ETF for technology tilt

Investing / Portfolios
1

I’ve been investing in a bunch of single tech stocks to add technology tilt to my portfolio (FAANGs & co) and would like to rebalance and consolidate this part of my part into 1-2 ETFs

But struggling to find a perfect choice for that. Technology ETFs like XLK and VGT have weird selection criterias that don’t include even half of FAANG. QQQ’s portfolio is better, but it’s bit expensive (0.20% TER), i don’t like some junk like TSLA in it, and lack of some good non-nasdaq stuff…

What ETFs are you using for technology tilt in your portfolio?

3

Maybe you can do a mix with VGT (tech) and VOX (or FCOM, XLC) (communication), or take a growth fund.
In any case, on the US market, the only ETF tracking the NASDAQ is QQQ.

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4

Telecom etfs are even more weird. Mixing faangs and some other comparable companies with telecom (Verizon, AT&T, Comcast, etc) that have very different fundamentals. QQQ sounds like the lesser evil, despite an occasional junk in the top.

Growth factor etfs are seem like they are only about half tech - tech heavy at the top.

But why? Tech is the best thing happened to stock markets in the last decades. It’s expensive for a reason - noone’s selling quality companies for cheap. Why load up on cheap junk instead?

8

Afaik theres FNGU and FNGD which track tech stocks with 3x leverage xD

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I need the ETF for long term holding to avoid triggering capital gains (going to be non-CH resident soon, so have to take that into consideration). Leveraged ETFs are a bad idea for the long term, it’s for people who are bad at math.

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11

What exactly did you want me to take away from this read? I already knew tech is outperforming, no news.

I cannot use leveraged ETFs due to my long term holding constraints

ARKQ? Pretty expensive at 0.75% TER and some of top holdings aren’t exactly the kind of tech I’m interesting in (asset light, highly profitable enterprises with great margins)

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I use leverage ETFs for the long term

14

Well this is the bit that I disagree with. My thesis is tech/software will continue eating the world for at least a few more decades. It’s profitable, growing, asset light, high margin industry. Besides the (justifiably) high price, what’s not to like? “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

I don’t exactly understand what’s its holding and what is its strategy. But it doesn’t seem to be tech - fact sheet says tech sector percentage is about the same as in s&P500 (25-27%). Anyway, as a US mutual fund it’s open for business only with US residents.

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I like this one, focussed on “robotics and automation”.
Has a fair mix of companies I wouldn’t mind to own individually as well (NVDA, AAPL, ADSK, NOW, ISRG etc.).
So I might pop it up for a few % of my portfolio “for fun”.

https://www.ishares.com/ch/individual/en/products/284219/ishares-automation-robotics-ucits-etf-usd-acc-fund

But for some reason it’s not available on US stock exchanges.
Where would you grab it?

Although I am confused because there is also this - is it the same thing? :smiley: (holdings look different)

16

Way too expensive (0.45% TER). Personally even QQQ is a tad on the expensive side for me

Where’s FB and alphabet? And what’s up with xiaomi at #1 holding? They make products I want to buy, but are NOT a business I’d want to buy. Commoditized hardware business, they usually suck, razor thin margins (and NOT in a good amazon way) and very tough competition.

It is not a US ETF so why would they have? American stocks only. Or at least american depository receipts.

I think I’m going to load up on VUG if market drops further. 0.04% TER and all the good companies I like in the tpo.

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17

Bought some MGK in the end. Only a slightly higher TER, but also more concentrated in mega caps (FAANGS). Closest portfolio to QQQ that I could find

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