Financials Out of Fashion Financial Select Sector SPDR Fund XLF lost about $1.52 billion in assets as yield curve flattened/ inverted many times in the quarter. Financial Select Sector SPDR ETF (XLF): ETF Research Reports The combination of factors such as 40-year high U.S. inflation, renewed Coronavirus cases in various parts of the world, the Russia-Ukraine war and the Fed’s aggressive tightening policy are weighing heavily on investor sentiment.