Not wholly surprised by the recent drops; it’s been performing incredibly for the past year, and the last increase up to ~£14 seemed to me to be something of a ‘Biden boost’ that has slipped back as expectation has butted up against reality (short term). In the long term there’s potentially lots of growth in the sector still.
Obviously, positions are all relative; I’m not worried, and am considering if I should buy more in the dip (because it’s a long term hold). (And given most of my holdings were purchased at £6, I’m not in a position where I’m put off by seeing red.)
The funds has a breakdown of holdings, usually by % of weight. When a fund is rebalanced, an overweight holding (like plugpower) is sold off to reduce the % to a more reasonable target, and other holdings are topped up so that the %'s are balanced out for the fund.
It doesn’t mean all the holdings are held in equal weight though - some funds deliberately target higher %'s of a specific holding, or a specific country etc.
Since Plugpower is some 5% over compared to the other holdings, it seems likely they’ll rebalance it by reducing that holding, but we’ll see.
I am struggling to get my head fully around recent posts here. Are people really worried about why an ETF that has grown 92% in the last year is having a relatively small and so far short decline? Am I missing something? Relax.
In fairness, people get skittish, they don’t want to be holding something that turns out to be on a long decline, or for it to be a dramatic drop over a short period. There’s a few new investors here (myself included), so for some of us it is new territory and a learning experience.
Oh no I get it. And for context I wouldn’t consider myself at all an experienced investor. Just trying to add some balance and perspective to the topic. I see this as an opportunity to add to my holding at a discount, rather than anything to worry about. Not a concern if holding for the long term.
I will track the performance of any tend based fund I hold in the short/med term. 12 month Performance over the last few Weeks 135% 127% 114% and its now at 91% At what point would you be alarmed?
Well you only really have to look back to October to see the last time it was in a decline which was from 09/10 to 28/10. 19 days. The ETF only declined with almost no increase at any point during that period. It then rallied consistently for a couple of months going from ~£8.60 to over £12.
I bought the stock based on research and a complete belief this will grow in the long term, so to answer your question, honestly I don’t know at what point I might be alarmed. Maybe 50% I’ll have another look? Maybe not.
