LoginSignup
immagine del profilo
Fabzy ✨
@Fabzy
2Anno·

Sector bet - Quo vadis?

or

Help, a sector ETF on getquin


Between the years is a very good time to think about your investment strategy. Surrounded by family, you can take a breather while the kid is still busy with way too many Christmas presents and you don't actually know what day of the week it is.

In the last post I already mentioned that the market situation has awakened in me the attraction to invest in individual stocks.

As this changes the structure and distribution in my portfolio, I've also been questioning my previous purchases, most notably the one mentioned above $2B76 (+0,55%).


A year ago, it was started to be parsed, as an individual note in a world portfolio that was too boring until then. As I said, I did not want and could not deal with individual stocks at that time.

At that time, this ETF contained values such as $NVDA (+6,24%)
$AMD (+1,06%)
$GRMN (+0%) and even $AAPL (-0,34%) were represented and appeared among the Top10 positions.

If you look at the Top10 positions today, they are no longer the ones mentioned, which are still included, but which you have to look for more closely. So something has changed in the included positions and their weighting.

The fact that I am $2B76 (+0,55%) in my portfolio with 15% in the minus, does not even bother. So it's not about selling due to panic at double-digit price losses, but to question one's own strategy and the fit of the existing values to it.


But what does the ETF actually do?

Automation & Robotics currently invests in 159 companies that develop technologies in the field of automation and robotics in industrialized and emerging countries. The automation of processes in industry, in the manufacture, storage and distribution of products, the use of robotics to supplement or replace humans in the above-mentioned areas is where I am active myself through my job and where I want to invest.


Launched in 2016 and since then it has delivered the following perfomances:

2017: +46,8%

2018: -18,3%

2019: +37,8%

2020: +38,8%

2021: +21,0%

2022: -30,27%


So performance is swinging out quite a bit, both up and down. An indication that if it went down strongly, it can also go up strongly again?


Sector bets are not really popular on getquin. So now settle the question: What to do with this thing?


What are the possibilities?

  • Dissolve sector bet and split it into world and single stocks
  • Leave the sector bet and do not continue to manage it
  • Continue sector bet


Is my investment case still intact?

While writing the lines about what the ETF actually does, there it was again, this tingling for the topic of automation. I just think it's awesome when companies develop technological solutions that make work easier and or take it away, thereby increasing productivity.

Have you ever been in a sparkling clean warehouse, where the machines and robots just shine and are reflected in the floor? Or things like pressing a button in my home office and seeing a pallet on a conveyor system on the other side of the world? Hach ... I love that.

I'm still burning for the topic and therefore want to remain invested in the sector.


What about the companies in the ETF?

Since I admittedly can't really do much with the current Top10 positions from the ETF, I also sat down again and looked at the companies. Here is a small excerpt from the Top5:


Lattice Semiconductor Corp (USA, 1.56%)

Manufactures programmable semiconductor products for AI, infrastructure 5G and factory automation.


Intuitive Surgical Inc (USA, 1.55%)

Develops and markets robotic video systems for surgery.


Lasertec Corp (JAP, 1.52%)

Develops and sells inspection and measurement equipment.


Coupa Software Inc (USA, 1.50%)

Provides cloud-based software to connect customers with suppliers and optimize supply chains.


Rockwell Automation Inc (USA, 1.49%)

Specializes in automation and control systems for the food, automotive and energy industries.


-> No companies that I would have thought of investing in individually at this point.

A few more familiar faces are also still represented in the ETF. These include, for example.


  • Nvidia (0.97%)
  • AMD (0.79%)
  • Garmin (1.10%)
  • Keyence (1.23%)
  • SAP (1.30%)
  • Snowflake (1.29%)
  • Intel (0.79%)


If you look at the weightings of the individual companies, you will notice that they are fairly evenly weighted. A plus point of the ETF in my opinion.


I want to stay invested in the sector. Now the question, whether it remains the ETF or should be switched to individual stocks?

After the research of the companies I have to say that I could not determine the one or the two companies from which I expect the most in the future in the field of automation. Sure, I could put chipmakers or semiconductor stocks in my portfolio to cover even broader areas than just automation, but that would lose me my investment case. And who doesn't believe that we will be operated by remote-controlled robots in the future? 😉


What is the solution now?

By re-examining the ETF and the companies in it, ultimately nothing will change in the positions in my portfolio. The sector bet will continue and after one or two suspensions in favor of individual stocks, will be started again in the new year.

What I will pay attention to is the weighting in the portfolio. By adding the individual stocks, the share of the World+EM dwindles, which I do not want to let fall below 70%.


So even though sector bets are relatively unpopular, at least here on getquin, in some cases they also fulfill an investment case better than single stocks and can therefore work very well as an admixture.

Nevertheless, unlike with a world ETF, you should ask yourself more often whether the stock selection still suits you. Over time, not only the weightings of the positions in such ETFs change, but also personal preferences, risk tolerance and one's own strategy.


In this sense, I wish all who have made it this far a Happy New Year and a positive return year 2023! Let the corks pop 🍾


16
24 Commenti
immagine del profilo
Nostradonkey💩@DonkeyInvestor
2Anno
Nice reflection 🙂 . You can't identify the 1, 2 companies that will go through the roof? Why not? Because the profile and delineation is possibly too fuzzy? An indicator for me that there will still be a nice selection in the area and that will give the ETF properly. I therefore stick to it: fingers away from too narrowly set sector bets.
•
5
•
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@DonkeyInvestor For an investment in 1, 2 companies that go through the roof, it requires enormous research work and if I have then selected the two wrong, I have total loss. If selection takes place, then now. And then it's already too late :D Fortunately it's an ETF, there's always a bit of shrinkage. And I still believe in the assessment that the world will be outperformed over the next few years.
•
1
•
immagine del profilo
DerMartin@DerMartin
2Anno
I think this is a perfect sector for an ETF. For the "big, well-known" stocks, the sector is often only a small part of the company, so investing here makes relatively little sense in terms of the theme. And to invest in one of the "small stocks" would require immense research. I like the ETF and am also considering a savings plan.
•
1
•
immagine del profilo
Lucrash@KapriolenCapital
2Anno
I wanted to hate here first, but after I have looked at the positions there is also a lot of reasonable. Coupa was bought for 8 billion a few weeks ago. Garbage like UI Path which is not growing anymore and Microstrategy with the big Bitcoin bet are of course questionable. And the Getquin darling Brainchip is also in there 🙃 I would even almost get myself, but maybe there are still ETFs that are cheaper 👀
•
1
•
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@KapriolenCapital A bit of a mixture of everything. A few big names, interesting smaller individual stocks (without going deep into the numbers), companies I'm also involved with myself. Brainchip with incredible 0.18% weighting. I celebrate purely from a professional point of view $AUTO. Great product for space-saving storage.$ZBRA would still be missing for me.
••
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@KapriolenCapital Another plus point is the geographical distribution: 51% USA 16% Japan 20% Europe, 5% of which is DE. Other IT ETFs are simply much more US-based. That was definitely one of the reasons why I chose it at the time.
•
1
•
immagine del profilo
Lucrash@KapriolenCapital
2Anno
@Fabzy I noticed that too, so I don't think it's so wrong. I like the Japan and Europe portion and investment banks have also rated these zones as interesting or undervalued in the reports shared by @TheRealRapha.
••
immagine del profilo
𝙼𝚊𝚗𝚞@FrauManu
2Anno
I also found myself picking apart various sector ETFs and came across $ISRG with its RoboAssistant daVinci 🥰! The bottom line is that everyone somehow follows their passion when it comes to their own portfolio. Also, I find your thought to rethink his own InvestmentCase more like sensible! Happy New Year @Fabzy 🎉
•
1
•
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@FrauManu If you want to give your portfolio a personal touch, what could be more natural than to do it with what you already know? All probably a kind of job bias. You also a Happy New Year, with us there is Raclette.... Automate and let the pans go in and out by themselves 🚀
•
1
•
immagine del profilo
Jonas 🕊️@TheAccountant89
2Anno
I have often expressed my opinion about sector ETFs. Even if this ETF may be reasonably diversified (within the "sector"), most are rather seduced by emotions and the great names of these ETFs. You can see that in one or the other sentence. In addition, more expensive and in the long term in the rarest cases better than an All World or World/EM. As an admixture, as you also say, certainly legitimate in one way or another (depending on the investment strategy). Otherwise I am with @DonkeyInvestor. For me, soberly considered, therefore, no investment. You also a happy new year :)
•
1
•
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@TheAccountant89 Don't emotions and great names always play a role if you don't occupy yourself with your investments? This can also happen with individual shares just as crypto well and gladly. Euphoria prevails with me because I have fun at my job, and if it is then still a promising future industry, an investment is not wrong. And why is the ETF expensive? 0.4% TER with free savings plan execution, are mMn. completely acceptable. Every 1.5% order fee, let alone individual purchase fees at direct banks are significantly more. And I believe in outperforming even over several years. The only question that remains is the right time to exit. In contrast to the world, the air will inevitably be out at some point. Whether that is in 10 or 20 years, no idea. I hope I'll be wiser by then. But it will definitely have to be reassessed at some point.
••
immagine del profilo
How$y 🗽@Howsy
2Anno
I also had the ETF for a while until I took a closer look at the composition. Did not know a single company except for a few. Therefore out with it 🚮
••
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@Howsy and looking at the companies was not an option? 😅 Just because I know the business model doesn't mean that every company in it is or will be financially stable, let alone profitable. But it does give a sense of stock selection. Where do they come from, what do they do to make their money, what is the scale of their sales. As I said, reason enough for me to stay invested 😊
••
immagine del profilo
How$y 🗽@Howsy
2Anno
@Fabzy No, not really, because there is too much bullshit bingo going on in tech and automation companies. Another big point was the accumulation. It no longer fits into my investment strategy.
••
Rudinhooo@Rudinhooo
2Anno
@Howsy also available as a distribution
••
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@Rudinhooo yes there is $2B7FEdit: oh that was not a question but a comment 😅
••
immagine del profilo
Souli@Souli1984
2Anno
I was so glad when I got rid of it.....
••
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@Souli1984 why? what was the reason to buy it and what was the reason to reject it?
••
immagine del profilo
Souli@Souli1984
2Anno
@Fabzy in short, the development within the time as I had him in the depot. All the other etfs have also not exactly sprayed glitter and glamor but have developed much better. but I also had several such sectors etfs and that as a newcomer was not necessarily advisable.
••
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@Souli1984 yes the volatility is significantly higher, although I have it since the beginning of January bespare I by building the position over several months only - 15 and not the -30 ytd. I promise me in the next few years just a more than compensation
••
immagine del profilo
Souli@Souli1984
2Anno
@Fabzy I keep my fingers crossed for you. do you know the individual companies in which the etf buys in ?
••
immagine del profilo
Fabzy ✨@Fabzy
2Anno
@Souli1984 no, and that was also one of the reasons to look at the thing again. I did not go into the numbers, you can not do that in detail, but have looked at the companies, their business areas and what they earn their money, and otherwise scrolled through all the positions, what you know and what is not. I had not done as a beginner to the extent when I entered, but I now feel more familiar again. Honestly, I would have thought before my re-check, that I knock it out. But since I do not really see for now an alternative investment in the area that suits me and the ETF represents solid positions, geographic distribution and a good complement to the World, I stay in it 😊
••
immagine del profilo
Souli@Souli1984
2Anno
@Fabzy 😁😁 Ok I understand that, I keep my fingers crossed that you have more success than I :-)
•
1
•
~HK@El_Riemo
2Anno
I see it exactly like you. I have the same "problem" with my S&P 500 IT and my AI ETF. Once 15% and once 28% in the minus. Have also let it sit out for now and have also started fresh again. Will actually liquidate them if less loss, although I am also more than convinced of AI and IT and that is the future. When I look at ChatGPT...
••
Partecipa alla conversazione
IscrivitiAccesso