The Financial Select Sector SPDR Fund (XLF) isn’t having the best of days.

All thanks to the collapse of the Silicon Valley Bank.

But you may want to put it on your buy screen anyway, as a potential contrarian bet. Once the crisis is priced in, the XLF ETF should come back just as strong as it did after the 2008 financial crisis.  Plus, as Warren Buffett will tell you – buy when others are fearful.

Does that mean you should run out and buy the XLF ETF immediately? No.  It just means you should keep an eye out for when it starts to bottom out.  With an expense ratio of 0.10%, the XLF ETF offers diversification with some of the top financial institutions, including Berkshire Hathaway, JPMorgan, Bank of America, Wells Fargo, Goldman Sachs, and BlackRock.

Worst case, if the XLF fails at $31 support, it could test double bottom around $30.15.  That’s where we may look for the XLF to bounce.