Are You Terrified of Bank Stocks?

By David Hanson – Apr 29, 2013 at 8:47PM

NYSEMKT: XLF

Select Sector SPDR Trust - The Financial Select Sector SPDR Fund

Market Cap

Today's Change

(-0.02%) -$0.01

Current Price

$41.12

Price as of April 24, 2024, 4:00 p.m. ET

Do you think putting your money behind one of the big banks is too risky? Here's your solution.

Many investors have sworn off financial stocks since the credit crisis. Even after the recovery, headwinds like Bank of America's (BAC -0.13%) legal situation and the London Whale trading fiasco at JPMorgan Chase (JPM 0.49%) have kept investors from diving back into individual bank stocks.

Despite the perceived riskiness of the sector, some investors may desire to have some exposure to financial stocks over the long-term. In this video, Motley Fool banking analyst David Hanson tells investors one way that they can get exposure to the sector without having to worry about a bank-specific event crushing their investment.

David Hanson has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and Wells Fargo. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, JPMorgan Chase, and Wells Fargo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.