VFH: Financials Set To Outperform

Jordan Sauer
4.3K Followers

Summary

  • As the Federal Reserve scales back quantitative easing, the commodity of money benefits.
  • On the back of normalized interest rates, financials are set to be the best performing sector of the decade.
  • We believe the Vanguard Financials ETF (VFH) will beat the S&P 500 and return 11% per annum to investors.
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Investment Thesis

The Vanguard Financials ETF (NYSEARCA:VFH), a sector that has trailed the S&P 500 over the past five years. So why does Warren Buffett have approximately 1/4 of his stock portfolio invested in the sector? And why is

This article was written by

4.3K Followers
Analyst at TipRanks

Analyst’s Disclosure:I/we have a beneficial long position in the shares of JPM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article includes base case scenario estimates, using known facts and economic projections. The future is uncertain, and investors must draw their own conclusions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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