IT Sector investing

Don't get me wrong, XIT is a solid ETF. If you're not looking to pick individual tech plays and instead want exposure to the whole sector, I believe it's the way to go.

However, just note this. Shopify makes up 30% of the ETF, and Constellation Software 24%. This is 54% of an ETF allocated to two companies.

So, although I think it's a very solid ETF, a lot of investors think they're getting more diversity than they really are with a purchase in XIT. In fact, its top 10 holdings accounts for nearly 99% of assets. Stocks like Docebo, Absolute Software and Evertz Technologies make up less than 0.5% of the portfolio.

a purchase of XIT is a very heavy reliance on Shopify and Constellation, and is a big bet on its top 4 holdings, which make up nearly 80% of the portfolio Shopify, Constellation, Opentext and GIB.A.

Which by the way, I'm not saying is a bad thing at all. I just like to bring this to investors attentions because as I said, some feel that they're diversifying across the whole sector when they buy this ETF.