By adopting this approach, you’ll have the time and emotional energy to navigate disruptions in the market and still remain invested to capitalize in a big way on all the hot new innovations Silicon Valley will continue to bring our way.
ONEQ is dominated by big-cap tech, of course. Its Top 10 holdings are a “Who’s Who” of tech leaders in mobile, the web, cloud computing, biotech, and e-commerce.
Indeed, we’re talking about Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT), and chip giant Intel Corp. (Nasdaq: INTC). It also includes biotech leader Gilead Sciences Inc.(Nasdaq: GILD), e-commerce king Amazon.com Inc (Nasdaq: AMZN), and social networking giant Facebook Inc. (Nasdaq: FB).
Though ONEQ is focused on technology, by definition, it also provides some nice diversification. Of the roughly 1,940 stocks this ETF holds, high tech accounts for 46% of the fund. Consumer cyclicals, financial services, and industrials make up another 25% of ONEQ’s holdings.
Here, we’re talking about companies like coffee giant Starbucks Corp. (Nasdaq: SBUX), mutual fund player T. Rowe Price Group Inc. (Nasdaq: TROW), and Peterbilt truck makerPACCAR Inc. (Nasdaq: PCAR).
You’ll also cash in on some exciting (and profitable) mid- and small-cap stocks without all the volatility that you’d have to deal with were you holding them as individual stocks. Those categories compose more than 17% of ONEQ.
And here you’ll find Strategic Tech Investor favorites like fabless chip firm NXP Semiconductors NV (Nasdaq: NXPI) and Russian Internet giant Yandex NV (Nasdaq: YNDX).
And I find it’s a good place to redeploy some of the gains you’ve reaped from your other investing windfalls.
The bottom line: An ETF like this can serve many purposes beyond the autopilot portion of your tech portfolio.
Whenever I discuss this type of tracking stock, I invariably get asked what proportion of a portfolio is the “right amount” to invest.
I used the $30/month example above, but it really depends on your time horizon, investment objectives, and risk profile. Aggressive investors and traders might put as little as 2% into something like ONEQ, while more conservative investors might devote as much as 15% to 20%.
I wouldn’t go much higher than that upper end unless you’re parking cash between investments and want to keep the money working for you. It’s a great investment for such long-term needs as retirement, saving for college for your kids, or saving for a house or retirement “cottage” a decade or more down the road.
Add it all up, and a tech investment that you buy now and never sell – like ONEQ – will establish a solid foundation for your portfolio.
Our mantra at STI is that “the road to wealth is paved by tech.” And with ONEQ, you can drive that road – on autopilot.
We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the flattening of the world continues to spawn new markets worth trillions of dollars; new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially ; and a technological revolution even in the most distant markets on the planet. And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.