A Good Technology Fund or EFT?

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retire2022
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Re: A Good Technology Fund or EFT?

Post by retire2022 »

op

good read on tech stock WSJ

https://www.wsj.com/articles/techs-infl ... 1602894413

Technology companies are set to end the year with their greatest share of the stock market ever, topping a dot-com era peak in the latest illustration of their growing influence on global consumers.

Companies that do everything from manufacturing phones to operating social-media platforms now account for nearly 40% of the S&P 500, on pace to eclipse a record of 37% from 1999, according to a Dow Jones Market Data analysis of annual market-value data going back 30 years. Apple Inc., AAPL -1.40% which earlier this year became the first U.S. company to hit a $2 trillion market capitalization, accounts for more than 7% of the index on its own. Early last month, it accounted for 8% of the S&P, the largest share ever for any stock in data going back to 1998.
Last edited by retire2022 on Fri Oct 16, 2020 10:52 pm, edited 1 time in total.
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nedsaid
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Re: A Good Technology Fund or EFT?

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abuss368 wrote: Wed Sep 23, 2020 7:43 pm Bogleheads -

I am well aware of the risk of sector funds. In looking at technology funds, what is a good fund or ETF on the market that includes all the tech heavyweights? Apple, Microsoft, Facebook, Google, Amazon, Zoom, etc.

Vanguards Information Technology fund excludes Amazon as that is a consumer staple. It may exclude other tech companies as well.

Note: In full disclosure, before anyone gets excited, my son is playing a stock picking games on CBS Marketwatch with friends. He wants to pick a Technology fund and a bunch of individual stocks. I convinced him to also include Total Stock, which he did. I hope he picks a Technology fund and other stocks and then can see how it performs and learns overall.

Is there an iShares fund or ETF that is more of a pure play?
My attention has been drawn to the ARK ETFs which invest in disruptive technologies. These are expensive by Boglehead standards with expense ratios of 0.75%. Not a recommendation, do your own research, but these are exciting high octane and "Tiger in the Tank" investments. These ETFs contain such things as Tesla and Blockchain. Pretty risky but exciting. I do not own these myself.
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Re: A Good Technology Fund or EFT?

Post by abuss368 »

LiveSimple wrote: Fri Oct 16, 2020 7:56 pm
abuss368 wrote: Fri Oct 16, 2020 3:11 pm
SquawkIdent wrote: Fri Oct 16, 2020 1:40 pm PRGTX - T Rowe Price Global Technology Fund
Thanks! I think my kids game is on to something! Maybe a tech fund is better than international!
Abuss368, did you made a decision tech or no tech :sharebeer
I am not buying technology! This thread was related (opening post) to my kid who is playing a stock picking game with his buddies on MarketWatch. The game is for a year. Reminds me of the Bogleheads game of guessing where the S&P 500 will finish.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: A Good Technology Fund or EFT?

Post by abuss368 »

nedsaid wrote: Fri Oct 16, 2020 10:38 pm
abuss368 wrote: Wed Sep 23, 2020 7:43 pm Bogleheads -

I am well aware of the risk of sector funds. In looking at technology funds, what is a good fund or ETF on the market that includes all the tech heavyweights? Apple, Microsoft, Facebook, Google, Amazon, Zoom, etc.

Vanguards Information Technology fund excludes Amazon as that is a consumer staple. It may exclude other tech companies as well.

Note: In full disclosure, before anyone gets excited, my son is playing a stock picking games on CBS Marketwatch with friends. He wants to pick a Technology fund and a bunch of individual stocks. I convinced him to also include Total Stock, which he did. I hope he picks a Technology fund and other stocks and then can see how it performs and learns overall.

Is there an iShares fund or ETF that is more of a pure play?
My attention has been drawn to the ARK ETFs which invest in disruptive technologies. These are expensive by Boglehead standards with expense ratios of 0.75%. Not a recommendation, do your own research, but these are exciting high octane and "Tiger in the Tank" investments. These ETFs contain such things as Tesla and Blockchain. Pretty risky but exciting. I do not own these myself.
A technology fund paired with an S&P 500 or Total Stock would have such a large allocation (read overweight) to technology. Today’s companies are not like 1999 and are printing money like a central bank. The risk to technology is still there with a very short lifespan and shelf life. While this is not 1999, I remember those lessons well.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: A Good Technology Fund or EFT?

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abuss368 wrote: Sat Oct 17, 2020 6:45 am
LiveSimple wrote: Fri Oct 16, 2020 7:56 pm
abuss368 wrote: Fri Oct 16, 2020 3:11 pm
SquawkIdent wrote: Fri Oct 16, 2020 1:40 pm PRGTX - T Rowe Price Global Technology Fund
Thanks! I think my kids game is on to something! Maybe a tech fund is better than international!
Abuss368, did you made a decision tech or no tech :sharebeer
I am not buying technology! This thread was related (opening post) to my kid who is playing a stock picking game with his buddies on MarketWatch. The game is for a year. Reminds me of the Bogleheads game of guessing where the S&P 500 will finish.
Sure I realized after responding. Thanks
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Re: A Good Technology Fund or EFT?

Post by abuss368 »

LiveSimple wrote: Sat Oct 17, 2020 7:32 am
abuss368 wrote: Sat Oct 17, 2020 6:45 am
LiveSimple wrote: Fri Oct 16, 2020 7:56 pm
abuss368 wrote: Fri Oct 16, 2020 3:11 pm
SquawkIdent wrote: Fri Oct 16, 2020 1:40 pm PRGTX - T Rowe Price Global Technology Fund
Thanks! I think my kids game is on to something! Maybe a tech fund is better than international!
Abuss368, did you made a decision tech or no tech :sharebeer
I am not buying technology! This thread was related (opening post) to my kid who is playing a stock picking game with his buddies on MarketWatch. The game is for a year. Reminds me of the Bogleheads game of guessing where the S&P 500 will finish.
Sure I realized after responding. Thanks
Although I will say there are days if given the choice I think I would jump on the technology bandwagon rather than international! Jump on it and watch it like a hawk.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: A Good Technology Fund or EFT?

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abuss368 wrote: Sat Oct 17, 2020 6:49 am
nedsaid wrote: Fri Oct 16, 2020 10:38 pm
abuss368 wrote: Wed Sep 23, 2020 7:43 pm Bogleheads -

I am well aware of the risk of sector funds. In looking at technology funds, what is a good fund or ETF on the market that includes all the tech heavyweights? Apple, Microsoft, Facebook, Google, Amazon, Zoom, etc.

Vanguards Information Technology fund excludes Amazon as that is a consumer staple. It may exclude other tech companies as well.

Note: In full disclosure, before anyone gets excited, my son is playing a stock picking games on CBS Marketwatch with friends. He wants to pick a Technology fund and a bunch of individual stocks. I convinced him to also include Total Stock, which he did. I hope he picks a Technology fund and other stocks and then can see how it performs and learns overall.

Is there an iShares fund or ETF that is more of a pure play?
My attention has been drawn to the ARK ETFs which invest in disruptive technologies. These are expensive by Boglehead standards with expense ratios of 0.75%. Not a recommendation, do your own research, but these are exciting high octane and "Tiger in the Tank" investments. These ETFs contain such things as Tesla and Blockchain. Pretty risky but exciting. I do not own these myself.
A technology fund paired with an S&P 500 or Total Stock would have such a large allocation (read overweight) to technology. Today’s companies are not like 1999 and are printing money like a central bank. The risk to technology is still there with a very short lifespan and shelf life. While this is not 1999, I remember those lessons well.
My ability to move the markets is non-existent. Some time ago, I jokingly put a buy on US Value: Large Value, Mid-Value, and Small-Value. I think StLutz put me up to it. For effect, just like Cramer, I hit the buy button. Buy-buy. Buy-buy-buy. Then I sort of reverse trolled the Small Value threads begging people to sell their Value investments, my thinking was that capitulation by the Value diehards would spark the next Value trend in the market. Finally, I joked about recommending that Bogleheads sell everything and put it all in the FAANG stocks or better yet Google. I couldn't start a buying panic in the High Tech and Internet stocks.

My comments about the ARK ETFs are not an attempt to foment a High Tech buying panic. These ETFs invest in disruptive technologies such as Artificial Intelligence, Electric Cars, Blockchain, and Crypto-Currency. Our lives are changing in ways we would not have dreamed about twenty years ago and the recent Covid-19 pandemic have accelerated those trends. Not a recommendation but they are worth a look.

There is also the possibility that many so-called Value companies won't be around in 10-20 years and perhaps more traditional forms of Value investing are dead. Maybe we will have to redefine Value.

My view is that Value is not dead and I am not predicting doom for the High Tech and Internet sectors. I might underweight the big High Tech/Internet stocks for a while but I certainly don't want to be out of them altogether. The world really is changing, by how much is up for debate.

Pretty much what I am doing is having a bit of fun and doing a thought experiment of thinking the unthinkable at the same time. Times are a changin'.
A fool and his money are good for business.
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Re: A Good Technology Fund or EFT?

Post by abuss368 »

nedsaid wrote: Sat Oct 17, 2020 11:45 am
There is also the possibility that many so-called Value companies won't be around in 10-20 years and perhaps more traditional forms of Value investing are dead.
However, if certain value companies are gone in 20 years, they will be replaced by new value companies. Over the next 20 years there will be today’s growth or mature companies, moving towards value.

Think Microsoft (which defied the expectation). For a while most investors wrote that company off as its best days were past. It was moving from new tech to old tech. It was going to be a value company. Many companies (probably non tech companies) would slot into the value silo. They generate cash, have low earnings growth, and increase dividends.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: A Good Technology Fund or EFT?

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abuss368 wrote: Sat Oct 17, 2020 11:50 am
nedsaid wrote: Sat Oct 17, 2020 11:45 am
There is also the possibility that many so-called Value companies won't be around in 10-20 years and perhaps more traditional forms of Value investing are dead.
However, if certain value companies are gone in 20 years, they will be replaced by new value companies. Over the next 20 years there will be today’s growth or mature companies, moving towards value.

Think Microsoft (which defied the expectation). For a while most investors wrote that company off as its best days were past. It was moving from new tech to old tech. It was going to be a value company. Many companies (probably non tech companies) would slot into the value silo. They generate cash, have low earnings growth, and increase dividends.
I am soooo old, that I bought Microsoft when it was considered a Value stock. I also bought Applied Materials some time ago because it looked relatively cheap. I still hold both, I hold all of my Microsoft and 1/3 of my original stake in Applied Materials. Value can be extended to the Technology sector, I have done it myself. Both have been terrific investments.
A fool and his money are good for business.
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Re: A Good Technology Fund or EFT?

Post by abuss368 »

nedsaid wrote: Sat Oct 17, 2020 11:58 am
abuss368 wrote: Sat Oct 17, 2020 11:50 am
nedsaid wrote: Sat Oct 17, 2020 11:45 am
There is also the possibility that many so-called Value companies won't be around in 10-20 years and perhaps more traditional forms of Value investing are dead.
However, if certain value companies are gone in 20 years, they will be replaced by new value companies. Over the next 20 years there will be today’s growth or mature companies, moving towards value.

Think Microsoft (which defied the expectation). For a while most investors wrote that company off as its best days were past. It was moving from new tech to old tech. It was going to be a value company. Many companies (probably non tech companies) would slot into the value silo. They generate cash, have low earnings growth, and increase dividends.
I am soooo old, that I bought Microsoft when it was considered a Value stock. I also bought Applied Materials some time ago because it looked relatively cheap. I still hold both, I hold all of my Microsoft and 1/3 of my original stake in Applied Materials. Value can be extended to the Technology sector, I have done it myself. Both have been terrific investments.
There is an old saying that “there is always a bull market out there”. That is what makes a “traditional” portfolio of US and International stocks and bonds so challenging. International just stinks for 12 years or more and cumulatively it stinks for the past 30!

I recently read Dr. Bernstein where he basically said the single most important decision is the allocation between stocks and bonds. After that, how an investor breaks down the stock allocation is not as important. There is something to that.

I think sometimes investors spend a lot of time attempting to find the optimal portfolio and the best, which does not exist in the present and is only known in hindsight. It is more investor behavior and what an investor can stick with in all markets.

Technology is here and building since 2000. It ain’t going back. Our lives are changing like never before and scary what is to come. We could be looking back in 10-20 years laughing and saying “remember when we thought tech was so overvalued, now look at it” with tons of millionaires minted along the way.

International reminds me of older companies like oil and manufacturing. Needed sour sure but low earnings growth.

I can imagine my sons age group. All they talk about (investing wise) and use all day is technology. This is different than 20 years ago and you can see it everyday.

Maybe sector funds like technology will become a mainstay in portfolios of my kids generation. Would not surprise me in the least.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: A Good Technology Fund or EFT?

Post by nedsaid »

abuss368 wrote: Sat Oct 17, 2020 12:11 pm
nedsaid wrote: Sat Oct 17, 2020 11:58 am
abuss368 wrote: Sat Oct 17, 2020 11:50 am
nedsaid wrote: Sat Oct 17, 2020 11:45 am
There is also the possibility that many so-called Value companies won't be around in 10-20 years and perhaps more traditional forms of Value investing are dead.
However, if certain value companies are gone in 20 years, they will be replaced by new value companies. Over the next 20 years there will be today’s growth or mature companies, moving towards value.

Think Microsoft (which defied the expectation). For a while most investors wrote that company off as its best days were past. It was moving from new tech to old tech. It was going to be a value company. Many companies (probably non tech companies) would slot into the value silo. They generate cash, have low earnings growth, and increase dividends.
I am soooo old, that I bought Microsoft when it was considered a Value stock. I also bought Applied Materials some time ago because it looked relatively cheap. I still hold both, I hold all of my Microsoft and 1/3 of my original stake in Applied Materials. Value can be extended to the Technology sector, I have done it myself. Both have been terrific investments.
There is an old saying that “there is always a bull market out there”. That is what makes a “traditional” portfolio of US and International stocks and bonds so challenging. International just stinks for 12 years or more and cumulatively it stinks for the past 30!

I recently read Dr. Bernstein where he basically said the single most important decision is the allocation between stocks and bonds. After that, how an investor breaks down the stock allocation is not as important. There is something to that.

I think sometimes investors spend a lot of time attempting to find the optimal portfolio and the best, which does not exist in the present and is only known in hindsight. It is more investor behavior and what an investor can stick with in all markets.

Technology is here and building since 2000. It ain’t going back. Our lives are changing like never before and scary what is to come. We could be looking back in 10-20 years laughing and saying “remember when we thought tech was so overvalued, now look at it” with tons of millionaires minted along the way.

International reminds me of older companies like oil and manufacturing. Needed sour sure but low earnings growth.

I can imagine my sons age group. All they talk about (investing wise) and use all day is technology. This is different than 20 years ago and you can see it everyday.

Maybe sector funds like technology will become a mainstay in portfolios of my kids generation. Would not surprise me in the least.
Just remember that too high of expectations can turn even great companies into mediocre investments. Or as Warren Buffett said, "Geometric progressions eventually forge their own anchors." I believe that valuation matters for even the best of the High Tech and Internet companies. Invest in those great companies, just don't overpay.
A fool and his money are good for business.
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Re: A Good Technology Fund or EFT?

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abuss368 wrote: Sat Oct 17, 2020 12:11 pm Maybe sector funds like technology will become a mainstay in portfolios of my kids generation. Would not surprise me in the least.
Good thought, only time can tell. Yes as the new time, new companies do come and may be this period is technology.
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Re: A Good Technology Fund or EFT?

Post by abuss368 »

LiveSimple wrote: Sat Oct 17, 2020 12:21 pm
abuss368 wrote: Sat Oct 17, 2020 12:11 pm Maybe sector funds like technology will become a mainstay in portfolios of my kids generation. Would not surprise me in the least.
Good thought, only time can tell. Yes as the new time, new companies do come and may be this period is technology.
There may be something to this. I think the big sectors are technology, real estate, and healthcare. 25% of the S&P 500 is technology and healthcare (think baby boomers).

A lot of exciting things going on there.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: A Good Technology Fund or EFT?

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abuss368 wrote: Sat Oct 17, 2020 12:11 pm
Maybe sector funds like technology will become a mainstay in portfolios of my kids generation. Would not surprise me in the least.
Who knows. It's all speculation.
The best thing that could happen is for your son to lose this stock picking game. Better yet let him setup two accounts. One with all the individual tech stocks and one with only a total stock market index fund. See what happens in a few years.
Why waste time thinking about what tech companies will do in the future? Just own them all along with everything else.
You can't go wrong.
“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
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Re: A Good Technology Fund or EFT?

Post by abuss368 »

Rowan Oak wrote: Sat Oct 17, 2020 3:38 pm
abuss368 wrote: Sat Oct 17, 2020 12:11 pm
Maybe sector funds like technology will become a mainstay in portfolios of my kids generation. Would not surprise me in the least.
Who knows. It's all speculation.
The best thing that could happen is for your son to lose this stock picking game. Better yet let him setup two accounts. One with all the individual tech stocks and one with only a total stock market index fund. See what happens in a few years.
Why waste time thinking about what tech companies will do in the future? Just own them all along with everything else.
You can't go wrong.
I totally agree. So with the MarketWatch game, I had him place Total Stock Index ETF - VTI and then he picked the rest. I am hoping the individual stocks underperform and Total Stock leads the way (which it has). This would be a great learning lesson.
John C. Bogle: “Simplicity is the master key to financial success."
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