Investors are sometimes lured by the excitement of the technology sector, but many fail to sustain the momentum
Investors are sometimes lured by the excitement in the technology sector, brought about by the technological revolution disrupting current business models.
Oftentimes, investors would jump at the earliest chance to take part in the booming industry. Many, however, fail to sustain the momentum due to not having a concrete plan.
Martin Pelletier, a chartered financial analyst and TriVest portfolio manager, said in a piece he wrote for Financial Post that investors should be aware of how technology is shaking up traditional businesses to avoid getting stuck in a value trap being offered by disrupted sectors and industries.
As it turns out, technology investments, however attractive they might appear for some investors, need careful planning to successfully dodge risks. Taking part in ETFs that invest in technology firms could be a viable way of lessening the perils.
For starters, Pelletier mentioned the ROBO Global Robotics and Automation Index ETF, which invests in a number of fast-growing robotics technology and Artificial Intelligence companies. The ETF has more than $1.3 billion in net assets.
Private equities are also one of the safer options. For instance, the Israel-based OurCrowd provides access to individual, pre-vetted deals on a company by company basis. The equity crowdfunding platform is built for accredited investors seeking to invest with well-established venture capital firms.
Pelletier said investors have to keep in mind that the sector is ripe with volatility and often possesses a lot of risks.
"Either way, staying on top of it can provide some helpful information with regard to any potential disruptive threats to your more traditional bread-and-butter investments," he said.
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Are advisors ready to embrace the robos?
Have investors missed the emerging markets opportunity?
Oftentimes, investors would jump at the earliest chance to take part in the booming industry. Many, however, fail to sustain the momentum due to not having a concrete plan.
Martin Pelletier, a chartered financial analyst and TriVest portfolio manager, said in a piece he wrote for Financial Post that investors should be aware of how technology is shaking up traditional businesses to avoid getting stuck in a value trap being offered by disrupted sectors and industries.
As it turns out, technology investments, however attractive they might appear for some investors, need careful planning to successfully dodge risks. Taking part in ETFs that invest in technology firms could be a viable way of lessening the perils.
For starters, Pelletier mentioned the ROBO Global Robotics and Automation Index ETF, which invests in a number of fast-growing robotics technology and Artificial Intelligence companies. The ETF has more than $1.3 billion in net assets.
Private equities are also one of the safer options. For instance, the Israel-based OurCrowd provides access to individual, pre-vetted deals on a company by company basis. The equity crowdfunding platform is built for accredited investors seeking to invest with well-established venture capital firms.
Pelletier said investors have to keep in mind that the sector is ripe with volatility and often possesses a lot of risks.
"Either way, staying on top of it can provide some helpful information with regard to any potential disruptive threats to your more traditional bread-and-butter investments," he said.
For more of Wealth Professional's latest industry news, click here
Related stories:
Are advisors ready to embrace the robos?
Have investors missed the emerging markets opportunity?
