What am i HODLing: ONTO

This is not investment advice and is intended for entertainment purposes only

We are kicking off a new series so I’m actually making this one concise… I promise!

Thank you to everyone who supported in my first month of What am i HODLing?

Ya’ll are all part of my first 20 Stonk Enjoyers - thank you for making it happen!

@courtneymay64

#greenscreen

Part one!

So let’s say you really like a lot of different companies within an industry or a sector… does it make sense to invest in all of them or should you just pick one?

This is a really good question actually.

If you have conviction that a sector of the economy is going to do well, you probably would want to invest in companies within that sector.

Sectors are pretty big right?

Yes. They are pretty broad and can be broken down into segments that you can invest in.

You can zoom in even more and invest in a sub-sector of the economy and would be doing something called thematic investing.

A few years back at Fidelity, I really got to look at the 11 different major sectors that make up the S&P 500. Like many people, I was drawn to the technology sector.

The technology sector includes names like META, NVDA, AAPL and other top performers in the S&P 500. It’s definitely for the growth lovers.

With everything happening with AI and autonomous vehicles, I felt incredibly bullish on the semiconductor space.

Thus began my portfolio reallocation to the semiconductor space.

Semiconductors: My thematic play

Semiconductor companies make chips. Chips make things operate.

That’s my definition and I’m sticking with it.

It’s obviously way more complicated than that, but for my strategy, it’s the perfectly simple definition.

Thematic position: ONTO

Ticker: $ONTO

Position Size: 33 shares

% of Portfolio: 2.5%

I started with $ONTO since it was the first video I made (aw senti).

It’s on the smaller side of my allocation and is honestly kind of random in terms of semiconductor names.

I chose it because it I wanted a mid-cap name that had a lot of upside potential and it checked both of those boxes.

Are there ways to invest in the semiconductor space without owning all the individual stocks?

Yes!

You can use this beautiful thing called an ETF to invest in a basket of companies bundled together into a neat little package.

They are simple and clean to use and with typically low expense ratios.

But since I’m 25 and love the stock market and have time to kill I decided to do it myself instead of using a semiconductor ETF…

Semiconductor ETFs

Here are the two thematic ETFs to curate my current portfolio’s semiconductor holdings:

1. $SMH

   1. (Not to be confused with shaking my head) but VanEck Semiconductor ETF

   2. This one is very well-liked because it has the lowest expense ratio

2. $SOXX

   1. iShares Semiconductor ETF

Now get this: ONTO isn’t actually in either of these ETFs…

I believed it would be a winner though and had a lot of upside in the space.

I chose it because I wanted some small-to-mid cap exposure on the growth side.

How it’s going:

My total return is up 55% for the position since acquiring it in October of 2021. So this pick was a WINNER.

Courtney: 1

Thematic ETFs: 0

But over the next few weeks we’ll dive into my entire semiconductor allocation and see how it compares to similar thematic ETFs.

Who will win- Courtney or iShares…

Find out in the upcoming weeks!