While I feel the pop at the end of today's trading will retrace tomorrow, the move this week has been very encouraging. While the weekly increase has been a bit above 10%, the overall financial group has moved more than that - so the price under the NAV should still be around 20%.
As people want to get in on the financial run, this is an excellent choice because you get a 20% cushion and spread out the risk.
I have done the same with PGX, an ETF dealing with preferred only.
-Don't know where to find the Discount to NAV on the 'net. I find that the best place to look for the discount is Baron's each week.- Comes out each Saturday and dated each Monday. If you don't subscribe, go to the local library. They usually carry Barons. For instance, I found FF when it was traded a couple months ago at a 34 % discount to NAV-Price of FF- 3.35. It's advanced from 3.35 to 5.95 in a couple of months. -Also bought EQS when it sold a a discount of 70%. It hasn't been as successful for me. -Purchase price 2.55- today's price-3.33. -But EQS is a company that invests in small development companies-more risks.
NAV underperformed the US financials this week by half. Their foreign holdings and cash really hurt them but their discount closed up nicely allowing them to outperform (XLF's +10.3% - FF +16.46%).
Are we headed back from the current 12.79% discount to the long term average discount of a 6.87%? Looks good - plus foreign holdings should help NAV next week if we get follow through from our jobs number.