FTEC
Fidelity® MSCI Information Technology Index ETF
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Is a mix of VOO, SCHD, SCHG a good start for a Roth IRA at 28?
Portfolio choices for taxable account for growth and minimize taxes?
Is my Roth IRA Portfolio Too Risky/Diversified Enough?
Do you ever re-balance your portfolio? Or do you just hold onto the growth stocks you bought in 2021?
Realistically what does the tax advantage look like for ETF VS. Mutual
Is it silly to hold both QQQ and FTEC (or VGT) at the same time?
Service to view combined percentage stock holdings from multiple ETFs?
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>50% FZROX (basically VOO but no fees?) VOO + smaller US companies, but basically yes >20% FZILX (international emerging markets with no fees) emerging *and* developed markets >20% FTEC (fidelity tech etf) This is fine as long as you can stomach more volatility for a longer period of time >10% FESM (fidelity small cap) No need, since this is already covered in FZROX. Unless you're purposefully tilting towards small cap. Overall: looks good to me. I'd get into the market immediately. If you hadn't rolled over it's not like you would've moved all your 401k to cash.
FTEC or VGT are better
FTEC not having GOOGL, META and Neflix is one of the down sides. The .08 expense ratio is killer though. I own it and bought the other 3 as individual stocks. Served me VERY well for last 10yrs or so.
Both. I have VT at 25% for diversity, up 21% and I believe technology in general will continue to dominate the markets. So I have QQQM 32% up 20% and FTEC 32% up 21%
Pick what works for you and let's you sleep at night. -The Psychology of Money 32%QQQM 32#%FTEC 24%VT 4 shares FUTY and 12 shares APLD in my wife's Roth. I have the same at a different % and instead of FUTY-RING with stocks. I sleep just fine.
Thank you for the correction for FTEC. It looks like you favor the rational reminder pod casts and I appreciate the share. I might be a fan. I agree sector bets are not a bet I would like to make as well. They are interesting to read into. The irrational exuberance is a good point. It's the popular explanation behind the dot com bubble, housing crisis/recession, and even internationally with china's building frenzy. It's a story repeated monthly through 2025, 2024, 2023, etc. The biggest mistake I can make right now other than to buy nothing is to buy any individual stocks. You might be familiar with the counter argument of over diversification or "Diworsification." Over complication, diminished returns, higher costs, and no meaningful reduction in risk. I don't want to buy outside my field of competence. I will brainstorm a 60/30/5/5 or 40/20/15/15 split between SWPPX/QQQM/SWISX/SWSSX.
Avantis and Dimensional seem to be some of the favorite names when it comes to small value. >I appreciate the recommendation of FYEC and VGT. I will read more into them FTEC. They're true tech funds, but exclude some companies you may consider to be tech but the market considers as something else (Amazon, Tesla, Alphabet/Google, Meta/Facebook for example are all non-tech by GICS classification). Sector bets aren't a bet I'd make, as they're uncompensated risk. Favored sectors change from time to time and it isn't always the hot new tech with the best returns. I have several links that explain that, with sources here: * https://www.pwlcapital.com/investing-technological-revolutions/ * https://rationalreminder.ca/podcast/123 * https://rationalreminder.ca/podcast/156 (climate change, clean energy related especially) * https://rationalreminder.ca/podcast/183 In the first link, do a CTRL+F for "irrational exuberance" and read at least a few paragraphs before and after that.
Don't focus on large growth. Small value has tended to win in the long run. The inclusion criteria for QQQ(M) is absolute nonsense. If you do want a tech tilt, there are tech funds that don't discriminate based on the exchange. FTEC, VGT to name 2.
Bought some FTEC good for the day fellow WSB'ers
Up 20.5%. Not bad considering I held on to Chipotle and Apple too long. Besides those two which I sold in Q4 and purchased Google, everything else is FTEC, FZROX, and QQQM.
19% up this year in early leanFIRE, while holding about 20% in bond and money market funds (so a little stock heavy for a semi-retired person), and that's after withdrawals of about 2% for living expenses. Mostly in VPMAX, VGHAX and VGT/FTEC with a smattering of FSELX, COST, REGN and AAPL. I've been investing since 1996, averaging 10-11% over the past three decades, and averaging 10.2% over the past 10 years as my portfolio gradually shifted to be more conservative.
19% up this year in early leanFIRE, while holding about 20% in bond and money market funds (so a little stock heavy for a semi-retired person), including withdrawals of $23,500 for living expenses. Mostly in VPMAX, VGHAX and VGT/FTEC with a smattering of FSELX, COST, REGN and AAPL. I've been investing since 1996, averaging 10-11% over the past three decades, and averaging 10.2% over the past 10 years as my portfolio gradually shifted to be more conservative.
I agree with you. I chose FTEC for the lower expense ratio and slightly better allocation in my opinion. Basically the same as VGT though
I like SOXQ better than SOXX. SOXQ has performed better, has a higher dividend yield, and has a lowest fee of any semiconductor ETF. SMH performs even better for semiconductors, but it has way more Nvidia concentration. Given I already have plenty of Nvidia in my portfolio, I passed on this one. I don’t see a perfect match for SKYY, but I can tell you about 77% of the holdings are in FTEC and VGT which are both very popular. I also had a negative experience First Trust ETFs twice now, nothing nefarious but lousy fund management, so I avoid them now.
Seems like a lot of work that boils down to taking profits at 15%. Why not just go with SMH, VGT, FTEC, QQQM or some combo?
It’s best to invest it all the second you get the money. This is best over 70% of the time. Sometimes it’s the wrong call but because it’s more often the right call you’ll outperform the other approach longterm. You could start auto investing weekly or even daily (you might have to set up 5 weekly payments for each day of the week to do daily) then you’d catch every dip but that means you’d also have money sitting in cash for most of the month. I don’t recommend it but you could always leave 10% of your money in cash when you do your monthly transfers and use that for buying dips. Honestly though, if you’re only investing in an all world ETF rather than a more volatile fund like FTEC or QQQM, those dips aren’t going to be that big. I always lump sum value and blend funds and buy dips for growth funds.
Think about sector based ETFs, which can be quite lively from a growth standpoint. Losses from any one company in the fund are generally canibalized by the others, so you'll be moving upwards with the sector even if headline firms take a hit. I'm in tech and am convinced that the picks and shovels plays on the AI boom are no bubble in the long run even if there's some sort of sideways dip. The hyperscalers/trainers are risky investments in a fast moving environment with a lot of the best firms not having made an IPO and the threat of Chinese open source models beating them anyway. Supporting this effort is the semiconductor industry, which has hit an incredible level of sophistication and profitability. IMO, the best way in is with one of the ETFs that track the old PHLX Philadelphia Semiconductor index: SOXX, SOXQ (cheap expense ratio), or SMH. Start researching semiconductor fabrication and things like the 2nm process or ASML products. Then when the market dips, you have faith in the 10 year trajectory of the industry and don't hit the sell button. If the data centers flounder for any reason, the Edge chip market will likely thrive (Apple, Qualcom, ARM, etc.). Otherwise, all those VOO type indexes are great. I've got FIDU in my back pocket as something safe that could overperform too. I like FTEC as an alternative to QQQ for whatever reason.
For you I think two fund would be great. Personally I prefer VTI over VOO because it has thr Mid and Small caps of the US market which increase diversification significantly, and help your portfolio recover faster in downturns. On the topic of QQQ Id biff it. The "Nasdaq 100" is well marketed but really a nothingburger. If you're looking to add a growth tilt, use a growth fund like SCHG. If you're looking for a tech fund, use something like FTEC. Or use both!! Just dont use something like QQQ because exchanges are not a factor like growth, tech, or anything else is.
FTEC and VGT have better performance than QQQM so you are incorrect. OP already has VOO and VXUS. They don’t need any more diversification
Call me crazy but I'm 50% VGT 10% SMH 15% FTEC 10% INTL 5% GLD
FTEC or VGT instead of QQQM
QQQ isn't tech, so no. VGT or FTEC or similar would be a better fit.
Just a small suggestion - FTEC is pretty much the same as VGT but has a lower fee.
This is why u buy FTEC and ignore the noise. Just win
I have a 30+ year portfolio but I'm growing a little hesitant with the tech portion of my Roth IRA. My taxable cash account is all 70% VT and then 30% large-cap tech stocks and mega caps. My 401k is 50% VT and 50% Tech FTEC. However, my Roth IRA is all tech, FTEC and QQQ. What can I do over a 30-year horizon to add something with a similar growth trajectory as tech that isn't tech? Everything is tech, VOO is already almost half tech, and I'm 100% tech. What etf do I add that has a similar growth trajectory that isn't tech for a high-risk, high growth, long-term portfolio?
I certainly wouldn't have VGT or FTEC as my only equity position. Yeah it has done really well over the last 10 years and I think tech will still do really pretty well over the next 10 years, but it should really be maybe at most 50% of your equity position and the other half could be something more generalized like VOO or VTI.
I would just pick one, VGT or FTEC. There is no sense in having two ETFs in your portfolio that are basically identical, it just complicates things.
FTEC is nearly identical to Vanguard's VGT ETF as it is also aiming to track the MSCI US Investable Market Index (IMI)/Information Technology 25/50 Index. It is interesting that FTEC has a few less holdings. Both have nearly identical expense ratios (0.084% and 0.09%). FTEC is much smaller though with around $16B AUM compared to VGT's $138B AUM. FTEC's inception date was 10/21/13, while VGT's was 01/26/2004. Personally I would go with VGT, but if you have a Fidelity fund that makes it easier to buy and sell their own funds it might makes sense to go with FTEC. VGT / FTEC have done very well over the last 10 years.
Yes, FTEC is nearly identical to VGT as it is also aiming to track the MSCI US Investable Market Index (IMI)/Information Technology 25/50 Index. It is interesting that FTEC has a few less holdings. Both have nearly identical expense ratios (0.084% and 0.09%). FTEC is much smaller though with around $16B AUM compared to VGT's $138B AUM. FTEC's inception date was 10/21/13, while VGT's was 01/26/2004.
I haven’t heard of FTEC I’ll look into it!
I’d go VOO, FTEC, and SCHD/DGRO
VOO + FTEC or VGT instead
I dunno - just used ChatGPT and felt like I accomplished more than I expected to - then checked NVDA after hours, currently about +5%. I would love to see Burry on CNBC. Another thing to consider 1 yr returns FTEC vs. SCHD (almost no tech) +20.7% vs. -5.97% - that is like real lifestyle differences returns. lol!!
SPLG/FTEC/FCNTX FCNTX is my exotics. I get some open AI and SpaceX exposure.
I'd like a recommendation for an ETF for a possibly 40-60 year hold, very long term, very tech. I have the usual VOO/ VXUS portfolio and short term bonds portfolio. My preference is towards tech and higher risk (open to losing 50% of it any time). I've cut it down to specifics I'm looking for 1) tech diversified and not focused on mega caps 2) has robotics and hardware 3) has a decent number of holdings, 100+ Which one would be the best out of? I am leaning towards IGM. VGT: Pro: growth Con: 50% is Nvda, Aapl, Msft, Avgo IYW: Pro: Has the robotics and hardware component Con: 45% is Nvda, Aapl, Msft IXN: Pro: Global tech Cons: Assumes the US does not dominate like the others do IGM: Pro: Evenly distributed, more emphasis on all North American Tech, and not top heavy Cons: More volatile XLK: Pro: Heavier on the full SP500 IT companies Cons: Not many, but similar to IYW. FTEC: Same as VGT Cons: Same as VGT
100% FTEC in individual, 100% FBTC in IRA and 401k
I'd like a recommendation for an ETF for a possibly 40-60 year hold, very long term. My preference is towards tech and higher risk (open to losing 50% of it any time). I've cut it down to specifics I'm looking for 1) tech diversified and not focused on mega caps 2) has robotics and hardware 3) has a decent number of holdings, 100+ Which one would be the best out of? I am leaning towards IGM. VGT: Pro: growth Con: 50% is Nvda, Aapl, Msft, Avgo IYW: Pro: Has the robotics and hardware component Con: 45% is Nvda, Aapl, Msft IXN: Pro: Global tech Cons: Assumes the US does not dominate like the others do IGM: Pro: Evenly distributed, more emphasis on all North American Tech, and not top heavy Cons: More volatile XLK: Pro: Heavier on the full SP500 IT companies Cons: Not many, but similar to IYW. FTEC: Same as VGT Cons: Same as VGT
I am a young, risk-on investor looking to maximize long-term growth while maintaining balanced exposure. I am pretty confident on my allocations but have two questions. 55% VTI 10% AVUV 10% FTEC 10% VEA 10% VWO 5% IBIT 1. Should I swap VTI for VOO to flush out the small-cap growth? Or does VTI provide better diversified exposure for the long haul (i.e. mid-caps)? 2. Increase AVUV to 15% by decreasing 55% -> 50%? Seems like small-cap value is best bet for my long-term goals, but the recent extended underperformance is daunting. Regardless, what's the best balance? The answer could depend on whether VTI or VOO is selected. Any thoughts much appreciated. Thanks in advance.
Usually yes but not always. High dividend yields erode NAV. Some companies can both have decent yields and growth like Walmart or Abbvie but look at AMD and Meta and Google...they all prioritize share price increase over dividend payouts. Obviously don't invest in hot mess penny stocks but at your age, I think you can take higher risk bets than just VOO. Maybe VGT/FTEC if you think the AI boom will continue.
I like FTEC and SPMO. These are growth ETFs. If you’re interested in steady, less volatile but incremental growth, then go for VTI, SCHG, or VOO. Determine your risk tolerance, goals and future prospects. Then, strategize, study and execute.
International stocks did very well the first quarter of this year but the last 6 months, domestic stocks have performed better especially tech etfs, SMH, FTEC, VGT.
I bought into APLD at $5.12 good choice. Archer Aviation has a lot going for it except profits. Stellantis is helping with a production facility in Atlanta. Korean Air and United Airlines are onboard. Lots of exposure coming up with The World Cup and the Olympics. I honestly think Robinhood could hit $300 next year. I know there are a lot of haters for good reasons but, there is a new generation of young investors who don't care about the Game Stop scandal and they like the format and incentives. Earnings report is coming up. Kratos Defense is another good one. Considering your picks are all technology, FTEC is a solid ETF.
Same. I also gave shares of FTEC, which hold a significant amount of NVDA, AAPL, and MSFT. that pretty much covers everything I need tech wise
1st, no one can give advice since we don't know your LT/ST gains, if it's taxable account, 2nd, the chains on FTEC VTI MAGs and similar ETf's are likely pretty illiquid, you can check spreads on 2 year legs for yourself lots of other rabbitholes here...
I love FTEC been DCA since it was $35 a piece.
When you say: “Better” I’m assuming you mean returns? Yes there are. ETFs and Funds like QQQ/QQQM, FTEC, FSPGX, just to name a few, are aggressive growth funds that focus on a particular sector or exchange, or Company cap size. Nasdaq 100 focuses on the top 100 Companies listed on the Nasdaq exchange. Not nearly as diversified as an S&P fund or a Total Index Fund. But they’re not supposed to be. These funds are for aggressive growth. They will always outperform less risky funds in an up market or a Bull Market. But in a down or bear market, you are more susceptible to a larger decline, due to them being less diversified. But for me, the reward outweighs the risk. And historically markets go up overtime. If market goes down, I keep buying. Goes sideways I keep buying. Goes up, you get the drill. If you wanna be conservative, buy the S&P or a total index ETF/Funds, and something else that is more aggressive for growth, if that helps you sleep better. I am a big proponent of the NASDAQ, because of the many Companies they housed that I personally value. And I believe these companies will continue to go up in the future for years to come. We have lost the ability to do some many things well in this country. Except Tech. It is one of the only things we still excel at business wise here. So much so when Tech is down, the market goes down with it. That sector alone has changed so many people’s lives.
QQQM only out for 5 yrs. Yes XLK, SCHG, SMH, FNGS(etn), FTEC and MAGS will easily... all higher TR from QQQM inception.
I don't think the semiconductor ETF's are good for long term I am currently torn between QQQM VS SCHG I don't like XLK and FTEC as much because they are too top heavy
I like your current portfolio but I’d change QQQM to FTEC or VGT
I’d go VOO, FTEC or VGT (I think they’re better than SMH), VYM
I would probably ditch the Japan etf, split that between the sp 500 and the all world, lower NVDA and Alphabet and put that into a Tech etf like FTEC or Nasdaq 100 etf like QQQ. Then take 1-5% (start lower to begin) and try to invest in higher risk higher reward asset like basically stock picking the next big thing. Do your research and develop high conviction. Look up the barbell method
I do think going 100% into tech will beat the market over a long period if you can stick with it through extended bear markets. However, I would recommend tech ETFs like FTEC, SMH, IGV, QTUM, maybe even CQQQ, for 50% of your portfolio. With the other 50% try a momentum strategy with single stocks, because the top growers will change year after year,decade after decade. You might also consider BTC and ETH which have an even larger potential for growth if crypto stabilizes as a true asset class. But only do any of these things if you’re trying to get rich at the risk of underperformance, which could be significant. If you stick to your current portfolio long term it is guaranteed to underperform because companies come and go, trends change, winners become losers. But the people who make the highest return are those that go all in on a single factor that happens to be the right factor, but also have the lowest return if they bet on the wrong factor.
You could go 50/50 VOO and FTEC or VGT.
If you really want tech you should pick a tech ETF like VGT or FTEC. QQQM isn’t strictly tech.
I'm a big fan of QQQM it was one of my first buys. I also very much like FTEC for its select technology concentration. I hold both in my Roth.
You could also go w an IT sector fund like XLK or FTEC and get good exposure to both plus MSFT, AAPL, ORCL, PLTR, AMD, CSCO, CRM and more.
Buy FTEC and IVV Hedge? GLD
It’s a shame FTEC doesn’t hold Google shares
Invest it monthly into a low-cost growth fund like $SCHG, $SPMO, or go full hog on technology with $FTEC. At your age, put this in a Roth IRA (up to the yearly max); the rest in a brokerage account (Fidelity, Vanguard, etc.). IF you want to dabble in some dividend paying ETF's (that are also good growth vehicles), try $CGDV. Good luck!
To each their own, but I look at options more like long term investing. I sell secured puts and covered calls and buy to close if it makes sense, ie, contract already at 30-50% of full value in a short period of time like 1st week out of a month long contract, or suspect possible downside looking at RSI/Bollinger bands plus already made good profits. I look at buying call options more like gambling and would only do that with a very small portion and we had just experienced a huge drop, and I suspect that drop was an overreaction or we will recover by my expiration date, and even then prob wouldn't hold until expiration. SPLG for small account index trading, QQQM for medium, QQQ for larger. Honestly for small account though swing trading with shares outright has been more profitable. SPMO, CGDV, FTEC, idk your account size but if goal is growth, there's some great ETFs to DCA til it's big enough to Wheel QQQ, (im doing 1dte during overbought territory, 20Delta PUTS til assigned.) But good luck regardless. Still learning too.
3 fuNd portfolio here- VOO, SPMO, FTEC
I started in my 40s as well. I have read that you need to invest $2000-2500 a month to catch up when starting at this age. I don’t have that much to invest so I’m instead investing in a higher risk portfolio. I’m not saying I recommend doing this but I either succeed or I fail and I know that a conservative boglehead 3-fund portfolio won’t get me there at this age. If I bet on the wrong funds I might make a lot less than I would with a 3 fund portfolio but if going the safe route is guaranteed to fail id rather risk it on something that has a chance even if it might end up underperforming. Most risky portfolio I’d be willing to do: SPMO, FTEC, SCHD, AVUV, FBTC, split equally, rebalancing annually for 15 years and then take a more conservative approach in retirement, maybe 30% SCHD, 30% AVIV, and 10% into the others.
I’m actually trying to decide which one to continue contributing to. FTEC is obviously pure tech and QQQM is diversified in comparison. I guess for an aggressive portfolio, FTEC is the right one.
You can double your time frame as well... if you retire at 57 you will still have some amount of equities at 77 or later. I just keep 2 core funds. But I always thought it would be interesting to hold something like FTEC or QQQM into later retirement without touching it.
Sounds good to me. I am 75% VOO, 23% FTEC and 2% IBIT across all my accounts. I'm 43 and fired 4 years ago to Mexico. I know this is a higher risk portfolio than is typically recommend but I can cut my expenses in half at any time if I need to.
If you’re trying to be aggressive I would just overindex on tech ETFs like FTEC or VGT but that’s just me.
I'd need MSTR out as well, when those two go the index will take decent sized hit. The best alternative I have found so far is FTEC (though I just found out it has a small portion of MSTR). anybody know of better alternatives
The only thing I have to say is I wish I bought more FTEC
If you're under 40 and want a vanilla account go 50/50 with any SP500 ETF and FTEC.
FTEC doesn't have a lot of volume on a daily basis, but based on its holdings, and from looking at the chart from Friday, it looks like the normal spread during regular hours is probably not more than a nickel, if that. So just log in when you're ready to do your trade, look at the bid/ask then and if it's a nickel or less, I'd say a market order would be OK if you just want to get the job done fast. Or just put in a limit order at the ask. A nickel doesn't mean shit on a $205/share stock. if you try to get cute and save a penny you could end up spending half an hour chasing a fill.
FTEC. This is for hypothetical purchase while I'm sitting at my desk at work eating lunch. I was going down a rabbit hole on how to evaluate ETF's. Not that I'm planning on trading but just educating myself. I already have 40k in FTEC and plan to leave it there. One article lead to another lead to be evaluating liquidity and ask/bid spread.
In terms of your investment strategy, it makes sense that you’re leaning toward aggressive growth given your age and time horizon. The portfolios you’re considering are all solid, and honestly, you can’t really go wrong between them, but there are a few nuances that might help you fine-tune the decision. Your first option using FSKAX, FTEC, and international exposure like FTIHX or FZILX is probably the most well-rounded aggressive strategy. It gives you broad US market exposure, tilts toward high-growth sectors with tech, and still includes global diversification. That kind of setup gives you a good shot at outperformance without putting everything on one bet. The only thing to be mindful of is the tech overweight, it can swing hard in either direction, so just be ready to stomach the volatility. The second option with VOO and QQQ has a bit more redundancy, since QQQ and VOO overlap a lot in holdings. You’re really doubling down on large-cap US, and particularly tech-heavy names. That could work really well if the AI-driven rally keeps pushing, but it’s also the most momentum-heavy of the choices. The risk there is you’re paying a premium for assets that have already had a big run, which can hurt if there’s a correction. The third option, mostly FSKAX and FTIHX, is simpler and probably smoother in terms of performance. It gives you great global diversification and lower volatility, but it’s also the most conservative of the three in terms of growth potential. That might be totally fine depending on your risk tolerance, especially if you want to leave some room for life purchases like the house or the boat. If it were me, I’d lean slightly toward option one. It captures a strong long-term growth trajectory while still spreading risk across sectors and geographies. You can always adjust over time if tech gets too overheated or if international markets underperform. And honestly, with your income and age, you’ve got plenty of room to take some calculated risks now and shift more defensively later. One last note, it’s smart that you’re considering the house and surf boat, but maybe segment your capital a bit. Keep some in HYSA or short-duration bonds if you know you’ll need it in the next year or two, and invest the rest with a 5+ year horizon. That’ll keep you from having to sell during a downturn if something big comes up.
You have a pretty long time horizon for investing, so my (17F\*) advice is to stay an aggressive investor, mostly invest in tech ETFs (FTEC, VOOG, etc.), set up recurring investments of about $10 or so every Monday, and keep your money in the market for *decades*. I know a lot of people who treat it like gambling, *please don't do that*. Otherwise it looks great! \*I'm only 17 and I'm not an expert, so please don't take my word for it. Redditors, please correct me if I'm wrong!
I’d say 5-15% in something like QQQ, FTEC, or crypto if you’re wanting to take on more risk.
You did the right thing. https://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp Buffett's ultimately successful contention was that, including fees, costs and expenses, an S&P 500 index fund would outperform a hand-picked portfolio of hedge funds over 10 years. The bet pit two basic investing philosophies against each other: passive and active investing. VTI and BFTC is fine, I have something very similar and it’s killing. you could add a growth ETF like FTEC or QQQM. Good on you for having FBTC in the Roth; make that untouchable from a tax standpoint.
If you want a small cap tilt, use small cap value, like AVUV. There's a good chance that offers a risk premium, no so much with small cap growth. There is no risk premium offered by sector funds like FTEC. The fact that tech has done great the past 10-15 years, if anything, is an indication it will not do as well in the next 10-15 years. Sector outperformance is cyclical, and tech is NOT always the big winner. Sector funds offer uncompensated risk.
I have the same allocation for all our accounts. 75%VOO and 25% FTEC for 2 Roths, 2 IRAs, HSA and taxable account.
It's just a leveraged bet on QQQ. Just own FTEC or QQQM. I worry about what happens to BTC when quantum computers crack encryption.
Thanks for letting me know, although I do want to hold FTEC, I’ll probably make it not my entire portfolio. I may diversify more with QQQM or s&p 500. Is there anything you recommend specifically? Maybe like 50/50 qqqm and s&p?
When you're buying an ETF it doesn't generally matter where you have an account: Schwab, Fidelity, Vanguard, etc. You can trade any of the ETFs through it, generally with no transaction fee. If you want diversification check VTI over QQQ (and its related funds). QQQ while more diversified than FTEC, is pretty similar, and doesn't really diversify you very much.
Thanks, I only have a fidelity account and will stick with it forever. I don’t think I want to be all in on tech, maybe 30% FTEC and 70% QQQM to still have a high tech concentration but be a little more diversified.
QQQ is a composite of the NASDAQ exchange, which is tech heavy, but it is not pure tech. FTEC is all tech. Another alternative to FTEC is VGT, Vanguards tech ETF. Vanguard and Fidelity are two great fund companies, I also like the few Schwab funds they offer, but they do not have a specific tech fund. FTEC's expense ratio is 0.08 vs VGT's 0.09. I might switch between these two in order to capture potential end of year losses for tax motivated loss harvesting, while still staying invested in tech. I think the funds are different enough for the IRS to accept that, even with the performance being identical.
I’m 16, U.S, part time employed part time student. Want to take advantage of compounding interest in Roth IRA, can max it every year. High risk tolerance and can rebalance later in life. Should I go higher risk like FTEC? Or just simple s&p 500 like FNILX (0 expense ratio w/fidelity).
I’m in the same situation as you. I’m young with a high risk tolerance, looking for something to buy for my Roth IRA and hold forever. Is FTEC a better option than something like QQQM?
Tech innovation has been changing the world for four+ decades and it continues to. The tech itself changes lives, but it's also the foundation of most of the innovation in all industries. Make sure you're tech weighting us heavy. Just strap in and wait. Think qqq or FTEC or .... I've always been a bit over weighed, but I wish I had been much more over weighted.
I have $ in various Fidelity ETFs to gain exposure to stocks I don’t own directly, knowing there’s definitely some overlap. FIDU, FSTA, FPRO, FENY, FPRO, FTEC, FMAT, FMDE, etc. Whatever brokerage you are with probably has the same.
For tech ETFs, I like FTEC for general tech, SMH for semiconductors, and IGV for software. I do think just doing ETFs is better just in case stronger companies come along. But I personally like investing in the top 1-3 holdings of SMH and IGV short term. NVDA has beaten SMH significantly every year for the past decade. I’ll likely keep investing in that for 5-10 years and then move the money to SMH eventually.
I started investing in my mid to late 40s as well. Since I don’t have a lot of time I don’t invest conservatively at all (I’ll either have the money in retirement or I won’t) so I avoid bonds, high dividends and large value. I invest heavily into tech because it has doubled the performance of the SP 500 over the last 30 years. Tech is very volatile but if you can get extra cash and invest when it’s down it will have even better. I have more faith that it will outperform everything else over the next 20 years. A very risky portfolio that has been recommended to me: 20% SPHQ, 20% SPMO, 15% XMMO, 15% FTEC, 15% IGV, 15% SMH. This will cover you in all phases of the market cycle but you’ll be betting on US outperforming international long term. I think that’s a fair bet because if international outperforms over the next 20 years you’re screwed unless you invest 100% international. So bet one way or the other. This portfolio will either get you the returns you need to retire in 20 years or it will do poorly. But in my opinion some money is the same as no money if you can’t retire on it, so it’s worth the gamble. At or near retirement if you have enough money built up, switch to 25% AVIV, 25% SCHD, 25% VOO, 10% SPMO, 10% FTEC, 5% XMMO. I’m sure 99% of people on here would disagree with me, but most of them have the luxury of taking a more conservative route and coming out on top no matter what happens because they either have more time or money to invest. Any other suggestion will work fine too if you have at least $2500 to invest every month.
Have you checked out FTEC? It tracks MSCI USA IMI Information Technology 25/50 Index which is more broad based technology than QQQ. You may see that as a positive out a negative depending on your perspective.
I sold half of my FXAIX and VTI once my account total went from 475k to 375k. I've bought back in since. I sold all of my QQQ and FTEC positions (46k) for a miniscule gain two days prior to the NASDAQ rising by 12% in one day. I was absolutely flabbergasted. I experienced FOMO and bought back in within 30 days, triggering a wash sale. Definitely regret selling, and I only sold half. I seriously set myself back.
Yeah the income funds are better if you come into a ton of money and want to collect dividends as extra income or if you’re retired and want to live off of dividends. But you have a lot of time for investing in more growth. Personally I am tech heavy with FTEC, SMH, and IGV.
Not exactly how volatility works but I see what you're saying. Don't forget the lows will be low! Maybe add some VGT or FTEC for higher tech exposure. Good luck!