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No Mag 7? No Problem for Active Tech ETF GTEK

It’s one thing to want more tech exposure, but it’s another to get that exposure without overweighting the big names. Whether that’s the Mag 7 or just the AI hyperscalers, most investors are already saturated with big-name tech exposure.Key Takeaways: While mainline tech ETFs like VGT have produced okay returns, active tech ETF GTEK has exploded. VGT has returned just around 25% YTD compared to almost 50% for GTEK. GTEK avoids the big Mag 7 names and instead focuses on potentially explosive up-and-comers. So how can investors gain more exposure to innovative technologies without doubling down on the same big names? The active tech ETF GTEK excludes them and other mega cap names, nearly doubling the performance of rival tech ETFs in the process. The Goldman Sachs Future Tech Leaders Equity ETF (GTEK B-) charges a 75 basis point fee. According to ETF Database data, the strategy has returned 48.9% YTD, building on an impressive 64% return over the last 12 months. That YTD return nearly doubles the performance of the Vanguard Information Technology ETF (VGT A), a key leader in tech funds. While VGT leans heavily on mega-cap giants like Nvidia (NVDA), it has only returned 25% YTD by comparison.  See more: Income ETF GPIQ Tracking to Double AUM This Year GTEK instead relies on names like Marvell Technology (MRVL), which has exploded this year. MRVL has returned an eye-watering 164% YTD. How, then, does the active tech ETF invest and identify funds like MRVL? The strategy uses a bottom-up approach to make high conviction picks. It seeks out potentially generational leaders focused on disruptive or emerging tech areas. The strategy excludes mega cap tech names and only invests in firms with less than $100 billion in market cap.  With its active approach, the fund can play a lasting role in investor portfolios. By taking a satellite slot, it could provide that extra oomph to holdings when mainline tech benchmarks like the Mag 7 disappoints. Whether that’s MRVL or another fund, GTEK gets at what investors really enjoy about active — picking out high growth contenders.  For more news, information, and strategy, visit the Future ETFs Content Hub.

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