After the Federal Government threw a lifeline to Citigroup (C) at the beginning of last week, the large cap financials have recovered nicely.
XLF top holdings includes Citi as well as other major financial players such as JP Morgan (JPM), Wells Fargo (WFC) and Bank of America (BAC).
The U.S. government agreed to rescue the banking giant in an eleventh-hour, $326 billion plan to avoid collapse.
The government will invest $20 billion in Citi and guarantee up to $306 billion of troubled Citi assets. The deal also gives the government control of executive bonuses, and limits dividend payments.