XLF - BTO: 4 Reasons Why I Would Avoid This CEF
2024-02-07 21:04:50 ET
Summary
- The John Hancock Financial Opportunities Fund aims for capital appreciation and income through investments in financial services stocks.
- The fund is characterized by a very high management fee and is trading at a premium to NAV.
- BTO has little exposure to non-bank financials, which make up a large part of financial sector ETFs such as XLF.
- I rate BTO a Sell.
The John Hancock Financial Opportunities Fund ( BTO ) is a closed-end fund ("CEF") which aims to deliver capital appreciation and current income by investing primarily in equity securities of U.S. and foreign financial services stocks.
BTO launched in August 1994 and currently has net assets of ~$563 million. The fund uses leverage and currently has a total effective leverage ratio of 17.2%....
BTO: 4 Reasons Why I Would Avoid This CEF