Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) isn’t a household name for many people, but that doesn’t mean the company hasn’t has a massive impact on the daily lives of billions of people around the world. AMD is the second-largest supplier of microprocessors in the world, behind only Intel (INTC) in terms of market reach, and today is produces a wide range of microprocessor chips (for computers as well as mobile devices), motherboard chipsets, embedded processors and graphics processors for services, workstations, personal computers, mobile devices and more.
It’s also active in the market for graphics processes after acquiring ATI in 2006. Today it is number-two in graphics process unit sales after only Nvidia (NVDA). In 2018, AMD’s revenue was $6.48 billion and its market cap was about $45 billion.
Rationale
All that said, there are reasons for investors to think twice about investing directly in AMD. The most direct way to gain exposure to Advanced Micro Devices is to buy its listed shares, of course, but its participation in the extremely competitive computer hardware market might make many reconsider that approach. Companies like AMD must constantly innovate and find new ways to drive revenue as both technologies and consumer needs change and evolve. This can be extremely lucrative for those can stay ahead of the trends, but those fortunes can change quickly when a new technology or need is overlooked or claimed by a competitor. What’s more, as the number-two competitor in both of its primary markets – microprocessors (behind Intel) and graphics processing units (behind Nvidia) – Advanced Micro Devices is at the mercy of its larger competitors and is often forced to compete on price rather than its own innovations.
However, for investors interested in gaining exposure to the microprocessing sector, rather than buying AMD shares themselves should consider buying funds that provide exposure to Advanced Micro Devices and other similar firms. After all, the return drivers that will benefit AMD might also benefit other similar tech firms. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Advanced Micro Devices through these types of funds.
Investing in AMD
A search on Magnifi suggests that investors can gain access to AMD via a number of different funds and ETFs, including those shown below.
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This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Microsoft (MSFT)
When your cofounder and former CEO is regularly in the mix for richest person in the world, you know the company they founded is going to be a huge one, and Microsoft (MSFT) lives up to the billing. Founded by Gates and his business partner, Paul Allen, in Albuquerque, NM in 1975 as a software company focused on BASIC applications, Microsoft later moved to the Seattle suburbs and has become synonymous with personal computing and software ever since.
Today Microsoft sells computer software, consumer electronics, personal computers, cloud computing and a wide range of related products and surfaces, including the Microsoft Office software package, Windows operating system, Xbox video game consoles, and the Microsoft Surface table computer. It is the world’s largest software company by revenue, and also owns social networking site LinkedIn as well as online communications provider Skype.
As of 2019, Microsoft is the world’s most valuable company, with a market cap of $1.14 trillion and fiscal year 2019 revenues of $125 billion.
Rationale
The most direct way to gain exposure to Microsoft is to buy its listed shares. But investors have good reason to reconsider that approach given Microsoft’s participation in the extremely competitive and trend-focused personal computing market. Companies like Microsoft must constantly innovate and find new ways to drive revenue as both technologies and consumer needs change and evolve. This can be extremely lucrative for those can stay ahead of the trends, but those fortunes can change quickly when a new technology or need is overlooked or claimed by a competitor.
However, for investors interested in gaining exposure to the software sector, rather than buying MSFT shares themselves should consider buying funds that provide exposure to Microsoft and other similar firms. After all, the return drivers that will benefit MSFT might also benefit other similar tech firms. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Microsoft through these types of funds.
Investing in MSFT
A search on Magnifi suggests that investors can gain access to Microsoft via a number of different funds and ETFs, including those shown above.
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This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Visa (V)
Visa (V) is a financial services company that oversees a worldwide network of electronic fund transfers, through its Visa-branded credit cards, debit cards and prepaid spending cards. The company is an intermediary, working with banks and other financial institutions to offer Visa-branded financial services products for their customers. It was created in 1958 as a Bank of America spinoff, which first introduced the idea of an all-purpose credit card that could be used at a variety of merchants, rather than the revolving credit accounts that were popular at the time but limited in their use.
Visa’s products generally break down into three categories: debit cards, credit cards and prepaid cards. It also operates the Plus network of ATM machines as well as the Interlink EFTPOS point-of-sale network. In addition, Visa provides direct commercial payment solutions for a range of B2B users and, in 2014, partnered with Apple to support the iPhone maker’s Apple Wallet spending feature.
Visa operated the world’s largest card payments network until 2015, when it was surpassed by UnionPay, a Chinese credit card processor. Today the company has operations worldwide and processes more than 100 billion transactions every year. As of 2018, its revenues were more than $20 billion on a $280 billion market cap.
Rationale
The most direct way to gain exposure to Visa is to buy its listed shares. But investors have good reason to reconsider that approach given Visa’s exposure to the global financial system as a whole. As the second-largest financial services network operator in the world, V grows alongside overall global growth. But, when that consumer spending slows, so does Visa’s long-term growth plans.
However, for investors interested in gaining exposure to the financial services sector, rather than buying V shares themselves should consider buying funds that provide exposure to Visa and other similar firms. After all, the return drivers that will benefit V might also benefit other similar firms in financial services that are better diversified. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Visa through these types of funds.
Investing in V
A search on Magnifi suggests that investors can gain access to Visa via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
AT&T (T)
Innovation is an American tradition, and few modern companies are as directly tied to that spirit as AT&T (T), the multinational holding company that can trace its roots back to the Bell Telephone Company, founded by telephone inventor Alexander Graham Bell in 1877. Today it is the world’s largest telecommunications company, the largest mobile services provider and the largest network operator in the U.S.
AT&T currently operates DirecTV, AT&T Mexico and a long list of other subsidiaries including Ameritech, BellSouth, Pacific Telesis and SBC Communications. It is also the parent company of mass media conglomerate WarnerMedia.
AT&T reported $170 billion in revenue in 2018. For the second quarter of 2019, it generated $35 billion from its communications business, accounting for roughly 80% of revenue. The company employs more than 250,000 and operates worldwide, including voice service in 225 countries and data service in 210 countries.
Rationale
The most direct way to gain exposure to AT&T is to buy its listed shares. But investors have good reason to reconsider that approach given AT&T’s long-term growth prospects and its current price. Much of T’s revenue is driven by landline service, which is dying out around the world. Although it is expanding into mobile communications service and other offerings, it is still tied to a fading technology.
However, for investors interested in gaining exposure to the communications sector, rather than buying T shares themselves should consider buying funds that provide exposure to AT&T and other similar firms. After all, the return drivers that will benefit T might also benefit other similar firms in communications that are better diversified. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like T through these types of funds.
Investing in T
A search on Magnifi suggests that investors can gain access to AT&T via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Alphabet (GOOG)
You know you’re one of the largest, most successful companies in the world when you can change your name and still not miss a beat in terms of investor interest. But that’s exactly what the conglomerate Alphabet (GOOG) did in 2015 when it was created as part of Google’s corporate restructure. Today, Alphabet is the parent company of Google as well as a number of its subsidiaries. The idea was to create a structure with “greater autonomy” and allow Google to expand into other businesses beyond simply internet services.
In addition to Google, Alphabet’s subsidiaries include Calico, DeepMind, GV, CapitalG, X, Google Fiber, Jigsaw, Makani, Sidewalk Labs, Verily, Waymo, Wing and Loon. It also oversees former Google projects such as YouTube, the Android mobile operating system and more.
Alphabet reported more than $110 billion in total revenue in 2017, 86% of which comes from advertising via Adsense and Google’s AdWords products, 53% of which operates outside of the U.S.
Rationale
The most direct way to gain exposure to Alphabet is to buy its listed shares. But investors have good reason to reconsider that approach given GOOG’s long-term growth prospects and its current price. What was once a high-growth internet startup is now a well-established digital enterprise, and the creation of Alphabet as the Google holding company only solidified that fact. GOOG itself is no longer a growth holding.
However, for investors interested in gaining exposure to the internet sector, rather than buying GOOG shares themselves should consider buying funds that provide exposure to Alphabet and other and other similar firms. After all, the return drivers that will benefit GOOG might also benefit other similar firms in internet services. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like GOOG through these types of funds.
Investing in GOOG
A search on Magnifi suggests that investors can gain access to Alphabet via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Citicorp (C)
One of the largest financial services companies in the world, Citicorp (C) is also the parent company of one of the oldest banks in the U.S., Citibank, which can trace its roots back to the City Bank of New York, founded in 1812. Citibank today has more than 2,600 branch locations in 19 countries, although most of its operations are focused in the United States and Mexico.
Formed by the merge of Citicorp and Travelers Group in 1998, Citicorp’s business can today be split in two – investment banking and financial services, both tied to each of the original partner companies. Citicorp is the third largest bank in the U.S. and is considered a “systemically important financial institution” by U.S. regulators, placing it on the “too big to fail” list, leading to its government bailout in 2009.
As of 2019, Citi has more than 200 million customer accounts and offices in more than 160 countries. Its revenues for 2018 totaled more than $72 billion.
Rationale
As a Big 4 financial institution, naturally the simplest way to gain exposure to Citicorp is to buy its listed shares. But given Citi’s rocky history in recent years, that can open investors up to excess risk. Citicorp was the recipient of more than $300 billion in bailout funds in the wake of the 2008 financial crisis and, although operations have stabilized since then, its business is largely left to the whims of the global financial system. Given its size, there is little Citigroup can do to outperform its peers directly.
A solution that can dampen some of that volatility is to buy funds that provide exposure to Citicorp and other similar firms, rather than C shares themselves. After all, the return drivers that will benefit Citi might also benefit other similar firms in financial services. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like C through these types of funds.
Investing in C
A search on Magnifi suggests that investors can gain access to C via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Lululemon (LULU)
Who knew that selling yoga pants could be so lucrative? Chip Wilson, the founder of Canadian athleticwear retailer Lululemon Athleta (LULU) certainly did when he started the company out of his Vancouver apartment in 1998. In part, LULU arrived at just the right time. In the early 2000s, yoga was on an upswing, and between 2012 and 2016 the number of Americans doing yoga grew by 50%. Today, 1/3 of all Americans has tried it at least one, and the population of over-50 practitioners has tripled since 2015.
Lululemon designs and sells a wide variety of athletic wear, having expanded beyond its core product of yoga pants. Today the inventory in its 460 stores includes tops, casual pants, shorts, sweaters, jackets, undergarments, accessories, yoga mats, water bottles, shoes and more.
In 2018, Lululemon reported revenue of $3.29 billion, up from just $358 million a decade earlier.
Rationale
A direct way to gain exposure to Lululemon is to buy the listed shares. But that can be a risky approach, given LULU’s focus on the consumer market. It’s fair to believe that Chip Wilson caught lightning in a bottle with the explosive growth of the yoga market shortly after he launched the company, but Lululemon’s breakneck growth since then has largely been predicated on new store openings and reaching out to new potential customers. However, fashion trends can change rapidly, and the population of customers who have not yet tried yoga or purchased from Lululemon is shrinking, reducing its future growth potential.
A solution that can dampen some of that volatility is to buy funds that provide exposure to Lululemon and other similar firms, rather than LULU shares themselves. After all, the return drivers that will benefit Lululemon might also benefit other similar firms in sporting goods, athleticwear, and footwear. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like LULU through these types of funds.
Investing in LULU
A search on Magnifi suggests that investors can gain access to LULU via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Facebook (FB)
Founded in a Harvard dorm room in 2004, Facebook (FB) has in the intervening years become one of the major companies of our time. Far from the first social network on the internet, Facebook has however established itself as the most successful, boasting more than 2.4 billion active users worldwide and 85 offices spread across 35 countries.
As of 2019, Facebook has a market cap of more than $460 billion, and the company reported total revenue of nearly $56 billion in 2018, mostly generated from online advertising. That figure was up 37% from the $40 billion in revenue the company reported in 2017. The company has been actively acquiring other companies since its founding and currently owns Instagram, WhatsApp, Occulus VR, FriendFeed and adtech company LiveRail among its total 79 businesses.
Facebook’s 2012 IPO was the largest tech IPO in U.S. history, with more than 421 million shares priced at $38 per share raising roughly $16 billion.
Rationale
A direct way to gain exposure to Facebook is to buy the listed shares. But, despite its growth, Facebook remains a volatile and uncertain company. It is still only 15 years old, so it continues to experience growing pains in its new industry. What’s more, potential government regulation of the platform could slow its growth going forward.
A solution that can dampen some of that volatility is to buy funds that provide exposure to Facebook and other similar firms, rather than FB shares themselves. After all, the return drivers that will benefit Facebook might also benefit other similar firms in online advertising, digital media, and hardware. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Facebook through these types of funds.
Investing in FB
A search on Magnifi suggests that investors can gain access to Facebook via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Apple (AAPL)
Apple (AAPL) is a Silicon Valley legend. Literally founded in a garage – in this case, belonging to Steve Jobs’ parents in Los Altos – Apple got its start in 1976 when cofounders Jobs and Steve Wozniak began building the very first Apple personal computers by hand, shipping them in handmade wooden cases. Always the showman, Jobs later said that the company’s name was a nod to a “fruitarian” diet he was on at the time. He had just come back from an apple farm, and thought the name sounded “fun, spirited and not intimidating.”
That was then.
Today Apple produces far more than just Apple computers, including such products as the iPhone, Apple Watch, Apple TV, iPad, AirPods and much more, including a wide variety of Macbook laptops and Mac desktops.
Apple is among the world’s most valuable companies, with a net worth of more than $1 trillion and annual revenues of $265 billion in 2018. It is the world’s largest technology company by revenue and employs 123,000 full-time employees and maintained 504 retail stores in 24 countries as of 2018. There are currently more than 1.3 billion Apple products in use worldwide, ranking it as the world’s most valuable brand.
Rationale
A direct way to gain exposure to Apple is to buy the listed shares. But that can be a risky approach, given Apple’s focus on the consumer market. Consumers can be finicky, and what sells today (like iPhones) may not sell as strongly tomorrow or next year. As such, Apple is forced to constantly innovate in hopes of finding the next big tech trend. The company has done this successfully for more than 40 years, but the innovation cycle is accelerating.
A solution that can dampen some of that volatility is to buy funds that provide exposure to Apple and other similar firms, rather than AAPL shares themselves. After all, the return drivers that will benefit Apple might also benefit other similar firms in consumer electronics, computer hardware and personal entertainment. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Apple through these types of funds.
Investing in AAPL
A search on Magnifi suggests that investors can gain access to Apple via a number of different funds and ETFs, including those shown below.
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a 14-day free trial of Magnifi Pro+
Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Caterpillar (CAT)
The economic bellwether that no one ever thinks about, Caterpillar (CAT) is a company that designs, develops, engineers, manufactures, markets and sells heavy machinery and engines, including construction equipment, financial products and insurance worldwide. It is the world’s largest construction equipment manufacturer. As such, its success and failure are seen as a preview of what’s to come next for the economy at large.
The company was founded by the 1925 merger of the Holt Manufacturing Company and the C. L. Best Tractor Company, both of which were leaders in the field of steam equipment. Following the merger, CAT consolidated its product lines, eventually expanding into military vehicles and hardware sold to the U.S. Department of Defense in World War II.
Today, Caterpillar produces machines ranging from tractors to hydraulic excavators, backhoe loaders, motor graders, off-highway trucks, wheel loaders, agricultural tractors, locomotives and more. Its products are used in the construction, road-building, mining, forestry, energy, transportation and material-handling industries.
Rationale
A direct way to gain exposure to Caterpillar is to buy the listed shares. But that can be a risky approach, given Caterpillar’s wide business interests. It’s no accident that fluctuations in CAT’s stock price are seen as an economic bellwether – a slowdown in construction spending often portends a broader economic slowdown. That ties Caterpillar closely to market forces that are outside of its control.
A solution that can dampen some of that volatility is to buy funds that provide exposure to Caterpillar and other similar firms, rather than CAT shares themselves. After all, the return drivers that will benefit Caterpillar might also benefit other similar firms in construction, manufacturing, and heavy industry. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like CAT through these types of funds.
Investing in CAT
A search on Magnifi suggests that investors can gain access to CAT via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]