This Strategy Will Work... Until it Doesn't

So, one of the things I noted when I was talking about um you know performance um is that um QQQG and QZ are fairly new funds.

One being launched in December 23.

So, it just barely has a one-year number and the other one doesn't even have a one-year number.

And that speaks to this trend that we've seen in the last I want to say 24 months of everybody in their mother taking a strategy that they had either against the S&P or a larger Russell indic identical strategy to the NASDAQ and that has to do with just Nvidia, the Nvidia effect and all those stocks that are super heavy in the NASDAQ that people want exposure to and so they're just reinventing a product that's been successful and applying it to a different index.

So that is a trend but I don't know that it's a trend that is a valuable trend if you're building portfolios.

Um in essence the screens that these products are using are kind of resulting in the same exposures.

I mean even cowg has 54% of its portfolio in tech and has virtually an identical top 10 to the other two.

So you're still getting the exposure you want.

But I think over time when you know markets don't persist the same way forever even though sometimes we feel like they do u there will be a point in time where Nvidia and uh some of those other high-flying AIdriven tech names are not the leaders of the market.

And I know it sounds crazy but if you look at the history of the market there's always been one or two stocks that were like for decades right up at the top and then some of them don't even exist anymore.

Uh point being is that trends change.

They do last a long time.

What you do want is to have a portfolio that has a universe to choose from that's somewhat diversified. >> You mean companies like MCI WorldCom and AOL? >> Like exactly like that.

You can go back even further and you go back to like the 20s, 30s, and 40s and you're talking about oil companies that all merged into each other.

Uh so yes, that's exactly what I'm saying.

Um, and for that reason, I want um a universe to choose from that's going to be more robust and diverse, and that's going to be cowg.

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