3 Reasons Why XLF Is My Top Pick To Beat The Market In 2026
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Grassroots Trading2.5K FollowersFollow5ShareSavePlay(19min)CommentsSummaryDispersion matters more in 2026 than owning the broad market.Sector momentum vs. SPY, confirmed by macro data, drives selection.Several sectors show early leadership; others look exhausted.Financials (XLF) stand out with strong earnings and cheaper valuations.I believe XLF offers the clearest path to outperform SPY over the next year. ultramarine5/iStock via Getty Images Thesis 2026 is coming in fast and there's strong reason to believe dispersion, at least represented by four specific sector ETFs, will outperform broad beta, meaning investors are likely to be rewarded not for owning the market, but for owning the right partsThis article was written byGrassroots Trading2.5K FollowersFollowI focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY, XLF, AAPL, NVDA, META, XLE, XLC, XLV, XLK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.