Sell Signal for FRT; Started VGT

Sell: Federal Realty Investment Trust

On 3rd June 2020 our systems created a sell signal for Federal Realty Investment Trust (FRT). We started this position in 2019. In March and May of this year we increased our position after prices dropped and our systems created buy signals at USD 74.78 and then again USD 67.95 respectively.

This week a sell signal was create and we reduced our position slightly at an average price of USD 93.5745 per share. Based on an average price of USD 71.3645 for the buys in March and May, this represents a gain of 31.12%. Here, too, we are quite satisfied with this result.

We continue to have a long position in FRT. While we see this as long-term investment, we may increase or decrease our position based on the signals created by our systems.

Buy: Vanguard Information Tech ETF

Also, on 3rd June 2020, we decided to increase our exposure in the technology sector. We started a position in this sector in May with "SPDR Select Sector Fund - Technology" (XLK). Our post back then already explains some of the reasons for the step back then. With adding the ETF "Vanguard Information Techology" (VGT) to our portfolio we have increased our technology holdings further. The technology sector currently represents about 8% of our US portfolio.

Both, XLK and VGT, have a quite different structure.

XLK has about 86% of assets in technology plus a further 12% in financial services. The remainder being about 2% in industrials. In total XLK consists of about 71 stock holdings.

In contrast VGT has 88% of assets in technology plus a further 10% in financial servicess. The remaining 2% are in industrials. The main difference is that VGT has 316 holdings which reduces the stock specific risks even further.

The past performance of the two ETF's is in the same ballpark. Both funds pay cash distributions typically once per quarter, so both are generating some cash (1% to 2% per year).

We started the VGT position with an average price of USD 267.15.

Disclaimer

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