Goldman Sachs’ GTEK: A Hand-Picked Cutting-Edge Tech Portfolio

Goldman Sachs Future Tech Leaders Equity ETF amassed $260 million in its first three months.

Concept art of a stock picker selecting technology stocks
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Since their debut in financial markets, the vast majority of exchange-traded funds (ETFs) have been passively managed, either tracking an index or tweaking an index in some way to achieve their investment goals.

That has changed in recent years. In 2021 through the third quarter, ETF providers launched 332 products – with 197 of them, or 59%, managed by real, live humans, according to ETF.com. Seven of the top 10 ETF launches in 2021 (ranked by assets under management) are actively managed, gobbling up $10.2 billion in assets amongst them.

One of the more intriguing launches of 2021 sits not far outside the top 10: Goldman Sachs Future Tech Leaders Equity ETF (GTEK (opens in new tab)) amassed an impressive $260 million in less than three months of existence.

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Goldman’s managers and a horde of more than 80 fundamental equity analysts are on a mission to identify innovative companies aligned with durable, long-term growth themes – and ones that trade for reasonable valuations to boot.

You might assume that GTEK is chock-full o’ tech – and you’d be right: Nearly 75% of assets are invested in technology firms; the tech-adjacent communication services sector claims 13%.

Some 62% of the portfolio is invested in U.S. companies, including Marvell Technology (MRVL (opens in new tab), semiconductors) and Workday (WDAY (opens in new tab), cloud software). But the sizable remainder of assets is spread across another dozen or so countries. Top GTEK holdings MediaTek and Silergy are a pair of Taiwanese silicon firms.

graphic illustration of the weightings of different sectors

(Image credit: Kiplinger graphic)

Chart of popular ETFs launched in 2021

(Image credit: Kiplinger graphic)
Kyle Woodley
Senior Investing Editor, Kiplinger.com

Kyle is senior investing editor for Kiplinger.com. As a writer and columnist, he also specializes in exchange-traded funds. He joined Kiplinger in September 2017 after spending six years at InvestorPlace.com, where he managed the editorial staff. His work has appeared in several outlets, including U.S. News & World Report and MSN Money, he has appeared as a guest on Fox Business Network and Money Radio, and he has been quoted in MarketWatch, Vice and Univision, among other outlets. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.