£1,000 buys 198 shares in this FTSE 100 investment trust that’s returned 25% a year for the last 10 years
Over the last 10 calendar years, the FTSE 100 index has returned a little under 9% a year when dividends are included. Thatâs not a bad return.
However, investors could have done far better with an investment trust thatâs a constituent of the index. Over the last decade, this particular product has returned about 25% per year.
A brilliant long-term investment
The one Iâm referring to is the Polar Capital Technology Trust (LSE: PCT). This is a tech stock-focused product run by London-based investment manager firm Polar Capital.
A decade ago, it was trading for around 55p. Today however, it has a share price of around 503p.
That means anyone who bought 10 years ago and held for the long term has made around nine times their money. Thatâs an absolutely brilliant return â it could have turned a £5,000 investment into around £45,000.
Worth a look in 2026?
Is this trust worth considering today? I think so.
The table below shows the top 10 holdings at the end of 2025. What I like about that list is that thereâs a lot of exposure to chip (Nvidia, Broadcom, AMD, TSMC) and chip manufacturing equipment stocks (Lam Research, KLA).
I reckon these stocks will do well in the years ahead. They should benefit as companies like Amazon, Alphabet, and Meta spend heavily on AI infrastructure and the world becomes more digital.
Digging deeper into the holdings, there were some really interesting names in the portfolio at the end of October (the latest full portfolio holdings data available). Some examples here include taser maker Axon Enterprise, AI powerhouse Palantir, data centre cooling specialist Vertiv, and fast-growing investment platform Robinhood Markets.
Of course, thereâs a chance that these names have been sold since the end of October. But it shows you the types of innovative companies in the portfolio.
One other thing to like about this trust is that it currently trades at a near-10% discount to its net asset value (NAV). In other words, anyone buying now is getting access to a basket of high-quality tech stocks at a significant discount.
Risks and fees
Of course, there are plenty of risks to consider with this product. One is the sector focus.
While the portfolio is well diversified at stock level, itâs not very diversified at sector level (although there are a few stocks in the portfolio that arenât pure tech stocks). So, if the tech sector was to have a meltdown (or even just go nowhere), this trust would most likely underperform.
The significant exposure to chips is another risk to consider. This area of technology has historically been volatile.
In terms of fees, ongoing charges are 0.77%. Thatâs relatively high.
There are some other products in this space that have lower fees. An example here is the iShares S&P 500 Information Technology Sector UCITS ETF (its fees are just 0.15%).
Overall though, I see quite a bit of appeal in this product. I believe itâs worth considering for a diversified portfolio.
The post £1,000 buys 198 shares in this FTSE 100 investment trust thatâs returned 25% a year for the last 10 years appeared first on The Motley Fool UK.
Should you invest £1,000 in Polar Capital Technology Trust plc right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Polar Capital Technology Trust plc made the list?
More reading
- Can Rio Tinto shares climb further after top-end cash payout for 2025?
- Here’s how much £5,000 invested in NatWest shares 2 years ago is now worth
- These UK shares could pay you £750 in monthly second income
- 2 top-quality growth stocks trading at decade-low valuations
- 3 red-hot FTSE 250 defence stocks to consider over BAE Systems
Edward Sheldon has positions in Amazon, Alphabet, Lam Research, Palantir, Nvidia, Robinhood Markets, and KLA Corp. The Motley Fool UK has recommended Advanced Micro Devices, Alphabet, Amazon, Axon Enterprise, Lam Research, Meta Platforms, Nvidia, Polar Capital Plc, and Taiwan Semiconductor Manufacturing. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
