US Financial Sector (NYSEArca:IYF), Vanguard Financials ( VFH ), and SPDR Financial (NYSEArca:XLF) are the most popular broad-based, low-cost funds for this sector. Once balance sheets have been restored the Federal Reserve will likely raise its prime lending rate, and its hand may be tipped sooner if inflation kicks up. But the more fundamental economic point is that foreclosures, in aggregate, drag down housing prices and give underwater homeowners more reason to default strategically.