The overnight action in the US market signals that peak interest rates are in the near future, and we have reached the pivot point for this market. So, it is time to get long this market and let the recovery gain traction for the remainder of the year and beyond.
The gain broad market exposure to the recovery we are today going to open a position in an Exchange Traded Fund (ETF). The ETF we will be buying is called is BetaShares S&P/ASX Australian Technology ETF (ATEC).
The main holdings in the ETF are:-
- Computershare (CPU) – 11.8%
- Wisetech Global (WTC) – 9.7%
- Seek (SEK) – 8.7%
- Carsales.com Ltd (CAR) – 8.5%
- Xero (XRO) – 8.2%
- REA Group (REA) – 6.9%
- Altium (ALU) – 4.9%
- NextDC (NXT) – 4.8%
- Block Inc (SQ2) – 4.1%
- Technology One Ltd (TNE) – 4.0%
The top 10 holdings make up 71.6% of the exposure of the ETF.
The ETFs holdings are made up of a number of companies that have been among the best-performing shares in the Australian market this year such as Computershare and Wisetech Global while also having several companies that will be technology leaders in the future but have fallen sharply recently such as Block Inc, NextDC
The ETF will provide broad exposure to a recovery in the Information Technology Sector.
Trade Action
Quantity : Buy 600 shares
Entry : Buy up to $16.25
Stop Loss : $14.25
Target Price : No target price for the moment
This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.