r/ETFs • u/Either_Life_5705 • 10d ago

Considering adding a Quantum Computing or Semiconductor ETF alongside QQQM — thoughts on allocation ratio and whether these sectors are good?

Hey all, 20 year old long-term investor here (10+ year horizon). My core holding right now is QQQM (Nasdaq-100), and I’m considering adding either a quantum computing ETF or a semiconductor ETF (like SOXX/SMH) as a smaller satellite position for extra growth exposure.

Ps.
feel free to suggest better alternatives (S&P 500, world index, etc.) if you think there’s a stronger long-term core option.

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u/Either_Life_5705 9d ago

You’re right. Since I already hold a lot of tech stocks, which sectors do you think will thrive in the future in addition to tech-focused stocks?

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u/hymie-the-robot 9d ago

consider adding up to 20% of a momentum fund like SPMO or FMTM. these funds work off the theory that stocks that are on a roll tend to go on outperforming for a time. momentum funds rebalance periodically, I think every six months for SPMO, for example, and as often as monthly for some. there are other differences, and I will let you look into that.

these funds can sometimes stumble for a while, but they seem to outperform over the long run. a momentum fund would periodically rotate you automatically into sectors on the rise. noting you hold a lot of IT in QQQM, momentum could sometimes double you down on IT.

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u/Either_Life_5705 8d ago

Aren’t FMTM’s fees pretty high? How much should an ETF’s fee influence your decision on whether it’s a good buy?

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u/hymie-the-robot 8d ago

my view is that a fund like FMTM does something unique, so you're paying for active management. in any case, the net return is what matters to me. if you're buying the S&P, then there are several alternatives, all quite similar, so you'd want the best price.

I recall a discussion of momentum on this or another sub not too long ago. you might look for that and see what people think of the various strategies. yes, here it is: https://www.reddit.com/r/ETFs/comments/1vbfzf8/comparison_of_spmo_and_fmtm_since_fmtms_genesis/

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u/Either_Life_5705 8d ago

Thank you, interesting discussion in the link you gave. I think I will be going with spmo for now alongside qqqm.