Given that a more general fund will also hold shares in energy, consumer, financial, construction, etc. companies, how do you explain the focus exclusively on technology companies? If you look at the average annualized return of this technology index, it is much higher than standard global index funds. This has an average annual return of 20.40% over the last 10 years. That seems to me to be an advantage. Given the composition and, more importantly, the size of the fund`s major securities, what does this tracker index offer that a more general index fund/tracker (i.e. S&P 500 or FTSE Global All Cap) does not offer? It occurred to me that taking advantage of the strong growth of technology stocks without betting on a single one could be a rewarding risk. So I started looking for Global Technology Index funds. Most of the fund holds investments from a specific market sector, that of information technology. Funds like this can be more volatile than funds that invest in many sectors of the market. Indeed, especially in the short term, the value of the fund can increase and decrease more frequently and larger amounts than more diversified funds. I use WCLD for this purpose, although it leans toward B2B enterprise software and therefore doesn`t include consumer tech companies. It`s aimed at the most established tech companies and Big Tech in particular, so you`ll have a significant overlap with any general trackers you own. If you want a more diversified portfolio, I would consider a fund that focuses more on high-growth technology start-ups.
I have a surplus of £10,000 which I have no use for. I want to invest it in the next 10 to 20 years. I don`t mind short-term risks, stock market crashes and volatility because I have a separate emergency fund and income I can rely on. In view of other strokes of luck, I can add more to this balance later. The objective of the Fund is to achieve growth by tracking the performance of the FTSE World Technology Index (the „Index“). This objective is after deduction of fees and taxes. Technology is currently the limiting factor for growth and innovation in all companies around the world. Any business that wants to grow and survive must continually adopt and expand the use of technology. As a result, I believe tech companies will take a disproportionate share of growth over the next quarter century. This has also been the case for 20 years. What do you all think of this particular fund and my overall strategy? Industry: AI Technology and technological innovations (See sector) The top 5 stocks are Apple, Microsoft, Alphabet/Google and Facebook.
They represent 41.5% of the fund, of which 77% is invested in the United States, 10% in developed Asia and 5% in the euro area. 80% in global technology, another 18% in communication. 98% effective in Tech or Tech Related/Adjacent Are you happy to be 77%, i.e. overweight in the United States? (they are 51% by weight of IIRC) This unit has been added to your cart to view your cart, click here Fund tracks the FTSE World Technology Index. The ongoing fee is 0.32% A tracker fund that invests in IT companies around the world. The return on this fund depends on relatively few individual investments. This means that a loss in value of an individual investment can have a major impact on the fund`s overall performance. Legal & General Global Technology Index The accumulation of Trust Class I www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR06I57 therefore very skewed towards the United States and very distorted towards technology. Ideal if the U.S. and technology continue to work exceptionally well. What`s your plan if they don`t? Past performance is no guarantee of future performance.
I do not agree with your assessment that it is „distorted“ vis-à-vis the United States. The U.S. is now home to all the headquarters of all major tech companies. If technology companies in other countries grow and replace them, the index will end up with a lower U.S. percentage. So I don`t think it`s a problem. We are not commenting on this fund at this time. I have been using it for a few years, it is one of my main pieces in Mrs.
LISA, JISA son and my SIPP. By far the best thing I`ve bought so far!.
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