Active Tech ETF GTEK Beats Tech ETF Average By 20%

Active Tech ETF GTEK Beats Tech ETF Average By 20%

Looking for a way to energize your portfolio while adding greater flexibility? Tech equities continue to play a starring role for numerous portfolios, but markets are broadening. Valuations are high, and pressure is growing on the broader economy. That shifting outlook may invite investors to consider the active tech ETF space. The Goldman Sachs Future Tech Leaders Equity ETF (GTEK) stands out as a compelling option therein, beating its category average over the past year.

Key Takeaways: GTEK has outperformed the ETF Database Tech Equities category average over the last year, returning 47% over the period. The category average returned 26% as of September 11th over the same 12-month period.

With a cap on investments over $100 billion in AUM, the fund can find rising stars as it looks for upside. GTEK charges a 75 basis point fee to actively invest in innovators and disruptors. The active tech ETF represents a strong option right now thanks to its particular approach — excluding companies with a market cap larger than $100 billion. By filtering out the huge megacaps already dominating markets, the fund opens up opportunities to capture rising stars. Specifically, GTEK uses an active, bottom-up approach to identify emerging tech and disruptors, emphasizing growth potential. What’s more, the strategy’s active remit empowers its managers to invest not only in traditional tech but also to target innovative firms in communication services, healthcare, and beyond. GTEK’s managers use fundamental analysis to assess stocks for value and growth metrics. This disciplined strategy has helped the active tech ETF deliver strong performance over recent periods. According to ETF Database data, GTEK has returned 47% over the last 12 months. That outpaces the ETF Database Technology Equities category average of 26.2% (as of September 11) by roughly 20 percentage points over the same period.

That standout performance makes GTEK a compelling fund to watch as market conditions grow more complicated. Yields are rising, and stubborn inflation may see the Fed raise rates as well, adding further pressure. GTEK presents a timely option for investors seeking access to tech growth in the age of AI.