Tech stocks had a bit of a wobble this week — nothing dramatic, just a few percent down across the board. When that happens, I try to remember one thing: stocks on sale are good for buyers.
I put £300 into the Invesco EQQQ Nasdaq-100 UCITS ETF. This is my tech-heavy holding — it tracks the 100 largest non-financial companies on the Nasdaq. Think Apple, Microsoft, Nvidia, Amazon, Meta, Alphabet, Tesla. The fees are 0.30% which is higher than my S&P 500 ETF but reasonable for a more concentrated fund.
Why buy when tech is dipping? Not because I think I'm clever or because I know something the market doesn't. I don't. I bought because my regular investing schedule said it was time to invest, and the Nasdaq allocation had drifted below my target. That's it. No market timing, no clever analysis. Just sticking to the plan.
I also spent half an hour this week rebalancing my Trading 212 Pie. The S&P 500 allocation had crept up to nearly 45% of my portfolio — higher than I'm comfortable with. So I adjusted the auto-invest percentages to direct more new money into the global tracker and the Nasdaq ETF for the next few months.
Rebalancing is the kind of boring maintenance that nobody makes YouTube videos about, but it matters. It forces you to sell what's gone up and buy what's gone down — the exact opposite of what your emotions tell you to do. I don't sell existing holdings to rebalance (that would trigger capital gains tax complications in my GIA), but I direct new money to the underweight positions. It achieves the same thing, just more slowly.
So this week: £300 into Nasdaq 100, rebalanced the pie, and didn't panic. A good week.
As always: this is what I did. Not what you should do. Do your own research. All investing carries risk. The Nasdaq 100 is concentrated in technology stocks and can be more volatile than broader market indices.