Here's Why I'm Finally Putting New Money Into VGT After Avoiding It for 2 Years
I was satisfied with the tech and AI exposure in my portfolio. Here's why I decided to overweight them even further.
Overview
I've always made low-cost, broad index ETFs the core of my personal portfolio. I simply don't research individual stocks or narrow sectors enough to feel like I can give myself an informed advantage. So I stick mostly to total market and broadly thematic options, such as growth or dividend ETFs.
I went outside of that strategy earlier this year, buying shares of the Vanguard Information Technology ETF (NYSEMKT: VGT) for the first time.
You're probably thinking that I decided to chase performance based on returns of the past few years. I actually didn't. I base my trades on forward-looking fundamental metrics that reflect where I think the sector is going, not where it's been. Plus, I think the valuations are reasonable enough at current levels that the risk/reward trade-off is more than acceptable.
Details
Source
Originally published at www.fool.com.