Considering ways to update your tech allocation? Technology companies remain a key part of investors’ equities portfolios, but challenges continue to loom. Supply chains could face headwinds from tariffs, while concentration risk remains a problem. An active tech ETF approach could provide a solution, adding flexibility and deeper, fundamentals-driven scrutiny of investments. The active tech ETF TTEQ, for example, has performed well in the middle part of the year and could be poised for more.
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The T. Rowe Price Technology ETF (TTEQ), managed by Dom Rizzo, invests in tech firms around the world based on fundamental research. Its approach emphasizes stock valuation, each firm’s business prospects, and potential for share price appreciation. Not only does it invest in bigger, more established names, it also looks to smaller, emerging companies offering innovative tech.
That has helped the active tech ETF return 26% in the last three months per YCharts data. That outperformed both the fund’s ETF Database Category and Factset Segment averages. The fund’s price, as well, sits above its 50-day Simple Moving Average, suggesting rising momentum. The T. Rowe Price Technology ETF (TTEQ) charges a 63 basis point (bps) fee for its approach.
Specifically, TTEQ holds a few names outside of the megacap tech space that can intrigue. For example, the fund invests in Entergis, Inc. (ENTG) according to T. Rowe Price data. The company supplies purification solutions and advanced materials. ENTG provides those services largely to semiconductor supply chains, per YCharts data. Over the last month, ENTG has seen seen its price spike after a tougher start to the year. The firm has returned 11.5% in that time.
Looking ahead, TTEQ’s ability to deeply scrutinize companies may play a particularly potent role in the tech space. The active ETF approach combines ETFs’ tax friendliness with active adaptability, offering a strong option into which investors can transition their passive tech equities.
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