XLK

2025SAG

I mainly trade technology stocks and other aggressive stocks that are usually added to the following ETFs sectors like: XLK, XLF, XLC, XLY, and XLI. In fy23 I increased my portfolio to 161%, in fy24 it was 96% and this year fy25 it was up 114%. My portfolio has definitely increased significantly over the years. However, the market looks like it wants to come down, and it feels like it’s a house of cards, so I got out and sold all my stocks around November 11. And I’m just going to wait until breadth, sentiment, volume and momentum is back in the market before I start trading again. Happy trading everyone!

Bluefin_in_Dresden

Purchased SEI this morning, adding to my AI related plays. Holding BW, APLD, SEI, and NVDA. Rate cuts imminent, holding diversified ETF’s and index funds including, SPY, XLK, QQQ, JEPQ. Bring on Kevin Hassett.

Emergency_Hawk_6947

Brk-b 70% in five years no dividends. XLK would have yielded much more in the same time span.

ruler_gurl

At this point M7 is like 35% of the sp500. That isn't exciting enough? I find it terrifying, but I'm admittedly considerably older, old enough to have watched Nasdaq shed 80% in the 00/01 crash. I do have about 20% in XLK which is the most volatile tech companies in the SP500 but even that is like 30 companies. What you haven't yet experienced is the disappearance of huge cap companies like Enron, WorldCom, Tyco, and the demolition of shareholder value in Cisco. It took 2 decades to come back to pre crash levels. If you want to have a little thrill position in mag7 only, it's not a problem, but throwing everything at it seems not only unduly risky, but also a bad habit to get started on. Diversification is a much better habit to get into.

No-Consequence-8768

58 here, Still dealing mainly the 50% Large Cap/Tech(XLK/SMG/MAGS/SPMO), 30% Managed Futures/Gold, 20% Mathematical Decaying LETFs/long(Tech2x/3x), \+40-50% LETF's Shorts(Tech/Uncorrelated Hedges/Gold etc..), When/IF I ever cover these Shorts(8-9yrs ago), got 7 digit Profits to Pay Uncle Sam. Hope my Uncle Sammy is President then!!!

EvolvingDior

VGT doesn't own enough MRVL to make a difference in it's price (maybe .06% up). But I'm surprised to see that XLK doesn't have any in its index. SOXX should rise about 0.6% on MRVL alone.

Prudent-Corgi3793

Two things can be true: - Black Friday sales are at a record - Retail sales growth is moribund, based on +3% y/y Black Friday sales. Sales are **supposed** to be at a record. Not only is CPI inflation generally positive (3% this year), but population growth means we should be exceeding this at minimum to show real growth at. Here are data for the last five years for consumer facing sector ETFs (XRT, XLY, and XLP) vs. the broader index (SPY) and tech stocks (XLK and XLC), which have actually driven returns. | Total Returns | Name | 2025 YTD | 2024 | 2023 | 2022 | 2021 | |:-|:-|:-|:-|:-|:-|:-| | XRT | SPDR S&P Retail ETF | 6.66% | 11.78% | 21.54% | -31.64% | 42.63% | | XLY | Consumer Discretionary Select Sector SPDR Fund | 6.09% | 26.51% | 39.64% | -36.27% | 27.93% | | XLP | Consumer Staples Select Sector SPDR Fund | 2.90% | 12.19% | -0.83% | -0.83% | 17.20% | | XLK | Technology Select Sector SPDR Fund | 23.67% | 21.63% | 56.02% | -27.73% | 34.74% | | XLC | Communication Services SPDR Fund | 20.25% | 34.70% | 52.81% | -37.63% | 15.96% | | SPY | SPDR S&P 500 ETF | 17.62% | 24.89% | 26.19% | -18.17% | 30.52% | I'm not sure what investor used to historical 11% returns from the S&P 500 and recent >20% returns can see US tech stocks absolutely ripping >20% again this year, developed international markets return ~30%, and emerging markets >30% can get excited about seeing low-single digit returns from consumer-facing stocks and say "hell yes, sign me up for this shit". And unlike health care, which was beaten down recently but recovered, this is entirely driven by fundamentals, not sentiment.

BusyWorkinPete

|ETF Ticker|Name|10-Year Annualized Return|Notes| |:-|:-|:-|:-| |SPY or VOO|SPDR S&P 500 ETF Trust / Vanguard S&P 500 ETF|\~12.1%|Tracks the S&P 500; provides broad U.S. large-cap exposure with low fees.| |QQQ|Invesco QQQ Trust|\~20.3%|Nasdaq-100 focused; heavy in tech giants like Apple and Microsoft.| |VUG|Vanguard Growth ETF|\~18%|Targets large-cap growth stocks; balanced for long-term appreciation.| |VGT|Vanguard Information Technology ETF|\~23.4%|Tech sector focus; includes leaders like Nvidia and Broadcom.| |SMH|VanEck Semiconductor ETF|\~28-31%|Semiconductor industry; driven by AI and chip demand (varies slightly by source).| |XLK|Technology Select Sector SPDR Fund|\~20-22%|U.S. tech leaders; consistent outperformance vs. broader market.| As long as your return is over 12% yearly, your money will double in 6 years. So 300k becomes 600k in 6 years, 1.2M in 12 years, 2.4M in 18 years, 4.8M in 24 years. Obviously these don't get these returns every year, but their long term averages are above 12%. In 25 years, you should be able to turn 300K into 2M, which should be enough to retire on.

Oldmanram1

Hi, Long time investor here, I can tell you that even if you research the SHI\* out of a stock , things can go to shit , markets turn , somebody puts a 200% tariff on a part needed for assembly . I agree with the gentleman that pointed out "Your exposure to speculative names is too high" I would have to agree. I don't do airlines either or cruise lines or Banks I try to have a base first , like some etf's of the S&P 500 , VOO, VOOG, etc. I have a good foundation of these , and have my little 5% or 10% speculation money, recently picked up SMCI , already has a 25% return. And for real speculation , IONQ , and SMR , A couple of other more targeted ETF's are MGK , basically the MGK, the [Vanguard Mega Cap Growth ETF](https://investor.vanguard.com/investment-products/etfs/profile/mgk), holds **66 stocks** as of September 30, 2025. Its holdings are concentrated in U.S. megacap growth stocks, with a significant portion in the technology sector, and its top holdings include NVIDIA, Apple, and Microsoft.  Or you can do more tech XLK is good for that .... Or the ETF MAGS the magnificent 7 , only those 7 stocks ... QQQ for tech as well , or if you are going to hold for a long time QQQM , lower fee's I also have individual stocks like Amazon, GOOGLE, APPLE, By using targeted ETF's I have been able to beat the S&P500 for the last 7 years or so.... So far this year , I have had returns of 38.27% YTD (mostly stocks) and another account (mostly ETF's) 15.76% YTD . Another one that's 16.51% YTD . The S&P500 as of today YTD 15.29 % Good Luck and Have a good day (:

95Daphne

The XLK being down 1.08% in pre due to NVDA/AMD complicates this. It's bat crap crazy, but I feel like Google has become a risk off stock within the Nasdaq complex more than anything. At some point, although it could be next year, the GPUs are ded narrative likely ends up hurting for everything within the Nasdaq.

frank_uptrendinsight

It may not appear this is an everything bubble. Without a doubt Tech (XLK) has been challenged in the last month as it's performance is lagging every other sector during that time period but Healthcare (XLV) has been strongest sector in the last month with about a 6.5% return. Now, that is a defensive sector so perhaps what we are seeing is investors run to safety in this market. With major indexes at 4 week lows we will have to see whether this is a rotation out of high P/E AI names into safety/value or if we are entering a correction or bear market.

vincentsigmafreeman

Buy XLK, own them all

Defiant-Pipe4468

I am an early-career professional that has started building an investment portfolio over the last year or so. My long term goal is to save for a house, but in the short term, I’m mainly focused on building a diversified portfolio that isn’t too dependent on one specific sector / area. My current portfolio is broken down as the following: 10% in GOOG (my only single company stock) 10.5% in QQQ 17% in XLK 36% in SPY 20% in SWVXX (Money Market fund that serves as my emergency fund) 6.5% in cash on hand I want to diversify a bit more into other geographies or other ETFs. While I have probably a bit more risk tolerance given I am still early in my career, I want my investment portfolio to be a “set it and forget it” exercise that I make regular contributions to. Does anyone have any advice / suggestions for good options to continue building? Thanks so much!

Dopamineagonist21

Yoooo you have stick 30k in an etf like SPY or XLK

dharmeshsb

No worries, I started seriously at 42. ETFs are great. Because I want more growth for time lost, I bought into $XLK on top of $SPY lookalikes while buying stocks as well.

Synchwave1

I’ve done the same, but through sector etf’s XLK,XLE,PRNT,XLP. As long as you’ve put thought into it and rebalance regularly enough you’ll be in good shape

holdmysugar

Same here. I actually hold VOO, XLK, and bitcoin.

TestingLifeThrow1z

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

TestingLifeThrow1z

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

CuteHand

Damn XLK ripping it. What happened here? How much did you also lose in PTON?

RayU_AZ

A easier and simple one. I wouldn't invest in bonds under 70 years old age. 1. VONG-80% 1000 Large Cap growth over any SP500 index 2. XLK-5% 3. SOXX-5% 4. VWO-5% 5. VXUS-5%

SlimDaShaka

XLK is an option also

noahdvs

Changing sector weights to underweight sectors you think are more volatile probably won't be as helpful as you think. XLK (S&P 500 Technology) and XLC (S&P 500 Communications) have better 3 year alpha and Sharpe ratio than all the other S&P 500 sectors even though tech and communications are supposed to be riskier. XLP (S&P 500 Consumer Staples/Defensive) has worse returns and risk adjusted returns than IUSB (total USD bond market) over the past 3 years. Healthcare is another sector that's supposed to be safer, but the performance has been abysmal this year because of UnitedHealth. You thought DIA would be safer because it's supposed to be more spread across sectors, but UnitedHealth has noticeably dragged it down. DIA's limited holdings make it somewhat riskier than other index funds since it depends more on individual stocks. the DJIA is also weighted by price, which is a pretty nonsensical way to weight an index in the first place. If BRK-A was in DIA, it would be 99% of the portfolio. Ultimately, choosing to overweight a "safer" sector doesn't necessarily mean the value of your investment is safer, especially when adjusted for inflation. This also applies to asset classes, but at least a rate cutting cycle is beneficial for bond prices. Even foreign bonds are somewhat affected by rates in the US because foreign bonds are compared with US bonds. I used 3 year measurements because that's what my brokerage's app shows. Over the past 5 years, XLP has clearly outperformed IUSB.

Mr_UBC_Geek

This stuff only works out great for short term bull markets. ARTY would be in the red if you brought at the peak of early 2021. ARKK would be red over 5 years and I'm red on my 5 year ARKG hold. XLK is great, SMH is good for exposure but VONG isn't giving the growth you'd want with the mega caps dominating. Future can't be determined, but most would do VOO over VONG.

RayU_AZ

The simple sucessful ETF portfolio I had used in the past is below. It's over- weight in tech, but thats where the returns have been the last couple of years. You can add other EFTs for other sectors to target, Xbi-biotech. I use the VOO/VEA combination before for non-US stocks and emerging markets. I like having a Cathy Wood's active managed ARK fund to boost returns, ARKK, ARKG or others. 1. VONG 80% 2. SOXX or SMH 5% 3. XLK %5 4. ARTY 5% 5. ARKK 5% I like VONG, 1000 Large cap growth over the plain VOO, S&P-500. I'm retired now with more time on my hands and have migrated over from hold & forget ETFs to pure stocks. Good luck.

blorg

I think there's something funky about the Yahoo Finance quote. Their [own site has it as +6.18%](https://imgur.com/a/dVcYNJ5) and that's also what [MorningStar](https://global.morningstar.com/en-nd/investments/funds/F00000XLK4/chart) quotes. The other 1% could be the dividends, I did pick distributing funds but I think possibly JustETF still rolls the dividends into the chart on those. There's also a relatively high (0.5%) fee and could be slight differences in the index followed, it's close enough though. https://www.sparinvest.dk/fondsoversigt/dk0060747822/

bornofsupernovae

XLK is still green. This AI rally has room to run still.

Gainztrader235

Here’s what I do and most institutions. One effective way to protect a portfolio from downside risk is through the use of long-dated put options a strategy commonly employed by institutional investors. By purchasing puts on broad market ETFs like SPY (S&P 500), QQQ (Nasdaq-100), or even inverse ETFs such as SDOW (3x inverse Dow Jones), investors can establish a form of insurance against major drawdowns. These positions increase in value when the underlying market declines, offsetting losses in the long equity side of the portfolio. How It Works - A put option gives the holder the right—but not the obligation—to sell the underlying asset at a set price (the strike) before a specific expiration date. - Long-dated puts (LEAPS, or “Long-Term Equity Anticipation Securities”) can extend 6–24 months out, allowing more sustained protection without constant rolling. Key Considerations - Theta Decay: Option value erodes over time due to theta, especially as expiration approaches. The longer-dated the option, the slower this decay, but it still represents a cost of holding insurance. - Delta Exposure: The value of a put increases as the underlying price drops, but decreases if the market moves higher—so gains in your core portfolio typically offset these paper losses. - Volatility Impact: Rising volatility (VIX) during market stress boosts put premiums, enhancing hedge effectiveness. Strategic Implementation - Index Hedges: Buying SPY or QQQ puts protects against systemic downturns across sectors. - Sector-Specific Hedges: Investors may choose ETFs like XLE (energy), XLK (tech), or XLF (financials) depending on exposure concentration. - Direct Hedges: Buying puts on individual holdings—such as AAPL or NVDA—can protect specific core positions without over-hedging the entire portfolio. - Dynamic Adjustment: Some investors adjust their hedge ratio based on volatility levels or key technical levels (e.g., 200-day moving average breaks). Example An investor with a $500,000 equity portfolio might buy SPY $450 puts expiring in June 2026. If markets drop 15%, those puts could gain enough value to offset 20–40% of the loss, depending on strike and timing.

LargeSinkholesInNYC

Just buy the XLK. You don't know what you're doing.

LargeSinkholesInNYC

Sell it now and buy the XLK.

LargeSinkholesInNYC

Just buy the XLK if you're extremely bad at picking stocks.

No-Consequence-8768

QQQM only out for 5 yrs. Yes XLK, SCHG, SMH, FNGS(etn), FTEC and MAGS will easily... all higher TR from QQQM inception.

gmehra

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

LargeSinkholesInNYC

Buy SPMO and XLK if you have no idea what you're doing.

LastFirst22

Watching XLK closely right now. It wouldn’t surprise me to see it test the lower trendline today. Could see a bounce higher tomorrow and early next week, followed by more volatility. [https://share.trendspider.com/chart/XLK/6433zieliq](https://share.trendspider.com/chart/XLK/6433zieliq)

peterinjapan

Swing trading pretty well in my IRA, stating the course with VOO / XLK / SCHG / a few others in my main account

Remarkable-Drive3503

Oh our lord and savior, SPY be thy name. Raise your tides & lift all my heavy boats from the depths of despair. How dead some of ye money hath been. Lift the curse of the dividend dead money & vanquish the likes of KMI, PFE, etc from thy portfolio. Forgive me & embrace me once again into your bosom. Never again will I stray from the path of YOLO 0DTE and spurn the diciples of XLK.

Striking-Block5985

That's a very risky thing to do, because it's likely the return to mean (caused by a fade) will cause the CSP to go up in value and even go ITM (if the stock gioes into a bearish trend, so one must be prepared to take delivery of stock when happens. it esp dangerous whne dealing with meme stokcs , though XLK is not one of those disasters

FranklinUriahFrisbee

There are a couple of possibilities. The S&P is up about 32% since April so some are thinking this might be a buy the rumor sell the news situation. If that happens, tech stocks will probably move the most so buy QQQ or XLK calls. QQQ or XLK calls would also be the bet to make if you were thinking that we might not get a cut at all. Finally, if you think the Fed might do a 1/2 point cut, buy puts in the defensive sectors - Consumer staples, healthcare, and utilities along with precious [metals.](http://metals.buy)

jmills3financial

By no means does any of this constitute recommendation, I see a lot of people investing in QQQ which is the NASDAQ 100. I see a lot of people who are investing in SMH, which is for semiconductors which goes right back into the AI side of things , XLK is pretty solid because that’s focused on technology within the S&Plike

SteevieJanowski

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.

jordynstrips

This is going to show my ignorance (as I mentioned I don’t do a lot of managing my own money), but would you please explain the rolling for credit a little more? Is that always an option? That would be my goal for rolling, that the new option expiration would give me time for XLK to finish OTM, or at least at a price that I can make a higher profit on. When I was playing around in Fidelity it seemed like most of the options for rolling up were going to cost me a good chunk of money. Credit sounds nice. Haha

jordynstrips

Yes, the call was sold at the end of April. And my non-retirement investments are almost completely XLK. It’s not really that it’s wiping out my gains against other stocks, there just isn’t anything else to gain in. I’d love more insight into what could be done better. As I mentioned, my dad manages most of my money (and has done mostly a very good job) but I’m trying to learn and optimize.

Substantial_Team6751

Rolling just means buying back what you have at a loss and selling another call. Looking at the option chain, you can roll to the same strike for Oct 17 for a tiny credit. That gives you another month to see what happens. You are over-trading if one trade is wiping out all your gains for months. You realize that when XLK passed 230, those gains weren't yours but you actually made full profit on the covered call trade? XLK passed 230 in May. Are you trading covered calls like 6+ month out?

sharpetwo

This is the classic covered call trap: it feels like income until the underlying rips, and suddenly you are short a ton of upside. Rolling here is basically paying rent to stay in the house you already own. You are buying back a deeply ITM call (expensive) and re-selling further out and often cheaper than you wish. Therefore you end up lock in the loss on the short call and hope the new one earns it back. You are basically short the stock, while owning it or trying to get out of the contract you knowingly sign with the market. Fine. That can work, but in your case XLK is $40 above strike, you are not rolling, you are digging. Your choices are really just three: 1/ Take assignment: you sell at 230, pocket your premium, and move on. Painful, but clean. 2/ Buy back the call: expensive, but it frees your shares. You then decide if you still want XLK exposure at $270. Who knows, it may get to 300+ by the end of the year and all of that will just be a bad dream, or an expensive lesson. 3/ Do nothing: accept you capped your gains lose your shares, and take the lesson. Rolling here is not fixing anything, it is just kicking the can at a worse price. Covered calls are best written when vol is fat and you are okay losing the shares. If you are not okay, then you should not be writing them. For what it is worth, XLK has been on a strong run, implied vol is not extreme, and the VRP has thinned. This was never the time to be selling calls hand over fist at the first place, particularly in short expiries. Good luck.

LargeSinkholesInNYC

XLK is the best.

EvictionSpecialist

Lend it to me, I'll give you 12k a year... Guaranteed Otherwise throw it down on VOO/XLK 50%/50%

EvolvingDior

I am. Also look at XLK if you trade options. No mid/small cap exposure like VGT, but a more liquid options market.

EvolvingDior

GLD and XLK beats either GLD or VOO.

W-Sensei

VTI/VOO, XLK (tech), SGOV, EZBC/FETH

Zerkron

My portfolio is 100% tech and I have no regrets. You can choose the NPC way of going all in VOO, or you can actually make more money just as safe with SMH, XLK, etc. Try individual stocks too, DYOR.

EvolvingDior

XLK

sharpetwo

Everyone wants the perfect csp ticker but the truth is you are not picking stocks: you are picking volatility regimes. When you do them, you basically sell crash risk insurance. You want names where: \- IV is rich relative to realized (variance risk premium exists). \- Indeed, liquidity is deep enough to get fair fills. \- Fundamentals are stable enough that a 30% gap does not wipe you. That usually points less to single names and more to index ETFs (SPY, QQQ, IWM) or liquid sector ETFs (XLF, XLK, XLE). You get diversification, tighter spreads, and you are not betting your account on whether some CEO go have a little fun with his head of HR. If you insist on single stocks do it data-driven: screen for names where put skew is elevated and the market is paying up for downside insurance. Starting by looking at how expensive IV versus RV is always a great place to start. If you can't do it in a data driven manner, you need to sell CSPs when the market is paranoid, not just because a stock sits on a watchlist. But if the market is paranoid, the risk is also probably there for a reason.... The edge in csp is not “finding the magic ticker.” It is in position sizing, premium vs risk.Then comes discipline on rolls/exits. But without that, the ticker list does not save you. Good luck.

Dstein99

That depends on what you consider high risk. General advice is something like VOO (the S&P 500), it’s the 500 largest companies in the US. Some people will consider it high risk because it’s no bonds and all US companies, but this is spread out across 500 large reliable companies that it’s generally sound advice. If you want higher risk you can try something like XLK (Technology sector etf). This is more concentrated into an area and will generally move up or down more than the market as a whole. Third would be individual companies. Just know that high risk does not necessarily mean higher return. There are a ton of stocks out there that people will pitch you in the comments that have high risk and a very low probability of return.

old_Spivey

Halt die Klappe! Felix is a brilliant guy with a fantastic personality. His ideas are very sound and can lead to substantial gains. As another poster stated above, he does find good investments before some of them really take off. The wins far exceed the losses and if you set stop losses, you will continue to gain in a bull market. If it is a volatile stock you can't set the loss at the buy point or you'll likely get kicked out of your trade. You have to take some risk, usually 5-7%. If you lose that 5-7%, you chalk it up to the cost of business and let it be offset by your other trades of 10-20%. Diversification is also key, although paying attention to the moving sectors will help a lot.( I personally watch the XL funds: XLE, XLF, XLV, XLK etc) I have not paid for his GOAT Academy because I don't have the funds for it now. But I do enjoy his erudite humor, his pets and the approach he takes. Like others who have stated before me: if you don't like it, don't watch. What miserable wretch expends their energy trying to find fault with someone they supposedly don't care about?

1973Hog

Invest some time and a LITTLE money into education. Watch out for all the hucksters out there trying to sell you their "System". If you don't want to actively trade, look at Dollar Cost Averaging. We have out 35 YO unmarried son in SPLG/VOO, VGT/XLK and GLD. You could go with VTI, but I am not convinced that International investments will outperform the US ... at least that is my experience since the mid-90s. Of course, the markets could most definitely not perform as well over the next 10 years as they have the last 10. Historically, we have had long stretches (months to years) where the markets were declining, but employing a Dollar Cost Averaging approach would have worked well IF you had enough time to regularly add money to a Broad based ETF and did not try to Time your investments. If inflation hits hard (as the high debt levels lead me to believe), then owning assets that appreciate like stocks, real estate, etc are the way to go. Best of luck in your journey. Do NOT give up. All successful traders and investors have had their failures and mistakes. You are not alone.

bornofsupernovae

XLK is up 13%YTD XLP is up 1%YTD The tech trade is still on.

Zwonder74

mid october puts on QQQ or XLK

pandadogunited

Use an actual tech fund like VGT or XLK. QQQ is only 60-70% tech, and it’s fully possible for that percentage to fall. They also have lower fees, even if the difference is marginal.

EvolvingDior

The question is "underperform what and by which metrics?" The strategy for 50/50 XLK/GLD outperforms holding VOO or SPY by all metrics I use over multiple overlapping timeframes: total return, Sharpe ratio, and Sortino ratio. Will it underperform 100% XLK? Sure, over certain timeframes. But the drawdowns are crazy, resulting in underperforming for certain timeframes. The Sharpe and Sortino ratios are worse. Give [https://www.portfoliovisualizer.com/backtest-portfolio](https://www.portfoliovisualizer.com/backtest-portfolio) a try. It's the best tool I have found for getting a feel for how rebalancing uncorrelated assets works. Their portfolio optimization tool and monte carlo simulation tools are pretty cool to play with as well.

EvolvingDior

So, yeah. True. But I started with ETHE and it doesn't really have history. But do the backtest yourself on XLK/GLD. It has even better results for 10 years. 3.5% better than SPY. The problem with backtesting is that it cannot account for the addition of new asset classes or changes in domestic or international law which permanently alter asset class performance.

EvolvingDior

Nothing juices a portfolio like holding gold and rebalancing frequently (for example when any allocation is off by >3%). The Sortino ratio for a 50/50 ETHE/GLD since 2020 is 5.7. Hell, since 2021, arguably the worst time to have bought Etherium, it's 1.28 with a 50% annualized return. SPY is 1.09 at 13.7%. The Sortino ratio for 50/50 XLK/GLD since 2021 is 1.61, beating SPY's annualized return by 2% with a 4% lower max drawdown.

sharpetwo

You’re not kidding yourself and congrats for finding out about the wheel’s dirty little secret: the trade looks great when you’re selling CSPs or slightly OTM calls, but once your CC goes deep ITM, you’ve basically morphed into a stockholder who’s leasing away upside for pennies. That’s why it feels like “even Steven.” Right now you’ve got two paths, and it comes down to how you want to play expectancy: – Keep rolling: sure, you’re still pulling in yield, and you’ve got a fat buffer under you. But the juice shrinks the deeper ITM you get. Eventually the call is just synthetic stock plus a loan you’re writing for not much premium. That’s a lot of effort for very little edge. – Take the assignment and reset: this is often the cleaner play. You lock in all those gains, free yourself from the grind of trying to roll thin premiums, and redeploy into fresh cycles where VRP actually pays you. Rolling isn’t wrong, but don’t confuse “grinding 8% annualized” with “beating the market.” You’re basically long XLK, capped, and being drip-fed yield. Nothing wrong with that in a Roth if income was the whole plan. But if the point was to juice returns, then freeing capital and starting again probably gives you more bang for the buck. The real question isn’t whether you “lose” by letting it assign, it’s whether the capital tied up in that ITM cc could be working harder elsewhere, or the timeless opportunity cost dilemma. Good luck.

LargeSinkholesInNYC

I tend to just buy it after when there's a correction of 10-15% when the stock is at an all-time high. That's what I did with AMZN and I got like a 10% profit from it, which I reinvested into XLK.

Recent_Register_2952

Honestly probably XLK

No-Consequence-8768

Unfamiliar with some of those but here. XLK is a growth fund for me. Yet SPMO I think is great during both BULL & Bear markets. I type this and see you can't upload a Chart. PM if like to see TR of all.

FlounderComplete3644

Chips are at the core of AI. You got to ask yourself: Is AI going to continue growing or is it going to die on the vine? We might be in an AI bubble right now and see a big short term correction. Long term there is no way the AI Genie is going back in the bottle. Just my opinion. BTW: A similar alternative to FSELX is the ETF —>>. SMH. I own both as well as XLK. As mentioned it might be foolish to go all in on FSELX but it might be wise to have a healthy position.

SnS2500

Given what you said, I'd suggest coupling VOO with IGM (as opposed to XLK and VGT). IGM is broader tech than XLK and unlike VGT (and XLK) it holds not-technically-tech META, AMZN, NFLX and SHOP. Having some SMH on top of that to be heavier in semis is fine too. XLF is a good choice to be heavier in financials. Also check out EUFN as something to consider holding in the current environment.

vodkapickl85

Just buying boring ETF's XLK, snagging share #67 If you DCA, being at ATH's doesn't really matter.

Mundane-String180

Honestly, this is fairly complicated and you shouldn’t take this advice as absolute. I’d start by holding less tech for example, remove QQQM since SCHG and VOO do similar things, and all three together add only small benefits. For most investors, VOO or VTI + international like VXUS is highly recommended by me and most experts as the two main ETFs to own. After that, the rest of your ETFs are optional and it’s your choice to own more. If you want technology, something broadly diversified in technology like XLK or VGT works well. If you want small-cap value, AVUV or VBR are probably the best. I personally like small-cap value, but if you prefer something else, choose a good ETF for that sector or factor and buy some. However, in most cases, VTI/VOO + VXUS should be your main ETFs in most scenarios at least.

TheInkDon1

Yep, the strike that's at 30-delta (or less) \~30 days out. I don't trade "extremely volatile" stocks, and maybe you shouldn't either. At least not for the PMCC. Because really, most of the gains are to be made in the appreciation of the LEAPS Call (think doubling or more in a year). The CCs are just gravy. And if you don't know: ***a Call holder won't exercise if there's ANY extrinsic value left in the option.*** (Barring "dividend capture," you can look that up.) Because to do so would be to forfeit that extrinsic value. So if you're selling 30DTE, you have plenty of time to react to a big move in the underlying. Pick a volatile ticker and go look at a somewhat ITM Call about 2 weeks out; see how much extrinsic value it has? The Call holder/owner would forfeit that if they exercised. Anyway, you don't high IV to make money with the PMCC. Think boring things like XLK, XLU, DUK, EXC, MSFT.

sirporter

Here’s some great advice: if you have to ask strangers on the internet, buy VTI or XLK or SCHG or whatever

TheInkDon1

I second u/DennyDalton's recommendation of buying high-delta LEAPS Calls on companies or ETFs you like. Do you think NVDA will be higher in 2 or 3 years? TSM? SOFI? WMT? How about ETFs like XLK or IGV? Maybe gold via IAU or GLD? If you do, then buy a Call at 80-delta or higher, and a year or more out. 2 years is better, and 3y better still if those are offered. You'd still be investing in, say, NVDA, but with a *stock substitute*. A 2.3-year out 80-delta NVDA Call (the Dec'27 145C at 69.95 Midpoint) would give you 2.1x leverage to Nvidia. So if you like the last 6 months' 40% gain, you'll like it even more when your long Call goes up 84%. Do you sell Covered Calls now? You can sell a Call against a Call you own. It's a Diagonal Call Spread, also called the Poor Man's Covered Call when the long leg is at least a year out. Sell Calls at about 30-delta, about 30 days out. Buy to close when they've lost half their value. Or roll up and out if challenged. PMCCs are all I do now, using the leverage of LEAPS Calls to amplify moves of stocks & ETFs. The CCs are gravy on top. Have fun!

LaPulgaAtomica87

Why VGT over XLK?

pandadogunited

QQQ has shitty selection criteria. What exchange a company chooses to list on is immaterial, and a frankly stupid way of choosing what companies to invest in. If you want tech, invest in an actual tech fund like VGT or XLK. If you want growth, invest in an actual growth fund like VUG. If you want mega caps, invest in a mega cap fund like MGC.

peterinjapan

I wonder how old you are? I am 57 years old, but don’t know any bonds. A third of my portfolio is managed by me, presumably paying attention to trends that are important so I’m in gross stocks like SCHG and momentum like MTUM/SPMO. I also swing trade in my IRA. The rest of my portfolio is managed by a smart manager who keeps me in ETFs like SPYG, VOO, XLK and XLC.

jonats456

ETFs are serving me well (VOO/VTI + XLK, VUG/QQQ) as my core ---with a mixture of mega tech stocks + WMT, COST. Built these overtime using DCA, then rebalanced when needed, and buying even more when markets tanks. Makes me sleep well at night.

erov

Some of my biggest returns were buying XLK in April.. its still had great returns.

ruler_gurl

I'm in a similar position, short 220 CCs on XLK. I've already rolled half a dozen times. I've decided that so long as I can keep rolling for approximately 10% apr, I'm better off continuing this in the expectation that things correct back down again. Maybe I can close it cheap if it does The alternative is letting it assign, and if i do that there is no way I'll be able to sell 220 CS puts for more than a few cents. As the price has increased farther and farther from my strike it's gotten harder and harder to roll for a decent premium though. I was getting 2-3 points per month, but now I'm having difficulty getting 1.5 points per month. It's still better than what I'd get in money market, but not by much. What I refuse to do is to chase the underlying.

tropicsGold

That looks solid. There is a lot of tech, it’s actually a fairly aggressive build, I don’t know why they are saying it is boring. Esp with a good chunk of Bitcoin. Very similar to me, so I guess I am biased. I just started to play with TECL, a leveraged XLK (x3). Very dangerous, but potentially quite lucrative. And I like VOO since it is very inexpensive, very low management fees.

C2theC

XLK

ContextZealousideal

Respectfully disagree. Monetary policy is nothing like what we had with Alam Greenspan. Mag-7 stocks are not grossly overvalued and it’s debatable what “fair” value is. Price to cash flow, PEG ratios and other metrics are reasonable. If your thesis is that a 2000 like tech crash is coming, you ought to short the XLK and ride off into the sunset. Let us know how that works out for you.

Krishna_Trading_

This is a sharp take, and the chart plus fundamentals fully support it. You're ahead of the curve, and most retail (and even some institutional desks) are still locked into a zero-sum mindset where AMD must “beat” Nvidia outright to be worth a rerating. That’s not how disruptive parallel adoption works. Sales growth: AMD is growing at 20%+ YoY, and EPS next year is projected at 5.92, up from 1.36. That’s a 335% jump in earnings power, the market will not keep pricing that at a 30x forward PE for long. Gross margin of 45.15% and a debt/equity of just 0.08 shows strong operating leverage and capital efficiency, especially in contrast to bloated peers. ROE of 3.90% and ROA of 2.30% look low now, but if even half your thesis plays out, those metrics will scale aggressively by 2026 as open-source traction compounds. Held by VTI, QQQ, SPY, XLK, SMH, SOXX, VGT, institutional exposure is deep, and this sets the stage for rotation when fund managers reweight AI plays post-Nvidia euphoria. You’re looking at a near-parabolic channel breakout, and 50M avg daily volume suggests real demand. Even with today's red candle, AMD is up +29% this month, +50% this quarter, and +105% YTD. RSI is hot at 76.92, but that’s typical before big repricings. Look at MSFT in early 2023 for the same setup before it launched. From The Innovator’s Dilemma to Crossing the Chasm, we know disruption rarely starts with a knockout punch. It starts where incumbents aren’t looking, open-source flexibility, sovereign autonomy, cost-sensitive AI stacks. That’s AMD’s wedge. And it’s not just theoretical: Meta, MSFT, and Oracle testing AMD accelerators in their AI workflows is a big deal. These aren’t just dev kit trials, they’re vendor hedging at scale. Geopolitical de-risking is not a sideshow. European and Middle Eastern governments don’t want to build national AI capacity on Nvidia’s closed ecosystem. Startups need modularity. With AMD offering open toolchains like ROCm and growing PyTorch integration, there’s a bottom-up movement building, same way Linux eventually dethroned Unix. Investors still pricing AMD like it’s a sidekick in the AI race are missing the macro and micro drivers. It doesn’t need to win headlines. It’s winning adoption velocity in exactly the segments that create structural longevity. This isn't a trade on hype. It’s a re-rating play on silent architecture-level disruption. Well said and well spotted.

MarkM338985

IWR, XLK, SPY, 1/3 each, not very diversified but possible reasonable gains.

holdmysugar

XLK

kindofblue603

Take a lesson from the stock market in the year 2000 (peak of the internet stock bubble) and what did well from 2000-2003 during the tech crash. Rotation into more value-based stocks in Finance, Energy, Utilities, and Health Care. Check out the holding lists from value-tilted ETFs like MOAT and SPGP to get some ideas. During a rotation to value, you can never go wrong with BRKB-its already on the upswing. If you want less risk than individual stocks then try the sector ETFs of XLF, XLE, XLU, and XLV. Looking at the ratio percent change of XLK(technology sector) vs XLV(health care sector) over a period of time can give you an idea of how much rotation is going on into value. This past week (7/26) the ratio is over 10.

Odd_Onion_1591

Just start selling weekly covered calls that are far enough but yield good dollar 💵 then, when get assigned, buy XLK or VOO

MrG

From a research firm: > The markets have been grinding higher over the past couple of weeks as investors are becoming increasingly optimistic on the global economic outlook. We have seen hotter-than-expected US inflation prints and other market headlines that normally would have triggered a sharp sell off, but we are currently seeing a relentless bid for stocks. This resilience likely reflects underlying demand from investors who stepped away during the April pullback, moved into cash or bonds, or rotated into international equities. Now, many are gradually moving back into US stocks, contributing to the persistent upside pressure. Earnings season is upon us, and in this market update, we want to talk about early signs of froth in the market, and some bellwethers that we are watching. > Early Signs of Froth? The FOMO Trade >In recent weeks, we have been noticing some early signs of froth in the markets, particularly through a shift in market tone driven by a resurgence in thematic investing. This is loosely defined by an increase in investor risk appetite, as themes like drones and defense tech, crypto, space exploration, AI data center infrastructure, and quantum computing are gaining strong momentum. This is not to say that the momentum can’t continue, or that there aren’t valid reasons behind the moves, but clearly, animal spirits are returning. Historically, we have noticed that these types of environments often precede a “melt-up” phase in the markets, driven by a consistent bid in risk assets as cash flees from bonds, high-interest savings vehicles, dividend stocks, and defensives like consumer staples names. > What We Are Watching > Melt-ups, periods of narrative-driven investing, and a risk on appetite are generally periods where investors can see large unrealized profits, and this is where we like to remind investors to watch position sizing. As large-cap, blue chip names may rise steadily, higher-growth and more speculative stocks can significantly outpace, leading to overconcentration in riskier exposures. This is where it becomes vital to keep an eye on portfolio weightings, and how much of one’s portfolio is ‘out the risk curve’. While we do see some signs of early froth, we do believe that it is still early, and we feel there is more upside in the markets from here. Although, the environments where narrative-driven investing and risk appetite increase are historically associated with late-cycle behaviour. If we are in the early parts of a melt-up, there are a few bellwethers that we are watching to help indicate how far along we are in the cycle. > 1. Risk-On / Risk Off: Tech vs. Utilities (XLK/XLU) > In this chart, we are looking at the relative performance of the US tech sector (XLK) to the US utilities sector (XLU). The tech sector is well-known for its high-growth properties, whereas utilities are known to be more stable and defensive. We can see a few noteworthy items in the chart, the first is that the relative performance (top pane) has areas of support where this marked a bottom in the broader markets. We also note that the broader markets, the S&P 500, traditionally has not made a cycle top unless the relative performance of tech to utilities has made a new high. So far, the tech/utilities relative performance has not made a new high since early 2024. This helps indicate to us that there is likely still upside potential in the broader markets. >2. US Regional Banks > The performance of US regional banks (KRE) is often a telling barometer of risk-on sentiment in the financial markets. When regional banks make new highs, it typically reflects broad investor confidence in the real economy, credit conditions, and liquidity. Regional banks are closely tied to credit cycles, and strong performance indicates that credit is flowing. Historically, we have seen cycle tops take place where the US Regional banks have made a new all-time high. So far, we have yet to see this happen. The recent trend for regional banks is up and to the right, but they have not yet made new highs. This is another indicator to us that risk appetite can continue to improve. >3. US Small-Caps >The Russell 2000 (IWM) tracks 2000 US small-cap stocks, and this index is one of the most sensitive gauges of investor risk appetite. When small caps outperform or break to new highs, it typically signals broad-based optimism about growth, earnings, and liquidity. So far, the small-cap index has not made a new high, and again, this gives us an indication that risk appetite has room to increase. >Overall, it is difficult to discern if we truly will enter a melt-up period, but we believe we are seeing early signs of a melt-up market, and these periods tend to be associated with lots of opportunities in the markets, but also reason for caution and watching individual portfolio weightings. We believe this is where it becomes increasingly important to ‘pick spots’ in the market to allocate capital to, and to watch for any sector or individual stock overconcentration’s in a portfolio. The markets are a function of risk and reward, fear and greed, and this is where it becomes critical to be hyper-diligent in portfolio composition. There is always a bull market somewhere, and we feel that there will be lots of opportunities ahead.

Wowmuchrya

I love how all these clown banks like GS are telling people to short XLK/Tesla/Nvidia and they're out there buying every micro dip with everything they have. Believe everything everyone says!! Retail big dumb haha!!!

foolproofphilosophy

I’ve been VOO/XLK 80/20 for a while and it’s still rocking. XLK is different but still tech. Yes there’s some volatility but I’m a ways from retirement.

jacknhut2

Have 3-6 months of emergency fund in a high yield savings or treasuries. Then put the rest in an index fund with growth as focus, not value. You are young, you have a long horizon, growth etf such as SCHG, QQQM, XLK, VGT will outperform value etf 100% in the long run. Even if you invest at the worst possible time ie the dot com bubble 2001 or the peak of the financial crisis 2008, you will still outperform any value etf today if you put your $$$ into any of the growth index fund mentioned.

W-Sensei

50k index fund (VOO or VTI) 20k tech fund (XLK) 10k crypto 20k fuck around to get to know investing more Any new money, feed the two funds which should be left for decades while also taking risks (you're young) with some fuck around play money as you get to know investing more.

Equivalent-Coat-7605

That stock moves way too violently on news. So VOO and XLK are my only exposure to it.

Cryogenx37

You still got half a milly, just buy ATM LEAPs of $SPY and $XLK and don’t worry about it

Wretchfromnc

just buy a tech ETF and let the investment firms find the best companies to put in the fund. XLK, VGT are great tech ETFs.

zigtrade

Downturn? You mean the one where XLK is sitting at all time highs!?!

Vashe00

I have puts on XLK that I hope will be printing

peterinjapan

The guy who manages most of my money has me in solid things like VOO, XLK, SCHG. I swing through my IRA. My current top holdings are EWP (Spain), SPMO (amazing momentum etf), EUFN, VIRTUAL and COF.

Coffeewin

Closed out all AMZN and NFLX PCs for massive gains. Entering more AAPL shorts with ITM CCS. QQQ making new highs but one of the largest components in XLK is struggling to stay afloat above $200

EvictionSpecialist

10% F around budget. 90% VOO /VTI/XLK