Information from 13F filing give useful insights of tech stock allocation inside institutional investors' portfolio.

Hey Mooers!

In the Q2 2023 13F filing, the top 3 institutional investors, namely - The Vanguard Group, BlackRock and State Street Global Advisors, holds many tech stocks such as Microsoft ( $Microsoft(MSFT.US)$ ), Apple ( $Apple(AAPL.US)$ ), Alphabet ( $Alphabet-A(GOOGL.US)$ , $Alphabet-C(GOOG.US)$ ), Amazon ( $Amazon(AMZN.US)$ ), NVIDIA ( $NVIDIA(NVDA.US)$ ), Tesla ( $Tesla(TSLA.US)$ ) and Meta Platforms ( $Meta Platforms(META.US)$ ) in their top 10 holdings. Also, tech stocks occupied at least 15% of their portfolio, as shown below.

The Vanguard Group

BlackRock

State Street Global Advisors

Some of the reasons why institutional investors allocate a larger slice of their portfolio for tech stocks is because in the past 10 years, the tech sector has delivered an annualized return of at least 12%, compared to just over 6% for the S&P 500.

Also, many tech companies are in their early stages of growth and offer great opportunities for long-term capital appreciation. A good example is Amazon, in which if Mooers invested USD 10,000 in 1997, the stock would have worth USD 16,454,196 by Sep 2022. With so much money, Mooers can enjoy multiple roller coaster rides at Zadra!

Zadra, Energylandia in Zator, Poland

Besides, younger generations are more comfortable with technology and relies on them for their daily activities. This makes the tech stock more attractive to institutional investors and other investors like Mooers.

As for myself, apart from Money Market funds, such as Fullerton SGD Cash Fund and CSOP USD Money Market Fund in $Futu Holdings Ltd(FUTU.US)$ MooMoo Cash Plus, and other investment in non-tech sectors, I do have a few portfolios that have tech stocks in them.

These portfolios hold various financial instruments such as mutual funds, unit trusts, ETFs, bonds and stocks and the tech sector occupied from 20% to 90% in these portfolios.

I have not made any changes to these portfolios yet and intend to add more moolah to them only when the price become more attractive.

Also, just to share with Mooers two of the better-performing tech stock in my portfolios and they are General Dynamics ( $General Dynamics(GD.US)$ ) and JD.com ( $JD.com(JD.US)$ ).

A short summary about them and their target price in the next 12 months are as follows:

General Dynamics is one of the go-to vendors for the U.S. Army. It has one of the largest defense-focused IT & services businesses that provide stable revenue.

General Dynamics target price

JD.com is an e-commerce platform that provides cold chain delivery, frozen and chilled warehousing facilities and continues to leverage big data to provide smart logistics.

JD.com target price

These two tech stocks are likely to perform better if wars spread across multiple regions (*1, *2) and food logistics become critical due to food inflation, wars and profiteering.

Hmm... I wonder which institutional investors are followed by Mooers.

We have come to the end of today's topic. Remember to show your support by follow, like, share and comment on this post and as always, don't forget to DYODD (Do your own due diligence) when making any kind of investment.

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References:

*1: Ukraine war: Poland strengthens Belarus border over Wagner fears

*2: North Korea's Kim Jong Un dismisses top general, calls for war preparations

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