FTNW
FTE Networks Inc
stock NYSEAMERICAN

>As far as APPL vs FTNW (aka Joe’s Networking Shop) do you really get any diversification value for owning essentially 0% of FTNW?
When you market cap weight, you own the same percentage of every company.

Consumer stapes and consumer discretionary behave differently and encompass different product types…thats why they are two different sectors…
As far as APPL vs FTNW (aka Joe’s Networking Shop) do you really get any diversification value for owning essentially 0% of FTNW?
No.
Folks think of VTI/VT as owning the whole haystack.
Well maybe…but some of the “hay” is sequoia sized trunks and some are microscopically thin strands of fiber invisible to the naked eye.
And finally…tech is only the largest sector based on cap weighting…not revenue:
https://axiomalpha.com/biggest-industry-sectors-in-the-usa-by-revenue-and-number-of-businesses/
Information is 4.2% of the market by revenue.
And Walmart has $160B in revenue vs Apple’s $117B in revenue. Saudi Aramco had the largest pre-tax income in the world.
https://www.statista.com/statistics/269857/most-profitable-companies-worldwide/
It’s 0.04% of VT.
Is it a great company? Is it even a company with the minuscule free float and large private ownership? Meh. But it is a profitable one.
Is a passive index based on 10 year profitability a better or worse index for passive buy and hold folks vs a market cap index based on what folks with a 10 month average holding period are buying even with a higher ER than VT?

>As far as APPL vs FTNW (aka Joe’s Networking Shop) do you really get any diversification value for owning essentially 0% of FTNW?
When you market cap weight, you own the same percentage of every company.

Consumer stapes and consumer discretionary behave differently and encompass different product types…thats why they are two different sectors…
As far as APPL vs FTNW (aka Joe’s Networking Shop) do you really get any diversification value for owning essentially 0% of FTNW?
No.
Folks think of VTI/VT as owning the whole haystack.
Well maybe…but some of the “hay” is sequoia sized trunks and some are microscopically thin strands of fiber invisible to the naked eye.
And finally…tech is only the largest sector based on cap weighting…not revenue:
https://axiomalpha.com/biggest-industry-sectors-in-the-usa-by-revenue-and-number-of-businesses/
Information is 4.2% of the market by revenue.
And Walmart has $160B in revenue vs Apple’s $117B in revenue. Saudi Aramco had the largest pre-tax income in the world.
https://www.statista.com/statistics/269857/most-profitable-companies-worldwide/
It’s 0.04% of VT.
Is it a great company? Is it even a company with the minuscule free float and large private ownership? Meh. But it is a profitable one.
Is a passive index based on 10 year profitability a better or worse index for passive buy and hold folks vs a market cap index based on what folks with a 10 month average holding period are buying even with a higher ER than VT?