A Way to Invest in Tech Without Concentration?

I just wanted to touch on the diversification topic a little more because if you dig into these portfolios, I mean, you look at the name, you go robotics and AI, and you'd assume it's just a tech heavy portfolio. Probably has a lot of the MAG7 names in it. In a sense, you're sort of right.

I mean, it does have a lot of tech in it, but it's got a lot of industrials in it as well, a lot of the manufacturers and things like that. If you dig down into the holdings of this fund, I mean again, BOTS has a 10% weight in Nvidia right at the top of the portfolio, but if you look at the top 30 holdings of both of these funds, there's not another Mag 7 name to be found in there. So, in that sense, you're kind of getting the tech exposure without the heavy mega cap tilt that a lot of these tech funds and even the major indices have nowadays.

Again, when you're investing in a theme like this that goes beyond just tech, you get the opportunity for outperformance. If you look at that year to date, the industrial allocation in both of these funds has helped both funds outperform the tech sector by about five or 6% year-to-date so far as we're recording this. Now that's just a very short time frame.

Admittedly, we're kind of cherry-picking here a little bit, but again, it's kind of the point of you don't necessarily need to invest in all tech to get kind of a tech theme. You get something like this, it's a little more diversified. You kind of get away from some of the biases that are in some of the major indices nowadays. So, this is kind of an interesting case where you can invest in a tech theme without the heavy tech exposure.

In that sense, I think both of these funds can be potential diversifiers while you're still participating in some of the development of the AI economy and things like that. So, just something I noticed and just worth pointing out that sometimes you can look at a tech theme and find out once you dig under the hood a little bit, it's more than tech. And I think this is one of those examples. So I'll call it a split decision because it sort of applies to both of them equally.