Active ETFs have become a key part of the investing landscape for retail investors and institutional investors, alike. Among all the categories where active can stand out, then, where might those investors get the most bang for their investing buck? Technology may provide a particularly potent area for active investing given how many investors already have mega-cap exposure. A deeply focused active tech ETF like GTEK could be one to watch therein, having outperformed notable tech ETF VGT on a YTD basis.
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The Goldman Sachs Future Tech Leaders Equity ETF (GTEK) charges a 75 basis point fee for a high conviction tech approach. The fund actively invests in up-and-coming tech companies believed to be driving global innovation. Its target firms focus on disruptive tech that can upend existing hierarchies or potentially open up new avenues for investment. The active tech ETF’s bottom-up portfolio construction approach helps it find those companies best poised to deliver.
Active Tech ETF GTEK to End 2025
Together, that approach has helped GTEK return 19% YTD, beating other notable tech funds like VGT, the Vanguard Information Technology Index Fund. VGT has returned 15.9% in that time. What’s more, GTEK has also outperformed both its ETF Database Category and FactSet Segment averages YTD. The two averages came in at 18.1% and 16.5% YTD, respectively.
What kind of companies does GTEK hold, then, as part of its strategy? For example, the fund invests in Cadence Design Systems (CDNS). CDNS has returned 18% YTD, according to YCharts data. It provides a 21.7% return on equity, as well. The company focuses on the development of integrated circuits and electronic devices.
The active tech ETF also invests in Snowflake, Inc. (SNOW), which has returned its investors 45.4% YTD, as well. SNOW develops cloud data warehousing software with the added benefit of providing software to analyze those huge reams of data.
Looking ahead, firms like those could continue to help the active tech ETF outperform more mainstream tech index funds. Its high conviction focus could present an appealing add to existing portfolios especially amid concentration risk.
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