I'm looking to purchase a bank etf to increase my exposure to financials. With interest rates finally moving higher and banks well capitalized, I see this as an opportunity. On my longer term screens IAI (brokers and dealers) comes up as a strong candidate. KRE (regional banks) has done quite well since November. Curious if anyone has evaluated funds in this space? Also open to mutual funds with high concentrations in financials. thanks.
I've tried investing in the financial sector from time to time and my experience has been that it most often ends up as a dead or losing proposition. I've taken to pretty much ignoring the sector and letting my broader based mutual funds or ETF's handle it for me. I should've bought BAC back when it was selling for $2 something though. I just couldn't. Do try to find out what Ms. Wood's and her team has to say about financial innovation though.
I did maintain a position in HQL, and then in BME, but I now believe that active management in those two healthcare funds added no alpha. I would not discourage an investor from exploring equity CEFs, especially if the goal is equity-income-like returns, especially as many CEFs have had to adopt minimum distribution plans, often in the range of 8% yearly. There is income to be had in those circumstances, but the learning curve could be steep for some. One drawback of equity CEFs is volatility, particularly on the downside. I have gotten more satisfaction and better returns from ETFs like MOAT and CAPE. Recently I added DSTL, DSTX, XBUY, CSB, NUEM, and of course ARKK. Best wishes to you from behind my KN 95.
"Never hold so much that you can't double down when needed."
That works in the casino , so (probably) a good idea , NOT !!
Stay Safe , Derf