As Apple\u2019s valuation hit $2 trillion at the start of August 2020, it reminded many investors that technology is the investment they wished they had bought a decade earlier. While stocks can be a great way of profiting off the success of individual tech companies, exchange traded funds (ETFs) let you diversify your holdings by investing in multiple companies at once.<\/p>
The speed at which technology can come into a new industry and change it forever means there are always opportunities to make money. Investors see examples like Amazon, which is worth around 200X more than it was in 2001, or Netflix, which multiplied its worth by 55X over 8 years, and want a piece of that growth for themselves.<\/p>
Of course, technology is competitive. For every Amazon and Netflix, there is a tech company that doesn\u2019t succeed. Technology stories aren\u2019t always as compelling as they first appear, and companies need to be able to execute successfully on their ideas.<\/p>
That said, in today\u2019s environment, technology has become more important than ever, and there are probably more structural growth opportunities within technology than in any other sector. Most investors have long-term goals for their savings: they may be saving for retirement, or for their children\u2019s university fees.<\/p>
It makes sense, therefore, to future-proof an investment portfolio by aligning it with enduring structural trends. An investment in technology helps keep a portfolio focused firmly on the future.<\/p>