Agree, I have too much of banks but in next 2.5 to 4.5 years, I will have them free carry as the dividend over last 5 year almost paid back most of capital invested. So while it looks too much but it will be providing me ongoing income at no cost in next few year no matter where the world is !!! unlike resource stocks the bank provided solid stability when it comes to timely income and almost same dividend year on year excluding covid type events.
I use dividend i earn in finance sector to diversify into other sector. In US market, I recently sold my position on TQQQ & JPEQ but i still hold small position in MAGX, GPIQ. At the moment I am interested in selling put option on TQQQ until this Iran issue are sorted out and this option premium earning roughly 13% income much better then anything else !
WAM is a mistake and it is roughly 11.8% in finance sector below so without WAM total exposure to finance sector is roughly 58%. I can't exit WAM at the moment but that will be the first one to exit when time is right (if it ever comes !).
This is how overall sector wise diversification looks like on my portfolio :
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