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Taking The Broad Approach To Investing In Technology

By Erik Folgate

Do you want to invest in global technology, but don’t know what stocks to pick? You know that I am not a big proponent of putting together your own portfolio of individual stocks. Let someone else do it who lives and breathes picking winning stocks. Smart Money magazine offers a great ETF and mutual fund to think of investing in if you want to add a little technology to your investing life.

  • Vanguard Information Technology ETF (VGT, $63).
    -One year return: 21.7%
    -Three Year Return: 13.8%
    -Expense Ratio: 0.25%
  • It invests in stocks like Cisco, IBM, Intel, and HP. It kind of makes me mad that they didn’t show the five and ten year returns, because those are the most important when buying a fund for long-term investing. Maybe it’s not five years old? The good news is that it has a small expense ratio.

  • T. Rowe Price Global Technology (PRGTX)
    -One Year Return: 27.4%
    -Three Year Return: 17.9%
    -Expense Ratio: 1.28%
  • This one has Cisco, HP, and Intel as its top holdings. 26% of the funds are non-U.S companies, for all of you U.S. economy haters.

I don’t pick stocks and nor do I stake a claim on which stocks will do well and which will not do well. I definitely don’t do as much homework as the boys from the Wall Street Journal, but you should never pick a fund or a stock based on one recommendation. Do your research and know what you are investing in and how it works before you put your money in there. NEVER invest in something that you don’t understand. I don’t own these funds, but when I have some more money to invest, I might look into the T. Rowe Price mutual fund, as I feel that technology is a sector that will continue to steadily grow as we progress as a culture. Now that the Tech Boom is over, we will start to see a more credible, and substantial gain in technology companies that are in it for the long-term.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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