Last Updated on 9 January 2021 by F.R.Costa
Get exposure to the technologies trends of the future without incurring unnecessary risks. Article originally published at Master Investor Magazine July 2019 Issue 52 p. 38-45.
Investors have always been enthusiastic about new technologies, as they believe they can disrupt markets and deliver big profits. Still, unlike what happened in the 90s, new trends are not always well represented by a single sector but instead may occur in almost every sector. In order to get proper exposure, investors may then need to invest across sectors.
Some classic ETFs like the Technology Select Sector SPDR Fund (NYSEARCA:XLK) and the Vanguard Information Technology ETF (NYSEARCA:VGT) give investors a classic exposure. The new Goldman Sachs/Motif ETFs and the ALPS Disruptive Technologies ETF (BATS:DTEC) are more targeted funds and may be an excellent option for individual investors.
XLK has survived the ups and downs of the market for more than 20 years, and its assets under management have increased to $20 billion, which makes it the largest fund covering the sector today.
Individual investors can now get a piece of the market without incurring too much risk, with ETFs providing diversification benefits at a fraction of the cost.
You can read the full article at Master Investor Magazine July 2019 Issue 52 p. 38-45.