Investing in U.S Tech/FANG stocks?

Linton

In 2008 SMT dropped by 60% .  So perhaps not the best place for your life savings.

doe808

Alexland said:

doe808 said:

I'd presumed (wrongly) that it would fair worse that the market in any downturn.

Depends on the downturn. This one worked well for tech stocks. Who knows for the next one?

Exactly. Goes to show you should never place too much weight on your assumptions.

iglad

RolandFlagg said:

I'm not expert, but I believe the way the virus will shape our future is that more and more the big online firms will get stronger, and I want more exposure to these stocks.
Fang stocks: Facebook, Amazon, Netflix, Alphabet (Google).
As well as others who's business is solely online or in tech, such as Apple, Nvedia and PayPal.
I want to hold these type of stocks for the very long term.
Obviously I could go to somewhere like AJ Bell and buy these stocks individually, but I wondered if there is ETF I can SIPP that covers these stocks?

L&G Global Technology Trust is worth looking at up 33% over 1 yr  82% 3yr and 181% 5yr and was the best performing Index fund in 2019 in fact it still is in 2020.
I've had 19% gains with it since January when I invested in it.          . 

Sue58

Nearly all Global Technology funds and trusts have had a few good years: Polar Capital Fund or Trust, Allianz Tech Trust and the Axa Framlington Global Technology Z Acc (which I hold).

iglad

Sue58 said:

Nearly all Global Technology funds and trusts have had a few good years: Polar Capital Fund or Trust, Allianz Tech Trust and the Axa Framlington Global Technology Z Acc (which I hold).

They most certainly have especially over the last 10 yrs with average returns of over 400%  and Allianz with 600%. I also hold Axa Framlington in addition to the L&G Global Tech and have no complaints with either fund as both have double digit gains (22% & 18% YTD)

Moe_The_Bartender

It's arguable that the FANGs are not tech stocks. Facebook is a huge advertising agency, Amazon is an online retailer etc. For genuine tech, you have to look elsewhere.

Prism

Agreed, you will need to decide if you want a tech fund (Apple, Microsoft, Intel, Cisco) or a FANG fund as both are quite different. A Nasdaq tracker is probably your best bet 

Thrugelmir

Interesting to read that Apple has spent $324bn on share buybacks in the past few years. If the share buybacks are discounted. EPS is currently what it was back in 2015. Financial engineering is certainly a way of flattering underlying financial performance. 

Prism

Thrugelmir said:

Interesting to read that Apple has spent $324bn on share buybacks in the past few years. If the share buybacks are discounted. EPS is currently what it was back in 2015. Financial engineering is certainly a way of flattering underlying financial performance. 

Agreed, lots of manipulation. Apple's earnings are up about 20% over the last 5 years and if you remove the Trump tax changes they are less than 10% up. Meanwhile earnings per share are up about 50% due to buybacks. Share price up 150%

stuart746

Would go with the cautious comments here... tech stocks probably hugely over valued, current P/E ratios double those of most medium to large size companies as anticipated future growth is already priced in to the stock value...