Betashares Global Banks is under Algo Engine buy conditions and is a current holding in our ETF model portfolio.
We recently added to the position at $5.85 and the ETF is now trading at $6.25.
Global sector rotation is occurring and money is switching from momentum to value. This could be a repositioning ahead of this week’s ECB meeting and next month’s anticipated Fed Reserve rate cut.
The yield on the global bank ETF is 1.3%. We don’t consider this a core holding and will, therefore, look to take profit on the trade.
Author: Leon Hinde
Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.
PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:
· Deposit Products
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks