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In the past six months, the Financial Select Sector SPDR ETF (NYSEARCA:XLF) declined 19%, about the same as the S&P 500’s dip, as the highest inflation in four decades weighed on consumers and investors alike.
To put it in perspective, financial stocks didn’t fare as poorly as consumer discretionary names — Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) plunged 32% during in the first half of the year — or as well as energy stocks, the only sector in the green — the Energy Select Sector SPDR ETF (NYSEARCA:XLE) climbed 32%.
Looking at the financial stocks that rose the most in the first half of the year, insurance names figured prominently among the top 20 movers. Unum Group (NYSE:UNM) topped the list, rising 38%. Other insurance names in the W.R. Berkley (WRB), White Mountain Insurance (WTM), Progressive (PGR), Assurant (AIZ), and Allstate (ALL).
Takeovers: Two of the financial stock in the biggest climbers are companies being acquired: First Horizon (FHN), which made the fourth-biggest gain, is being bought by TD Bank Group (TD) for $13.4B. And Alleghany (Y), in sixth-place with a 24% jump, is being acquired by Warren Buffett’s Berkshire Hathaway (BRK.B) (BRK.A) for $11.6B.
Fintech, mortgage slump: Fintech and mortgage names dominated financial stocks that fell the most in the first six months of 2022: Upstart Holdings (NASDAQ:UPST) fell the most in the first half of the year, declining a stunning 72%, followed by Singapore-based fintech and food delivery app Grab (GRAB) -64%, SoFi Technologies (SOFI) -64%, PayPal (PYPL) -63%, and Brazilian neobank Nu Holdings (NU) – 60%.
As the Federal Reserve raised its policy interest rate, the stocks of lenders fell, including UPST and mortgage names Rocket Companies (RKT) and UWM Holdings (UWMC).
Some wealth and asset management companies also saw major declines as equity markets swooned: Janus Henderson (JHG), Focus Financial (FOCS), T. Rowe Price (TROW), and Carlyle Group (CG).
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|
H1’s biggest gainers |
H1’s biggest decliners |
||||
|---|---|---|---|---|---|
|
UNM |
Unum Group |
+38% |
UPST |
Upstart Holdings |
-79% |
|
FUTU |
Futu Holdings |
+37% |
GRAB |
Grab Holdings |
-64% |
|
BANF |
BancFirst |
+35% |
SOFI |
SoFi Technologies |
-64% |
|
FHN |
First Horizon |
+33% |
PYPL |
PayPal Holdings |
-63% |
|
WRB |
W.R. Berkley |
+25% |
NU |
Nu Holdings |
-60% |
|
Y |
Alleghany |
+24% |
TRUP |
Trupanion |
-54% |
|
WTM |
White Mountain |
+23% |
CIXX |
CI Financial |
-49% |
|
BCH |
Banco de Chile |
+16% |
JHG |
Janus Henderson |
-45% |
|
CVBF |
CVB Financial |
+16% |
RKT |
Rocket Companies |
-45% |
|
LU |
Lufax Holding |
+16% |
SBNY |
Signature Bank |
-44.% |
|
ITUB |
Itau Unibanco |
+15% |
FOCS |
Focus Financial Partners |
-44% |
|
LPLA |
LPL Financial |
+15% |
TROW |
T. Rowe Price |
-43% |
|
PGR |
Progressive |
+12% |
SIVB |
SVB Financial |
-42% |
|
AIZ |
Assurant |
+12% |
CG |
Carlyle Group |
-42% |
|
AGO |
Assured Guaranty |
+11% |
PACW |
PacWest Bancorp |
-41% |
|
THG |
Hanover Group |
+10% |
UWMC |
UWM Holdings |
-41% |
|
HSBC |
HSBC |
+8.1% |
CS |
Credit Suisse |
-41% |
|
ALL |
Allstate |
+7.4% |
SYF |
Synchrony Financial |
-40% |
|
TRV |
Travelers |
+7.4% |
URE |
ProShares Ultra Real Estate ETF |
-38% |
|
AFG |
American Financial Group |
+7.3% |
MC |
Moelis & Company |
-38% |