TDIV: Getting A Bit Cautious Now On Tech

Summary

  • Tech has been a long-term winner and, after falling a bit at the start of the year, is pushing higher again.
  • I see the recent momentum as a sign to be cautious. Tech, and TDIV by extension, have rallied as yields move lower. I believe this is a temporary development.
  • Taxes will be a sticking point in 2022, so preparing for higher rates now makes sense. With that in mind, the Tech sector will likely be facing higher obligations, on average.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »
Data particle above the city at night in cyber space
Hiroshi Watanabe/DigitalVision via Getty Images

Main Thesis / Background

The purpose of this article is to evaluate the First Trust NASDAQ Technology Dividend Index ETF (NASDAQ:TDIV) as an investment option at its current market price. The fund "seeks investment results that correspond generally to the price

Please consider the CEF/ETF Income Lab

This article was written by

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I've been a successful investor for about 15 years and my aim is to help my followers on their journey. I won't pump risky investments nor discuss topics I don't genuinely follow and research. In that spirit, I list my portfolio here for transparency.  

I'm a native New Yorker and I work for a major U.S. bank. I escaped to North Carolina for graduate school and I don't see myself ever leaving. I was a D1 athlete in college (men's tennis) and compete competitively to this day. My Bachelor's and MBA are both in Finance.

Broad market: VOO; QQQ; DIA, RSP

Sectors: VPU / BUI; VDE, RYE; KBWB; XRT

Non-US: EWC; EWU; EIRL; EWA

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Municipals/Debt Funds: NEA, BBN, PDO, PCK, VCV, PML

Stocks: WMT, JPM, MAA, SWBI, MCD, DG, WM

Cash position: 30%

Disclosure: I am/we are long QQQ, VOO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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