Question: Paul has your preferred rating of banks changed since the 18th August and is it a good time to buy?
Answer (By Paul Rickard): My preferred ranking hasn’t changed:
- NAB
- CBA
- Westpac
- ANZ
Over the last couple of weeks, Westpac has been the best performing bank. The market is more favourably disposed to Westpac, and their strategy presentation went down well on Monday. I will be writing more about this next Monday.
Good buying? Yes – but not as good as Monday/Tuesday just ahead of the closing of CBA’s rights issue and ANZ’s share subscription plan.
Buy in market dips.
Question 2: What is your view of the Betashares Dividend Harvester ETF now that it has been tested in a falling market?
Answer 2 (By Paul Rickard): Betashares Dividend Harvester (ASX Code HVST) has certainly done better over the last three months. In August, its return was -3.10%, compared to the S&P/ASX 200 Accumulation Index of -7.79%.
That said, it has still underperformed the market since inception, and I struggle with its objective (to pay an income that is at least double the market’s).
For me, still a “no thanks”.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
