running behind the 10.15% surge in the broader S&P500 index (SP500).

On a year-to-date basis, however, XLF outpaced the broader markets. It advanced 8.35% compared to the S&P500’s 5.5% gain.

The financial sector posted gains despite economic instability fueled by geopolitical tensions and tariff concerns. XLF was among the top three leading sectors of 2025, alongside technology and industrials.

Industries Q2 Performance

The financials-focused ETF had net flows of -$4.36B in the second quarter.

Banks saw the biggest rise in the sector which advanced 15.18%, and financial services followed next, rising 4.23%. However, insurance was the only industry that lagged at -5.23%.

Top 5 movers in Q2

Gainers

• Coinbase Global (NASDAQ:COIN) +96.18%
• Goldman Sachs (NYSE:GS) +29.60%
• Synchrony Financial (NYSE:SYF) +29.41%
• Northern Trust (NASDAQ:NTRS) +29.35%
• Franklin Resources (NYSE:BEN) +26.81%

Losers

• Erie Indemnity Company (NASDAQ:ERIE) -15.91%
• Brown & Brown (NYSE:BRO) -12.19%
• Marsh & McLennan Companies (NYSE:MMC) -10.50%
• Aon (NYSE:AON) -10.27%
• Willis Towers Watson (NASDAQ:WTW) -8.92%

What Analysts Expect

Despite potential tailwinds such as deregulation, financials remain exposed to key risks including inflation, rising interest rates, and a possible recession, said Seeking Alpha analyst Alan Brochstein, suggesting investors reduce their exposure to the sector.

“XLF’s performance has been driven by a handful of large holdings, while the rest of the ETF is similar to the overall market return,” Brochstein added, rating the ETF as Sell.

However, another analyst Komal Sarwar rated it as a Buy on the back of robust earnings growth, solid sector fundamentals, and compelling valuations relative to the S&P 500.

“Year to date, the sector is trading in positive territory compared to a negative price return from the broader market index. Despite the multiple rate cuts and a tough year-over-year comparison, the sector continued to generate solid growth in 2025 while beating Wall Street expectations,” she said

On the other hand, Sensor Unlimited maintained a cautious stance on XLF with a Hold call in an April article due to mixed impacts from an aggressive interest rate cut outlook.

Overall, Seeking Alpha analysts have issued a Hold rating for the ETF.

What Quantitative Measures Say

XLF received a Buy rating from the SA quant system with a 4.15 score out of 5. This comes in large part due to a C grade in the category of risk. The stock, however, received high grades in other areas, with an A for momentum, an A- for dividends and an A+ for liquidity and expenses.