Tech Rally is one of our Limited Edition Kits, positioned to capitalize on stocks in tech sectors. This Kit uses a long-short approach (like a hedge fund) to create a paired trade in two core tech sectors: technology and communications services. The fund rebalances weekly for an optimal mix of the two sector ETFs. Based on market sensitivity of these long positions to the DOW 30, we add an inverse ETF (the short) to go up against it.

Example of Kit allocation in a given week:

  • Microsoft Corporation (MSFT)

  • Apple Inc. (AAPL)

  • Alphabet (GOOGL)

  • Meta (FB)

Kit benefits

Tech is undervalued, so investors can benefit from this fast-growing industry compared to lower-growth companies and industries. Forward expectations for the two categories in our long basket are higher than traditional companies, like the Dow, which is also more expensive to buy shares in.

Asset class focus

U.S. equities through ETFs

Risk level

Low

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