XLK - IYW: Hope You Like 3 Stocks Making Up 50% Of Your Tech Fund
2024-06-20 18:00:00 ET
Summary
- Tech sector momentum driven by AI/Nvidia.
- The iShares U.S. Technology ETF tracks top tech stocks.
- High concentration risk with top 3 holdings making up 50% of the portfolio, expensive valuations, and sector volatility.
Tech, tech, tech. It's all any investor wants, and has been where all the momentum has gone (primarily due to the AI/Nvidia craze). We are in an age of innovation, but also in an age of FOMO, where the tech sector looks to have gotten way ahead of itself. I am negative on the sector overall at this point in the cycle, but also recognize I've been wrong so far. If you believe, unlike me, that the tech sector still has more leadership in it and room to run, you may want to consider the iShares U.S. Technology ETF ( IYW )....
IYW: Hope You Like 3 Stocks Making Up 50% Of Your Tech Fund