Author Topic: Create ETF for tech giants only?  (Read 2116 times)

Fuzz

  • Bristles
  • ***
  • Posts: 317
Create ETF for tech giants only?
« on: February 17, 2016, 06:13:51 PM »
Hi all:

All of my money is in a mix of vanguard index funds. I am thinking about allocating a small percentage of my net worth to a handful of tech giants and want to see if anyone knows of a way to create your own ETF, rather than messing around with owning individual stocks.

Specifically, I'd like an ETF that just holds Google, Amazon, FB, Apple and MSFT. That's it. I don't see those 5 going anywhere.

Yeah, I know it's stock picking, and I'm better off with an index fund. But it's a small percentage of my total investments, and I'd like to do it as an experiment.

Is there an ETF with just these stocks already?

capitalninja

  • Stubble
  • **
  • Posts: 102
  • Know what the other guy is making on the deal...
    • Entrepreneur, Investor, Life Advice
Re: Create ETF for tech giants only?
« Reply #1 on: February 17, 2016, 07:37:58 PM »
An ETF only containing those 5 stocks? No. You could simply roll your own by buying each of the 5 individually. If you want equal weighting, then 20% of "small percentage" of your investment dollars into each.

So if you have say 20k to use for this experiment, it'd be 4k into each holding. There'd really be no point to paying the fees associated with an ETF that only hold 5 securities. Just buy them outright yourself.

Heckler

  • Handlebar Stache
  • *****
  • Posts: 1346
Re: Create ETF for tech giants only?
« Reply #2 on: February 17, 2016, 10:02:48 PM »
Why not Myspace or Yahoo?

less4success

  • Bristles
  • ***
  • Posts: 285
  • Location: Just moved
Re: Create ETF for tech giants only?
« Reply #3 on: February 17, 2016, 10:58:20 PM »
Maybe look into Motif.

AdrianC

  • Pencil Stache
  • ****
  • Posts: 948
  • Location: Cincinnati
Re: Create ETF for tech giants only?
« Reply #4 on: February 18, 2016, 07:36:30 AM »
There are tech ETFs, such as VGT.

Amazon, being primarily a low-margin retailer and all, is in the Consumer Discretionary ETF, VCR.

There's no point to an ETF with just a few stocks. Just buy them yourself and enjoy the tax loss harvesting... ;-)

MustacheAndaHalf

  • Handlebar Stache
  • *****
  • Posts: 1688
Re: Create ETF for tech giants only?
« Reply #5 on: February 18, 2016, 08:04:32 PM »
Vanguard Information Technology ETF (VGT) has 40% of what you want in it's top 4 holdings:
1 Apple Inc.   13.5%
2 Alphabet Inc.(aka "Google")   11.0%
3 Microsoft Corp.   10.2%
4 Facebook Inc.   5.9%
An advantage of getting that 40% is the $0 commission to buy and sell.
(Amazon is the #1 holding of Vanguard Consumer Discretionary ETF, which is a different sector)

I haven't tried Motif but have been curious about it.  A motif is a basket of 1-30 stocks you set up.  You then pay $9.95 to buy that basket of stocks.  I assume they pick the timing, so they could make something off market movements or switching stocks among a pool of some kind.  But I doubt you'll pay 40 cents to buy 25 stocks anywhere else, so that might be a worthwhile trade off.

Scandium

  • Handlebar Stache
  • *****
  • Posts: 2198
  • Location: EastCoast
Re: Create ETF for tech giants only?
« Reply #6 on: February 19, 2016, 07:46:51 AM »
You can buy 4 of them (except googl) commission free at loyal 3. Not sure I think it's worth it over paying $8 once for each though. Then you'd have the stocks with a real broker and a better interface,tracking etc.

Four of those were the largest gainers last year I think. Sounds like a great time to buy...
My googl shares are only up 40% from a year ago so appreciate any help;)