The Rokslide Stock Traders Thread

[Beendare]

No problem.
FWIW, Return doesn't always tell the story. The stock or fund or ETF that had a good return last year....might not always be the best choice this year.

In regards to these ETF's I look at long term performance...or how they performed in a certain time period.

When I talk about concentration, here are a couple screen shots illustrating that point. You can easily search this info on your brokerage site. Schwab> Research> ETF's> Categories> Tech

VGT is concentrated, the top 10 holding are 58% of the entire fund [which has worked out well]

Another ETF QTEC- is less concentrated with 26% in the top 10 holdings. Notice that no one company is more than 4% of the total fund.


Now QTEC has slightly underperformed VGT but Personally I would sacrifice a couple percentage points for the added diversification. I think the best strategy is to split up your Tech allocation 50/50 between the two.

I would use the same strategy with S&P ETFs balancing Diversification with performance.

Again, this is your guys stuff with long time horizons...older guys like myself should still have a % in Tech for the performance factor...but more of a traditional balance of fixed and equities for the stability.

This investing is not rocket science, it's easy using a couple basic rules. many of the investment planners are salesmen, plugging your money into their companies investment model which are usually very conservative and take into account they don't want to get sued for any advice outside the old line advice.

Some of these programs might work well for some....but compare these ETF returns than decide if its for you.

 

[CorbLand]

VOO 10 year return is not even Close to the Tech sector ETF's.

Look S&P index stuff is good and I think it should be a part of an investment portfolio. The advantage you have in the S&P index stuff is the powers that be are constantly adjusting it- dumping the losers and adding winners...which is what you want. The S&P is a big part tech already.

Young guy advice;
Investing is all about return AND managing risk. buying individual stocks- like the penny stocks discussed here is SUPER high risk thats why for every one guy making money 25 have lost. Thats a one step forward, 2 steps back strategy- AND you have to pay tax when you sell- beentheredonethat.

You don't have to buy bonds to manage risk. You can manage risk by 1) Dollar cost averaging and 2) having a long time frame [like 20yrs] and 3) spread the money out in a few ETF's.
I don't like putting money in low return stuff to "Manage risk" unless you are near retirement and need the money soon.

I tell my kids and guys that work for me with a long term time horizon; Split it up into 3-5 ETFs but put a chunk in Tech ETFs. VGT, XLK, FTEC are all 5 star rated by Morningstar. Keep in mind VGT is a bit concentrated with 30% or more in the top 10 companies....I would recommend splitting it up, some in that...and some in a tech ETF that is less concentrated [look up their holdings, pick one concentrated and one with the top holdings no more than 5%]
Then do the same with S&P etf's- concentrated and non concentrated. Plug money in there quarterly and forget it.

Run the numbers; at 19% return you double your money every 4 years. $10,000 in 20 years is over $160,000. ...then in 30 years-BAM. When broad market Tech ETF's are doing that....why mess with individual stocks? Plus ETF's are good tax wise building tax deferred.

The Tech ETF's weren't available when I was younger.....

Of course there is never a guarantee....but you invest in what will work in the future. My bet is tech will be more and more of our lives as time goes by....a pretty good bet.

Thanks.
About 80% of my retirement is in SP500 trackers and blue chip stocks. Of that, the vast majority is in SP500 trackers and I have been looking for a way to spread that out a little. This gives me another one to look at.

 

[MountainTracker]

Yes. I'm 49 and retired. So take my advice and at the very least load up on mstr.

Are you holding just MSTR, calls or both?


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