The tech ETF investing landscape is a crucial one for investors right now. Few want to give up on their tech investments, but many are concerned about concentration risk from their largest tech allocations. Active ETFs provide the specialized tech exposure investors crave for reaching innovative, high-growth firms, while offering the fundamental depth and agility necessary to navigate shifting market conditions
Key Takeaways:
- GTEK has outperformed its ETF Database Category average over several time periods.
- The fund’s active approach to tech could make it a worthy option as a satellite addition.
- It avoids the big megacap tech names driving concentration risk concerns.
The Goldman Sachs Future Tech Leaders Equity ETF (GTEK) has been a standout in the space so far this year. With 2026 somehow almost halfway done, GTEK has returned just under 26% YTD. It has far outpaced the ETF Database Technology Equities Category average of 8.5% for the same time frame.
What’s more, GTEK has also seen strong performance over longer time frames. Charging a 75 basis point fee, the strategy has returned 65.5% over the last twelve months and has seen a 25.3% return just in the last month. Outperforming its category average across all periods, the fund’s healthy track record demonstrates its momentum.
The fund has also seen its price rise noticeably above both its 50 and 200-day Simple Moving Averages (SMA). That traditionally indicates momentum for a security and a potential buy opportunity. How, then, has the fund invested to produce those returns?
See more: Investors Prefer Downside Protection ETFs to Inverse, Leveraged
GTEK, which will celebrate its fifth anniversary this year, actively invests in tech firms with the potential to drive global innovation. The active tech ETF uses a bottom-up approach to develop a high-conviction set of holdings. Its managers emphasize growth and, crucially, exclude the megacap tech names that have dominated the headlines. Specifically, it invests in global firms with less than $100 billion in market cap.
Applying fundamental metrics to screen for quality and growth, it also retains the flexibility to invest in tech-focused companies in segments like healthcare and communications. Overall, GTEK’s combination of adaptability, innovation focus, and growth could make the active tech ETF a strong option to deepen investors’ tech allocations this year.
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