General Description

The Tech Elite basket comprises 10 of the largest companies, by market capitalization, listed on the Nasdaq 100 index. The basket provides exposure to Apple, Microsoft, Google, Nvidia, Netflix, Tesla, Broadcom, Meta, Amazon, and Costco, across sectors, including software, semiconductors, diversified retailers, consumer staples, and consumer digital services. The mega-caps in the index, which predominantly consist of tech companies, are well-positioned for long-term growth as the AI boom unfolds. Moreover, companies like Amazon, Google, and Microsoft are investing billions in AI infrastructure, signaling strong future growth potential. These firms also stand out for their operational efficiency, exceptional management, and robust financials, consistently maintaining margins and strong cash flows. A cap of 15% and a floor of 5% are used to prevent concentration risk. The baskets rationale is based on a 16-year historical backtest. Over the course of this analysis, the basket outperformed the Nasdaq Index. For perspective: the Nasdaq 100 gave an annualized return of 20.7%, while our basket achieved a 23.7% return.

*Disclaimer: The basket may contain some non-tech names, as these companies may benefit from the AI momentum.