Research > ETFs > ETF / ETP Commentary > 

Active Tech ETF GTEK Delivers Smashing YTD Performance

Tech stocks remain a key space for investors, with the AI revolution driving continued success for AI-adjacent stocks. Investors have benefitted from that growth in recent years, but now that comes with concentration risk. The active tech ETF GTEK has produced robust numbers this year, outperforming big time tech ETFs like VGT without that concentration risk. Key Takeaways: The active tech ETF GTEK has outperformed YTD, returning 56.6%. That has both outperformed big time tech ETFs like the Vanguard Information Technology Index Fund ETF (VGT). The fund, then, can provide a healthy option to reduce concentration risk and diversify portfolios. The Goldman Sachs Future Tech Leaders Equity ETF (GTEK B-) actively invests in tech firms with upside potential. So, rather than having the big Magnificent Seven names, or whichever acronym fits those huge firms, it has names with plenty of runway left to grow. What’s more, its active remit allows it to identify the strongest names and switch out of those companies whose outlooks may have cooled.  The fund charges a 75 basis point (bps) fee for that approach. Specifically, the fund uses an active, bottom-up approach. The fund only invests in companies with less than $100 billion in market cap. Intriguingly, it can invest in tech-enabled companies in areas like healthcare and direct marketing retail, as well. Its managers use fundamental metrics to screen for growth and quality, too. See more: Emerging Markets to Spike as Oil Prices Dip? Try GSEE Together, that has helped the active tech ETF produce some strong performances. GTEK has returned 83.4% over the last twelve months according to ETF Database data. That has significantly outperformed the ETF Database Technology Equities category average in that time. The average comes in at just 50.2% as of June 23rd.  On a YTD basis, GTEK has returned 56.6%, as well. That has outperformed the average in that time frame too. It has also outperformed the Vanguard Information Technology Index Fund ETF (VGT) YTD. VGT has returned 23.76% YTD compared to GTEK’s 56.6% return.  Overall, then, the fund presents a case for consideration as a portfolio’s tech allocation. For those who want to invest in innovation without adding to megacap concentration risk, GTEK provides a robust, high performance option. For more news, information, and strategy, visit the Future ETFs Content Hub.

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.