You're Owning The Wrong ETFs

A Must-Have ETF in Your Portfolio

yHey there!

Welcome to the WOLF Financial Newsletter.

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“You can’t go wrong if you invest in ETFs.”

Actually, you can…

Because not all ETFs are created equal.

There are 1,000s of them, and it’s important to choose ones that are high-quality AND long-term focused.

One of my favorites lately is...

$GABF, an ETF from Gabelli Funds.

The full name is “Gabelli Financial Services Opportunities ETF."

But why choose it?

It's an actively managed fund of US-listed financial services companies...

It uses the Precidian non-transparent investing style, meaning it does not provide daily disclosure of its portfolio holdings, unlike other ETFs.

This minimizes the risk that shares of the fund may trade at wider spreads, especially during periods of volatility.

So, how does it work?

The fund adviser identifies assets selling at a discount to their private market value and looks for a relevant opportunity that may add value to the company.

They take into consideration fundamental and macroeconomic factors as well.

What I like about $GABF is their fund requirements.

They don't just let any financial services company into their portfolio.

The requirements to be included in the fund are:

50% of their assets or 50% of their revenue must come from:

  • Mortgage REITs

  • Asset management

  • Insurance business

  • Banking & financing

  • Financial enterprises

  • Financial transactions

  • Securities exchanges and electronic trading

But even then, they are very selective with what companies are included.

As one of the top-performing financials ETFs in 2023, it's firmly in my sights and it continues to perform, even in times of market uncertainty.

If you’re looking to add a high-quality ETF to your portfolio, start doing due diligence on $GABF.

Learn more about them here:

That’s all for today!

Thanks for reading & it's been exciting doing work with Gabelli.

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