tech funds

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rondebbs
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tech funds

Post by rondebbs » Wed May 08, 2019 3:24 pm

I'm 59 and retired - living off savings. Investments split between IRA and Taxable brokerage (no Roth). 50% MM (VMMXX) and 50% equities - mostly vti and spy. I also use QQQ as I have liked having more exposure to tech over the years. Starting to look at other tech funds like VGT and XLK. I will be building more positions in tech on pullbacks. Of course I want the best tech fund possible. Any thoughts on QQQ vs VGT vs XLK?

barnaclebob
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Re: tech funds

Post by barnaclebob » Wed May 08, 2019 3:27 pm

How do you know that the pullbacks wont happen at a greater price than today? In other words what if today is the lowest price we see for 10 years?

None of us can tell you what the best fund will be because that asking us to tell the future.

HEDGEFUNDIE
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Re: tech funds

Post by HEDGEFUNDIE » Wed May 08, 2019 4:21 pm

"The best tech fund possible" is probably one that you have to build yourself.

Starting with a list like this:

https://www.bvp.com/bvp-nasdaq-emerging-cloud-index

Topic Author
rondebbs
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Re: tech funds

Post by rondebbs » Wed May 08, 2019 5:01 pm

I bought QQQ yesterday on pull back and again at end of day today. If Thursday and Friday are down days I will likely buy more. Even though tech is extended, I want to be over weight tech because I feel there will always be advantages there (a software company or cyber security company does not need huge investments in property, capital, machinery, materials, components, plants etc to be successful). I'm trying to figure out if I should continue to buy QQQ (tomorrow, Friday, Monday - if trade talks send it lower) or if there are better alternatives that I should look at.

Hedgefundie, thanks for your list of cloud companies - I will look at it. But I always liked investing in known, proven, low cost ETFs. Just trying to get suggestions that others may have.

RetiredCSProf
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Re: tech funds

Post by RetiredCSProf » Wed May 08, 2019 5:26 pm

I own shares of IXN, which is a global tech ETF fund, and SOXX, which is a semi-conductor ETF fund. Both funds were purchased for me when I was invested in an advisor-managed rollover IRA account. Both have done well in the past few years, but I can't predict the future. My best performing actively-managed tech MF is Red Oak Technology Select Fund (ROGSX), which I purchased over 20 years ago. None of these funds have anything to do with BH philosophy.

HEDGEFUNDIE
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Re: tech funds

Post by HEDGEFUNDIE » Wed May 08, 2019 7:15 pm

rondebbs wrote:
Wed May 08, 2019 5:01 pm

Hedgefundie, thanks for your list of cloud companies - I will look at it. But I always liked investing in known, proven, low cost ETFs. Just trying to get suggestions that others may have.
QQQ includes Pepsi and Comcast in its top 10 holdings.

XLK includes Visa and MasterCard.

My point is this, if you have conviction in tech you can build a more “pure” tech fund yourself with a brokerage like Motif. Build your portfolio initially at market weights, and then you can add funds into it at any point, just like an index fund. This also allows you to add new IPOs into the portfolio like PagerDuty or Zoom as they happen.

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tennisplyr
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Re: tech funds

Post by tennisplyr » Thu May 09, 2019 7:27 am

I've held this Fidelity fund for years and have no complaints.

https://fundresearch.fidelity.com/mutua ... /316390822
Those who move forward with a happy spirit will find that things always work out.

Valuethinker
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Re: tech funds

Post by Valuethinker » Thu May 09, 2019 8:49 am

tennisplyr wrote:
Thu May 09, 2019 7:27 am
I've held this Fidelity fund for years and have no complaints.

https://fundresearch.fidelity.com/mutua ... /316390822
No Apple, no Amazon, no Facebook. Maybe one can live without those, but no Alphabet (Google)?

That's not really a "technology" play in the way people probably mean it here, because they mean to include the internet giants.

fwellimort
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Re: tech funds

Post by fwellimort » Thu May 09, 2019 9:06 am

Go open an m1finance account then and buy the stocks yourself.
They allow fractional shares. Go pick your "stocks" for tech then.

Who knows. (shrugs)

JTColton
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Re: tech funds

Post by JTColton » Thu May 09, 2019 9:14 am

I like IGV iShares Expanded Tech Sector - Software, large exposure to cloud/virtual service companies Adobe, Visa/MC, etc.

teamDE
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Re: tech funds

Post by teamDE » Thu May 09, 2019 10:30 am

Have you seen the top ten holdings in VTSAX?

dacalo
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Re: tech funds

Post by dacalo » Thu May 09, 2019 11:21 am

I don't have any specific suggestions, but with my "fun" money, I have been bullish on cyber security and cloud computing/storage solutions and have done very well.

retire2022
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Re: tech funds

Post by retire2022 » Thu May 09, 2019 12:02 pm

edit
rondebbs wrote:
Wed May 08, 2019 3:24 pm
I'm 59 and retired - living off savings. Investments split between IRA and Taxable brokerage (no Roth). 50% MM (VMMXX) and 50% equities - mostly vti and spy. I also use QQQ as I have liked having more exposure to tech over the years. Starting to look at other tech funds like VGT and XLK. I will be building more positions in tech on pullbacks. Of course I want the best tech fund possible. Any thoughts on QQQ vs VGT vs XLK?

I've turned 10k to 70k with a tech sector fund 1997-2000

My thinking now VGT has to break the 50day moving average to make it a bargain

Most BHers would shun my thought process

https://youtu.be/ktToRNpKNgI

Video will explain thought process when to buy

You will need an app, I use Stockmaster and have cash already in my Vanguard account to do the transfer

also check out 10 year comparison of QQQ, VGT, XLK

http://quotes.morningstar.com/chart/etf ... 2%3A955%7D

for
expense ratio:
QQQ 0.20
VGT 0.10
XLK 0.13

Portfolio turnover %

QQQ 4.94% (5%)
VGT 7%
XLK 19%

number of stocks
QQQ 104
VGT 319
XLK 68

10 year performance
QQQ 442.71%
VGT 425.63%
XLK 347.40%

Morningstar ratings QQQ has five star, VGT has four stars and XLK has three stars

QQQ is not a pure tech fund

dividend yield

QQQ is 0.77%
VGT is 1.11%
XLK is 1.28%

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tennisplyr
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Re: tech funds

Post by tennisplyr » Thu May 09, 2019 5:34 pm

Valuethinker wrote:
Thu May 09, 2019 8:49 am
tennisplyr wrote:
Thu May 09, 2019 7:27 am
I've held this Fidelity fund for years and have no complaints.

https://fundresearch.fidelity.com/mutua ... /316390822
No Apple, no Amazon, no Facebook. Maybe one can live without those, but no Alphabet (Google)?

That's not really a "technology" play in the way people probably mean it here, because they mean to include the internet giants.
Returns of +22%/year over past 10 years works for me!
Those who move forward with a happy spirit will find that things always work out.

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tennisplyr
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Re: tech funds

Post by tennisplyr » Thu May 09, 2019 5:37 pm

Deleted
Last edited by tennisplyr on Sat May 11, 2019 6:35 am, edited 1 time in total.
Those who move forward with a happy spirit will find that things always work out.

retire2022
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Location: NYC

Re: tech funds

Post by retire2022 » Fri May 10, 2019 3:01 pm

Ron

I’d put in a limit order at $200$197 per share for 460468 shares within 60 days via Roth IRA.

If this does not happen no big deal, this is like an auction on ebay. I think since it has not broke 50 day moving average I got nothing to loose.

I can always cancel my order.

Wish me luck
Last edited by retire2022 on Sat May 11, 2019 11:59 am, edited 1 time in total.

Topic Author
rondebbs
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Joined: Fri Apr 18, 2014 1:11 pm

Re: tech funds

Post by rondebbs » Fri May 10, 2019 4:00 pm

Thanks for all the input. Although QQQ is not a pure tech play, I think I will stay with the ETF as it has worked quite well over the years. I had lots of tech in my 401K but liquidated it an transferred funds to my IRA. So now I will start re-positioning and will use QQQ as a big part of that.

Topic Author
rondebbs
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Re: tech funds

Post by rondebbs » Fri May 10, 2019 6:03 pm

JTColton wrote:
Thu May 09, 2019 9:14 am
I like IGV iShares Expanded Tech Sector - Software, large exposure to cloud/virtual service companies Adobe, Visa/MC, etc.
Wow I just looked at IGV recommended by JTColton. This looks like a great fund. Maybe this is the one that I swap for QQQ.

ralph124cf
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Re: tech funds

Post by ralph124cf » Fri May 10, 2019 6:24 pm

With no ROTH, and retired living off savings, this is the ideal time to do transfers from IRA to ROTH at super low tax rates.

Ralph

Topic Author
rondebbs
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Joined: Fri Apr 18, 2014 1:11 pm

Re: tech funds

Post by rondebbs » Fri May 10, 2019 7:09 pm

ralph124cf wrote:
Fri May 10, 2019 6:24 pm
With no ROTH, and retired living off savings, this is the ideal time to do transfers from IRA to ROTH at super low tax rates.

Ralph
I think this is great advice. I have been renting out my California condo for the last 8 years. Tenant is moving out this month. I will move in and start repairs/upgrades. If I do not sell it in 2019 (high capital gains from condos sale) then I will use this low tax year to transfer to Roth or sell/unlock some of the gains in my taxable account (either of these will let me get rid of taxes now as I'm in this low tax year). If I sell the condo this year I will be in a high tax bracket and will need to do the Roth conversion/sell taxable gains (taxable account) next year.

retire2022
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Re: tech funds

Post by retire2022 » Fri May 10, 2019 7:12 pm

rondebbs wrote:
Fri May 10, 2019 6:03 pm
JTColton wrote:
Thu May 09, 2019 9:14 am
I like IGV iShares Expanded Tech Sector - Software, large exposure to cloud/virtual service companies Adobe, Visa/MC, etc.
Wow I just looked at IGV recommended by JTColton. This looks like a great fund. Maybe this is the one that I swap for QQQ.
ron
morningstar rating four stars

the expense ratio is 0.47 for IGV

88 stocks, portfolio turnover is 12%

10 year performance is 498%

https://www.morningstar.com/etfs/BATS/IGV/quote.html

here is side by side comparison
http://quotes.morningstar.com/chart/etf ... 2%3A955%7D

Topic Author
rondebbs
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Re: tech funds

Post by rondebbs » Sat May 11, 2019 11:27 am

Thanks retire 2022. I wonder why IGV expense ratio is so high? Maybe it is OK it seems to perform exceptionally.

retire2022
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Re: tech funds

Post by retire2022 » Sat May 11, 2019 11:47 am

rondebbs wrote:
Sat May 11, 2019 11:27 am
Thanks retire 2022. I wonder why IGV expense ratio is so high? Maybe it is OK it seems to perform exceptionally.
difference in 0.47 is not worth it in my opinion don't forget for difference of more 0.17%, and 12% turnover rate higher than others which means more trading, concentrated position versus QQQ. This is in my opinion not worth the added risk which is reflected in IGV performance.

You can see this in the latest graph

If you agree with BH approach in lower Expense Ratio, with diverse portfolio, than staying with QQQ is essentially the same.

My choice in VGT is only 5% of my entire portfolio

I suggest you use Morningstar X-Ray Tool or Vanguard Portfolio Watch if you have not done so to check out your Asset allocation, so you can be more objective

viewtopic.php?f=10&t=150267&hilit=x+ray+tool

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Wiggums
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Re: tech funds

Post by Wiggums » Sat May 11, 2019 11:57 am

retire2022 wrote:
Sat May 11, 2019 11:47 am

I suggest you use Morningstar X-Ray Tool or Vanguard Portfolio Watch if you have not done so to check out your Asset allocation, so you can be more objective

viewtopic.php?f=10&t=150267&hilit=x+ray+tool
This is really good advice and easy to do.

retire2022
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Re: tech funds

Post by retire2022 » Sat May 11, 2019 12:03 pm

Wiggums wrote:
Sat May 11, 2019 11:57 am
retire2022 wrote:
Sat May 11, 2019 11:47 am

I suggest you use Morningstar X-Ray Tool or Vanguard Portfolio Watch if you have not done so to check out your Asset allocation, so you can be more objective

viewtopic.php?f=10&t=150267&hilit=x+ray+tool
This is really good advice and easy to do.
Thank you Wiggums, a little background been investing since 1987 stock market crash before this forum, done stocks, active funds, now it gotten easier with the internet.

I am a strong proponent of doing research and objective measuring and being self aware of one's actions.

retire2022
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Re: tech funds

Post by retire2022 » Mon May 13, 2019 1:59 pm

Op

And all I canceled my initial limit order on sat for $200 per share to $197 per share and canceled that to put in order for $185 pershare.

If had stayed with initial order i would had hit the asking price of $200 now it is hovering around 199-198

I will wait until it goes further down i will be ok with $185 be approx 8% correction

If i dont get it i will still have cash no biggie this is fun.

bizkitgto
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Re: tech funds

Post by bizkitgto » Mon May 13, 2019 11:38 pm

The S&P 500 is overweight in tech at the moment ~20% tech.
Keep it simple: 20% BND, 50% VTI and 30% VXUS

Valuethinker
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Re: tech funds

Post by Valuethinker » Tue May 14, 2019 4:52 am

bizkitgto wrote:
Mon May 13, 2019 11:38 pm
The S&P 500 is overweight in tech at the moment ~20% tech.
The problem is definitional, in part. What constitutes a tech stock?

Netflix is a consumer stock. Conversely Google is almost entirely B to B to C. Amazon is B to C but AWS is B to B. Apple is a consumer stock, primarily.

So what is "tech" gets blurred. Most of us would agree Oracle or Microsoft are, but Amazon? Yes given the importance of AWS in terms of profits and cash flow. Netflix? No. But it totally requires technology to work. Verizon?

It's not clear to me the S&P 500 is "Overweight" in tech stocks given the importance of tech and the HQ location of the world's largest tech companies.

Taiwan. 25% of the market in Taiwan Semiconductor. That feels "overweight" in tech.

What is true is that the valuations of some tech stocks have really moved up. We are not seeing 2000-level nosebleeds on no earnings valuations, but these companies are on big multiples.

I have experienced this before - successive disappointments on earnings lead both to falls in estimates (analyst forecasts) but also falls in the PE the market applies to those earnings -- discounting future disappointments.

So that's my bear case. Not that these stocks are bad, but that they lose momentum and the market punishes them for it.

So far I have been absolutely, totally, 100% wrong ;-). :oops:

retire2022
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Re: tech funds

Post by retire2022 » Fri May 17, 2019 12:49 pm

Ron

Check out this Bloomberg article on 20 year QQQ etf, no longer tech fund and which follows NASDAQ 100 and how they have changed.

40% technology & 60% non tech

Not necessary a passive fund.

Tech not necessary the same pe ratio during the first tech bubble, and may not pop.

https://www.bloomberg.com/news/articles ... -about-qqq

retire2022
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Re: tech funds

Post by retire2022 » Fri May 17, 2019 10:44 pm

Ron check out this discussion on VSTAX & QQQ

viewtopic.php?p=4547819#p4547819

retire2022
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Re: tech funds

Post by retire2022 » Mon Jun 03, 2019 4:00 pm

Ron and all I decided to go in at $190 per share, with limit order of 190 @ 487 shares, put it in and the sale was executed, it went as low as 189 but I didn't want to stay on the screen even though I was off from work on vacation.

I've since canceled the 185 share order, I like etfs :)

edit 2/8/2020: all I'm up as of last friday $47,804.03 paper profit

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