No. of Recommendations: 0
I was looking the other day at all 7 of my mutual funds and trying to determine how much tech exposure I had. Using the Morningstar site, I checked the top five holdings of each of my funds. I found that the Vanguard 500 Index and the T. Rowe Price Science and Tech funds both hold Microsoft and Cisco in their top 5. Further, of the top 10 holdings of my 7 funds, there were only 51 unique entries. Of the 51, twenty were what I would call "tech" stocks. Three stocks were held by three of the funds (Microsoft, Intel and Exxonmobil) and seven more stocks were held by two funds (Cisco, IBM, Qualcomm, Lucent, Walmart, Merck, and Sony). This surpised me because my 7 funds include a large cap value fund, a small cap index fund and an international fund.

My recommendation is to look at the specific companies held by funds that you are considering for diversificaiton to ensure that there is not too much overlap.

dave
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement