The Goldman Sachs Future Tech ETF (GTEK ) has displayed robust returns so far this year. The strategy has returned 30.9% YTD according to ETF Database data. Over the last 12 months, the fund has done even better, returning 72.3% in that time. How, then, has the active tech ETF delivered those performances? The stocks it targets may explain.
Key Takeaways:
- Active tech ETF exposure can help investors get adaptability and targeted investment into their portfolios.
- As concentration risk rises, adding smaller innovative tech firms can appeal and boost performance.
- GTEK has significantly outperformed and could make for a strong satellite option.
The strategy actively invests in firms expected to drive tech innovation. It uses an active, bottom-up approach to build a high conviction list of holdings. Its managers focus on growth potential and explicitly remove the megacap tech names that dominate, dropping firms with $100 billion in market cap or more.
With its active approach, it can adapt and emphasize innovators across sectors like communications and healthcare. Finally, the fund’s management uses fundamental attributes to screen for growth and quality.
See more: Active Tech ETF GTEK Up 25% YTD
For example, it invests in Delta Electronics, Inc. (2308), a Taiwanese manufacturing firm. It has returned a remarkable 117% YTD, working as part of the data center supply chain. Its industrial computer fans can help cool the massive walls of compute generators.
Another is Marvell Technology, Inc. (MRVL). MRVL has returned 84.5% YTD, developing semiconductors. The firm is based in the U.S., and is also benefitting for that big AI push without being an AI hyperscaler, itself.
Finally, investors can also look to Infineon Technologies AG (IFNNY) which has returned 50.7% YTD. IFNNY also focuses on semiconductors, as well as other tech, like sensors, power management, and more.
Together, stocks like those have helped lift GTEK to stronger performance. What’s more, especially as concentration risk looms from the megacap tech names, an adaptable, smaller active tech ETF can appeal. For those looking for active tech ETF exposure, GTEK may merit a closer look.
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