Vanguard Information Technology ETF (VGT-N)

This is riding a monster trend and now you need to focus on managing your potential downside. Technology is non-mean reverting sector which is great, but the price is at very high valuations now. You may consider setting stops, but would continue to hold. Remember this sector dropped 90% on a sell off back in 2000.

Generally speaking, tech valuations are high. It's a low-fee ETF, but this a volatile sector ETF, prone to wild swings. Be careful here.

Just hit an all-time high today. He loves the tech space, but prefers buying the individual names as a general investing strategy. This ETF is fine and will do well going forward. Caution: the tech trade may become volatile and it's already getting crowded. VGT is all U.S. holdings, so it's better to look overseas, particularly Asia.

Technology is interesting in the sense that we don’t have the same bubble we had in the late 1990s, because the values are not crazy. Tech stocks are trading on pretty reasonable P/E ratios. Probably a good portfolio filler, but if you want higher returns, he would look elsewhere.

This has all the big names. What’s not to like? It is the best sector in the S&P 500 combined with a 10-basis point management fee. Technology is delivering incredible earnings growth, so you are going to have a high P/E ratio. However, in a larger context, this P/E ratio is not crazy for what you are getting. He likes it.