Summary
- Big bank earnings season has come and gone.
- The big banks all posted large increases in net interest income.
- Their earnings declined due to rising PCLs, but PCL build is mostly just a precaution, not a true "loss."
- The Vanguard Financials ETF gives you exposure to banks, along with stocks like Visa and Berkshire Hathaway, which are outperforming the market this year.
- The biggest risk to the fund is weakness in investment banking. Nevertheless, it is a solid fund whose holdings are mostly very cheap.
For further details see:
VFH: Banking Is The New Oil