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AAPL & MSFT Outside the Top 10: How Tech ETF TTEQ Wins

BY | ETF Database
6:12 am ET 10/15/26 | 13 VIEWS
At a time when the top 10 stocks in the S&P 500 make up 35 to 40% of the index by weight, and many of those names are in tech, it’s fair for investors to ask how much more tech their portfolios can hold. Still, tech stocks include key innovators that offer major upside and potential returns for portfolios. Active ETFs offer a solution. The T. Rowe Price Technology ETF (TTEQ ) provides a key tech ETF example, underweighting two big names and chasing rising innovators.Key Takeaways: With concentration risk rising, active ETFs like TTEQ can help diversify while pursuing returns. TTEQ has outperformed its benchmark while keeping big names like MSFT and AAPL outside its top 10. The fund has returned 40.4% YTD, according to ETF Database data. TTEQ charges a competitive 63 basis point fee to actively invest in a blend of innovative and well-established technology companies. It has some key advantages over index strategies tackling tech, outside of mitigating concentration risk. Where indexes like the S&P 500 Information Technology Sector index follow GICS Sector rules, losing out on names like Meta (META) and Alphabet (GOOGL), TTEQ has the freedom to invest across such sector boundaries. That has allowed it to combine exposure to META and semiconductor stars like Micron (MU), up 228% YTD. It has also empowered TTEQ to invest in private names that have yet to IPO. That includes not only OpenAI, but also Anthropic, frontier AI companies with huge potential. The fund’s performance owes to more than just that active flexibility. Its managers can also, of course, zig where those indices zag. Where the S&P 500 Information Tech Sector index has Microsoft (MSFT) at a notable 14.4% weight, TTEQ does not. Both MSFT and Apple (AAPL) are outside TTEQ’s top stocks by weight. With that, the fund has outperformed its benchmark, the MSCI All Country World Index (ACWI), over multiple periods. TTEQ has returned 40.4% YTD and 38.4% over the last 12 months. That has beaten ACWI in those time periods, with that index returning 15.1% and 18.9% respectively. Which stocks take the place of AAPL and MSFT? TTEQ weights Advanced Micro Devices AMD, for example, more heavily than the S&P 500 Info Tech index. It falls only behind Nvidia (NVDA) in weighting. AMD’s 176% return YTD has helped TTEQ produce that robust YTD return. See more: T. Rowe Price Ultra Short-Term Bond ETF TBUX Up Almost $1 Billion YTD TTEQ leans on T. Rowe Price’s fundamental research capabilities to pursue that outperformance. Managed by Dom Rizzo, the fund is now just a year away from its key three-year milestone. Together, it presents a strong candidate for those wanting an active tech ETF that limits concentration risk while pursuing serious returns. For more news, information, and analysis, visit our Active ETF Content Hub.

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