The never-ending search for the next explosive sector to invest in (and get in as early as possible) continues for most investors, many of whom are lamenting the fact that they perhaps missed out on some amazing bull runs of late in the technology, cryptocurrency, and cannabis space in Canada.
With some investors suggesting these sectors have significant room to increase further, holding tight may in fact be the way to go for 2018. For those who believe the bulk of the increase may already be priced in to current valuation levels, looking for the next greatest growth category is the thing to do.
Having an Exchange Traded Fund (ETF) take all the work out of finding the next innovative trends is one option ETF companies are relying upon. Newly founded ETFs such as the iShares Exponential Technologies ETF (NASDAQ:XT) is focused on aggressively pursuing the companies they believe will provide maximum growth in a technology sector which has done nothing but see massive gains in this most recent economic recovery following the Great Recession.
As some investors increase their bets, focusing more on offense and less on playing defense with portfolios, the rise in aggressive growth funds looking for “exponential” gains should be expected.
That said, for most prudent investors, selecting the portfolio allocation percentage toward such an aggressive fund should be the priority – investing too much in the higher risk segment of the market has proven to be an exercise in volatility, and in this current bull market, keeping some dry powder in addition to a small percentage of mad money may be the way to go.
Invest wisely, my friends.
