Port Rec's Mike

ETF Portfolio Breakdown

Tech: Apple, SOXX, VGT

Healthcare: MDT (medical devices), Moderna (pharma

Communication Services: Netflix

Utilities: UTES

Multi Sector: DSI, NUDM

The Strategy: Since the goal is diversification, it makes more sense to reduce concentration risk in the technology sector as opposed to investing in ETF’s that complement it. Things that are complementary move together, so as VGT increases / drops, so would the complementary ETF... not really hedging any risk / losses but magnifying it instead.

• IN SHORT: let’s invest the $2500 in an ETF that has low correlation to the tech sector.

ETF Ideas & Why:

Consumer Staples ETFs: The ETF portfolio doesn’t have any consumer staples whose demand remains steady during economic conditions. The current economy is shaky; we’re at risk of a recession. Technology tends to. bemore senstitive to economic factors so as tech possibly dips in the future, consumer staples will either remain constant or increase as people tend to overindulge during crises.

Financials: Financials have a different weather pattern than tech, tech flourishes when interest rates are low because money is cheaper while financials are the opposite (flourish when interest rates are up because financial institutions make more money). Also, financials have a sense of stability as opposed to guessing if certain innovations will pay off how tech is more so

Specific Picks:

VDC (Vanguard Consumer Staples)

• low expense ratio (no change)

• performing with the benchmark or slightly under

• less YTD returns (11% ish drop)

OR Fidelity MSCI Consumer Staples

VFH (Vanguard Financials)

• low expense ratio (no change)

• performing with the benchmark or slightly under

• less YTD returns (17% ish drop)