A.I.M. Users Bulletin Board

[AIMster]

Re: Bank ETF's/Funds

I've got a position going in BTO, the John Hancock Bank and Thrift Opportunity Fund, currently with a modest 2.9% dividend but trading at a -20.43% discount to NAV. Expense ratio is 1.34%, about the high end of what I'll use, but better than some.

Their chart has mirrored the market:



So buying now decreases average cost. Looking at a 5 year chart shows a rather steady decline after being somewhat range bound.



So unless we go for broke, if you don't have to average down an existing position as I'm doing, starting one now would seemingly offer room to the upside with somewhat less to the down. Pure index funds might offer a play with less fees, being more cost effective, but I suppose the larger question being framed is "is the financial sector oversold?" To which I don't have a truly good answer. If you've got some sidelines capital waiting to get back in, a modest entry might be made now. Just don't bet the farm.

Best,

AIMster