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Opinions Stan Wong
Ishares S&P Global Financials Sector Index FundIXGPAST TOP PICKJun 23, 2022
(A Top Pick Jun 24/21, Down 13%) Down 26% since February due to recession fears. It holds large-cap financials like Berkshire Hathaway, Royal Bank and Morgan Stanley; half of this is American. 52% are banks and 29% insurance. Trades at 1.13x price-to-book. Financials are great long-term. Pays a 2.5% dividend that will increase. Still buys it.
Stan WongOwned
$65.17
Stock price when the opinion was issued
$123.76
As of Jun 11, 2026. Market Open.
E.T.F.'s
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PAST TOP PICK
(A Top Pick Jan 12/23, Up 11%)
Good name to hold with the broadening market participation. Outperforming the MSCI World Index since fall 2020. Pretty cheap with an average 1.4x price to book. MER is 42 bps. Looks sound technically, with price above 200-day MA, higher highs and higher lows. Yield is 2.3%.
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PAST TOP PICK
(A Top Pick Jan 12/23, Up 8%)
With broadening of the market away from tech, seeing financials start to perform. Outperforming MSCI World Index since Fall 2020. At 1.5x, still fairly cheap for global financials (US is closer to 2.1x price to book). Yield is 2.4%.
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E.T.F.'s
TOP PICK
Take an overweight in financials going forward. Basket of global financials. Economic picture is improving, waning inflation, dovish central banks, China reopening. All catalysts for global financial companies. Performing well this year. Europe's already up 8% this year, and there are valuation discounts compared to US. An outperformer. 1.25x price to book, quite cheap historically. 49% US, remainder international including Canada. Yield is about 3%.
Stan WongOwned
E.T.F.'s
BUY
Likes the financial space in general, in the US and internationally. Half this ETF is in US, half is international including Canada. Financials tend to be early cycle winners. Most investors won't think we're in the early cycle, but remember that the stock market tends to bottom well before the economic data bottoms. You want to prepare for that, before the pickup in the economy. Financials have broken above 200-day MA, a positive signal. Yield is 2-3%.
Stan WongOwned
E.T.F.'s
PAST TOP PICK
(A Top Pick Oct 21/21, Down 17%) On one hand, higher interest rates. But on the other, the economy is hurting credit and loan loss provisions. Price to book is cheap. Blue chip names. Still outperforming broader indices. Should pick up in early cycle stage and do very well. Yield about 4%.
Stan WongOwned
E.T.F.'s
PAST TOP PICK
(A Top Pick Aug 05/21, Down 11%) Financials are being hurt by recession worries and potential for rising credit provisions. He's holding and collecting the 4.6% dividend yield. If the slowdown is short or shallow or doesn't happen, financials will do well, as they tend to be early cycle winners.
Stan WongOwned
E.T.F.'s
TOP PICK
Likes banks in general. Interest rates moving higher, economy is recovering, loan losses declining. These are all tailwinds. 50% US financials. Price to book is 1.3x, cheap historically. Yield is 2.5%.
Stan WongOwned
E.T.F.'s
DON'T BUY
The challenge for the banks is the inverted yield curve, low rates and this low rate environment will continue for a while. The curve will not go much steeper. Central banks will continue to buy bonds and suppress yields. There has been steepening and global financials have done well. There will be not much growth. Europe is a challenge. Would stick to Canada for banks.
E.T.F.'s
TOP PICK
Global economy is on the mend, many tailwinds. 1.2x price to book, a cheap valuation historically. Half is in the US, with half elsewhere in the world. Financials everywhere will be able to increase share buybacks and dividends.
Stan WongOwned
E.T.F.'s
TOP PICK
Basket of global financial companies including insurers, asset managers, investment banks. Loan losses declining and rising interest rates provide tailwinds to benefit the banks. Price to book at 1.3x. Split 50/50 between US/international. Yield is 1.14%.
Stan WongOwned
E.T.F.'s
