Tech stocks have become a central pillar of most investor portfolios, driving performance amid the AI revolution. But while they can promise huge opportunities, they can also bring significant uncertainty and the growing concern surrounding concentration risk from a select few overperformers.
A $10,000 stake in Goldman Sachs Future Tech Leaders Equity ETF (NASDAQ:GTEK) on the last trading day of 2025 was worth about $15,200 at Monday's close, with the fund up 52% year to date through June 1, 2026.
The Goldman Sachs Future Tech ETF (GTEK) has displayed robust returns so far this year. The strategy has returned 30.9% YTD according to ETF Database data.
The tech ETF investing landscape is a crucial one for investors right now. Few want to give up on their tech investments, but many are concerned about concentration risk from their largest tech allocations.
Despite AI bubble concerns and geopolitical issues, the S&P 500 has managed to return to positive performance YTD after a conflict-related drop. Tech remains a key part of that story even as headlines about AI valuations abound.
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.
Active ETFs have become a key part of the investing landscape for retail investors and institutional investors, alike.
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.