Sanrith Descartes
Veteran of a thousand threadban wars
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FTEC buy filled at $97.50
I want to clarify something some asked me about. So on one hand I am overweight AAPL and MSFT and on the other hand I continue to add to FTEC (whose two largest holdings are AAPL and MSFT). This tends to (ok, not tends to; it does) violate my portfolio weights. This is a valid point.
My reasoning is a> AAPL and MSFT are the two strongest companies on the globe,
b> I switched from QQQ to FTEC to avoid Comm Sector stocks like GOOGL/TWTR/FB even though it has a much higher weighting of AAPL/MSFT and have since decided to carry positions in the two strongest Comm stocks (GOOGL and FB),
c> In the current environment, I think adding to indexes is the best investment overall,
d> I purchased GOOGL and FB knowing i didnt own an ETF that carried them so adding something like QQQ now would muck with my weights for them.
So while I can still get burned with two companies holding larger than ideal positions I made the decision to do it because of who they are and the acceptable risk level. I also acknowledge that at some point down the road when the market recovers I will have to trim some individual shares of AAPL and MSFT.
The biggest regret I have swapping from QQQ to FTEC is that i cant sell covered calls in FTEC because the options market for the ETF is very low liquidity.
Edit: Adding my current portfolio weights. Those colored in blue are holdings of FTEC and it is calculated in.
I want to clarify something some asked me about. So on one hand I am overweight AAPL and MSFT and on the other hand I continue to add to FTEC (whose two largest holdings are AAPL and MSFT). This tends to (ok, not tends to; it does) violate my portfolio weights. This is a valid point.
My reasoning is a> AAPL and MSFT are the two strongest companies on the globe,
b> I switched from QQQ to FTEC to avoid Comm Sector stocks like GOOGL/TWTR/FB even though it has a much higher weighting of AAPL/MSFT and have since decided to carry positions in the two strongest Comm stocks (GOOGL and FB),
c> In the current environment, I think adding to indexes is the best investment overall,
d> I purchased GOOGL and FB knowing i didnt own an ETF that carried them so adding something like QQQ now would muck with my weights for them.
So while I can still get burned with two companies holding larger than ideal positions I made the decision to do it because of who they are and the acceptable risk level. I also acknowledge that at some point down the road when the market recovers I will have to trim some individual shares of AAPL and MSFT.
The biggest regret I have swapping from QQQ to FTEC is that i cant sell covered calls in FTEC because the options market for the ETF is very low liquidity.
Edit: Adding my current portfolio weights. Those colored in blue are holdings of FTEC and it is calculated in.
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