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Get Cutting Edge Tech Stocks in Active ETF LOUP

Goldman Sachs Asset Management (GSAM) recently expanded its ETF lineup via the acquisition of Innovator ETFs. In addition to Innovator’s notable suite of buffer ETFs, the deal also brings exciting active strategies like the Innovator Deepwater Frontier Tech ETF (LOUP ), which focuses on cutting-edge tech stocks.Key Takeaways: The active tech stocks ETF LOUP has returned 28.4% over the last 12 months without hyperscalers. Over that same period, the strategy outperformed its Global Equities category average of 16.8%. LOUP’s top holding, CBRS, saw positive movement up 18.1% at press time Thursday. LOUP charges a 70 basis point fee to actively invest in developing and emerging markets stocks. Specifically, the active tech stocks ETF looks for firms on the “frontier” of tech development, assessing offerings based on fundamental metrics. See more: How Goldman Sachs’ Quant Approach Looks to Unlock Active ETFs Together, the fund crafts a tight portfolio emphasizing AI, robotics, autonomous vehicles, and other emerging themes. The active ETF prioritizes revenue and growth expenditures, favoring companies that spend heavily in these areas. That strategy helped the active ETF perform well over the last year. According to ETF Database data, LOUP has returned 28.4% over the last 2 months, outperforming its Global Equities category average of 16.8%. Additionally, LOUP has outpaced its category average over three- and five-year periods. The active tech stocks ETF has also beaten that metric YTD, though by a closer margin.Diversification and Tech Stocks UpsideWhat role can LOUP play in portfolios right now? Certainly a satellite offering, the strategy can help investors add tech exposure without adding more concentration risk. Per ETF Database data, a third of its holdings originate from outside of the U.S. While LOUP includes common semiconductor names found in other tech-focused funds, it also invests in names like Cerebras Systems, Inc. (CBRS). According to the ETF Database Stock Exposure tool, the fund has the second-largest weight in CBRS — a semiconductor and data center firm that jumped 18.1% on Thursday. Together, LOUP and its focus on frontier, cutting-edge tech stocks could appeal to investors. Offering upside and diversification in key segments, LOUP may be one to watch entering a complicated second half. For more news, information, and strategy, visit the Future ETFs Content Hub.

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