Categories: Stocks / ETFs

This High Conviction Tech ETF is Sending a Buy Signal to Close 2025


If you’re invested in the broad market, you almost certainly have exposure to the megacap tech firms that have defined the S&P 500 for over a year. While the megacap tech names have delivered strong performances for portfolios, they continue to represent some notable concentration risk. What might investors do with that tension entering 2026? A high conviction tech ETF can provide exposure to high performing innovative firms outside of that concentrated group, with one such strategy offering a buy signal to consider.

See more: VettaFi Symposium: Leading Asset Managers Talk Active Fixed Income ETFs

That fund, the Goldman Sachs Future Tech Leaders Equity ETF (GTEK), recently saw its price rise above its 50 and 200-day Simple Moving Averages (SMAs). Traditionally considered a buy signal, the tech ETF’s price of $40.21 sat above both its 50 and 200-day SMAs as of December 26th according to YCharts data. The fund’s price has increased without also entering “Overbought” territory, suggesting its momentum could be poised to continue.

High Conviction Tech ETF GTEK: A 2026 Option?

What has the fund done to reach that status and how might it perform in 2026 for wary investors? Charging 75 basis points (bps), GTEK offers an active approach compared to many tech ETFs’ index tracking. The fund’s managers look for those companies believed to be next-generation disruptors. 

Specifically, the active tech ETF embraces growth potential above all, excluding companies with more than $100 billion in market cap. It retains the flexibility to invest not only in info tech but also areas like healthcare and direct marketing retail. It applies fundamental metrics while screening for quality and growth, looking to factors like free cash flow, for example.

Together, that has helped GTEK return 24.4% YTD, beating its ETF Database Category average in that time. The high conviction tech ETF has also performed over longer periods, returning 24.7% over the last three years.

The strategy, then, could be produce a strong start to the new year. Its active focus on innovators outside the usual suspects could make it a strong add in the next few weeks. For those looking for a new fund to augment their existing tech allocations, GTEK may be one to consider. 

For more news, information, and strategy, visit the Future ETFs Content Hub.



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