Goldman Sachs Future Tech Leaders Equity ETF

GTEK

Market cap $181M

The new year has meant a new slate of things for investors to worry about. Undoubtedly, geopolitical tensions have risen, and they've started to really rock the markets.

If you're invested in the broad market, you almost certainly have exposure to the megacap tech firms that have defined the S&P 500 for over a year. While the megacap tech names have delivered strong performances for portfolios, they continue to represent some notable concentration risk.

Many growth-heavy investors might have felt it when the Nasdaq 100 slipped close to 8% as part of a tech-driven correction.

Nothing against the Ark Innovation ETF (ARKK), which is having a glorious year, now up more than 35% year to date and over 78% in the last two years.

Legendary investment bank Goldman Sachs (NYSE:GS) might not be the biggest name in the ETF game, but it is a powerful emerging force that passive investors might wish to look to if they seek unique traits at an incredibly competitive price of admission.

Active ETFs have become a key part of the investing landscape for retail investors and institutional investors, alike.

Jay Jacobs, BlackRock head of U.S. equity ETFs, and Nate Geraci, ETF Store president, join CNBC's Dom Chu on ‘ETF Edge' getting granular with AI and how BlackRock is trying to carve out a space of its own in the field.

GTEK's initial performance was poor, losing over 45% in its first year due to bearish investor sentiment and market conditions. The ETF's strategy of excluding mega-cap tech stocks led to underperformance, despite its aim to capitalize on emerging tech leaders. GTEK rebounded, gaining nearly 80% since October 2022, driven by sectoral shifts and a resilient U.S. economy.

Going into Thanksgiving week, we are reassured of two things we already knew about artificial intelligence. They could play a role in portfolio allocation decisions for the new year.

Good Morning, VettaFi Voices! Disruptive innovation is a popular topic, and it encompasses everything from bitcoin and cryptocurrency to electric vehicles to artificial intelligence.