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When I talk about the trade of the decade in small banks, I get questions from readers about how to play the sector and which stocks to buy. I try to be generous with individual stock names on Real Money but many are just too small to write about here. However, if the stock is of reasonable size and trading volume, I do try to name names.
The other question I frequently hear is about other ways to invest in the sector. There is an ETF sponsored by First Trust NASDAQ ABA Community Bank (QABA) and several small banks focused mutual funds. If you have access in your 401k or other retirement plan to the FBR Small Cap Financial Investor (FBRSX) or the John Hancock Regional Bank Fund FRBAX they are worth an allocation. Both are proven funds with experienced managers who I would consider. Hancock also has a closed-end fund, The John Hancock Bank and Thrift Opportunity Fund (BTO) that trades right around its average 11% discount to net asset value that mire passive investors might consider for exposure to the sector....528 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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