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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Djarmol8988 on December 22, 2017, 07:52:04 PM

Title: Sector Investing
Post by: Djarmol8988 on December 22, 2017, 07:52:04 PM
Hello,

I am intrigued by ETF's that are sector based. I see robots, AI, etc. playing a huge role in our future and funds like ROBO (https://roboglobaletfs.com/) and BOTZ (https://www.globalxfunds.com/funds/botz/) seem to have capitalized on this over the past year. I also see other trends, like an aging US population that is going to benefit certain sectors of the economy more so than others. Biotechnology is another area that I "think" will revolutionize medicine, agriculture, etc.

I recognize this is me thinking that these things will outperform the market. Is it dangerous to lurk in these waters? Am I better of just sticking to traditional index funds rather than gambling on these sectors that I honestly haven't done my full research? Perhaps only devote a small section of my portfolio to these riskier investments?

Thanks in advance,

Dan
Title: Re: Sector Investing
Post by: Apple_Tango on December 22, 2017, 09:25:02 PM
Over 75% of my equities portfolio is in the trusty VTSAX. I love it. But the other 25% are sector funds. Iíve got one healthcare fund, one tech ETF, and one gold fund. One of those has been an absolute rockstar for several years since 2009 with 27% return this year, blowing VTSAX (19.96 ytd)out of the water. Gold hasnít gone anywhere (6%return this year)  The last one I have is a new fund established in 2016, early days still so the jury is out but so far with a 33% return ytd.

I would say look for a growth fund that had at least a 10-15 year track record, and research it before you invest. Iím partial to healthcare and tech :)
Title: Re: Sector Investing
Post by: Djarmol8988 on December 22, 2017, 09:44:57 PM
Thanks Apple_Tango. Healthcare and tech seem like good bets.