Adding to Big Tech behemoths

Main photo: Server room by Torkild Retvedt, licensed under Creative Commons Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)

I’ve previously discussed my holdings in US big tech companies and the ETF I’ve been using to get exposure. Well, I’m not entirely convinced that I want to carry on paying extras fees and have been considering managing this sub-portfolio myself rather than pay First Trust. So I’ve not totally bitten the bullet by liquidating my holding in the First Trust Dow Jones Internet ETF. But I have allocated more to individual stocks this month with my regular transfer of cash. I’ve not gone into any great analysis in how I’ve decided which companies, except for a very cursory glance at the Forward P/E and Price/Book. With the big surge in stocks after the Covid-19 crash some of these ratios are looking quite expensive, even though these are considered growth companies. I’ve already got the big giants covered, so have selected five, which feature lower down as holdings of the First Trust ETF and have more reasonable Forward P/E and Price/Book. I ruled out Snap, Workday and Zoom for the moment. The ones I’ve taken a holding in are as follows…

  • Cisco
  • Netflix
  • PayPal
  • Salesforce.com
  • Twitter

I still haven’t 100% decided how I’ll proceed from here. Whether I’ll use the First Trust Dow Jones Internet ETF as a guide, or another fund or index. But I think I’d prefer to tweak this myself, although it will take a little bit more management than just buying the ETF every so often.

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