What is the stock?
BetaShares Global Banks ETF (BNKS-ASX).
How long have you held the stock?
Since October 2016.
What do you like about it?
It provides exposure (~50 banks) to the global banking sector hedged into AUD$ – global banks post GFC rebound have been uncorrelated to the Big 4 banks in Australia.
How is it better than its competitors?
Global banks in recent years have had to raise significant amounts of capital to satisfy Basel’s Tier 1 Equity Capital requirements and hence have been trading at significant discounts to Australian banks.
What is your target price?
$8.96
At what point would you sell it?
$8.96
How much has it added (subtracted) to your overall portfolio over the last 12 months?
+37%
Where do you see value?
Global macro environment points towards continued tightening of monetary policy which is beneficial to banks’ profitability.
Source: Nabtrade
