- VFH is an ETF that focuses on the Financials sector.
- Financials stocks have outperformed, after underperforming following the emergence of COVID-19.
- More recently, it could be argued that Financials are running out of steam, but I think there is still further room for outperformance.
- The macroeconomic backdrop remains positive as economic growth has unlikely peaked or "normalized" in the West.
- As we are still two or three quarters behind China's business cycle, it makes sense that any sector-based equity rotation is equally as far off.
For further details see:
VFH: Financials Still Look Well Positioned