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ARKK vs. GTEK: Which Technology ETF Is Better?

By Eric Cuka – Oct 21, 2021 at 10:30AM

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Goldman Sachs recently launched an actively managed ETF to combat ARK Invest, but which one is best for your portfolio?

ARK Invest ETFs, such as the ARK Innovation ETF (ARKK -0.23%), have been under scrutiny so far in 2021. After a standout 2020, the ETF has taken a breather in 2021. The goal of ARKK, an actively managed ETF, is to invest in "disruptive innovation" over the long term. Cathie Wood has been very vocal in explaining that the fund invests with the goal of multiyear holdings, capturing gains from secular growth trends and disruptive technology. 

ARKK invests in the following themes:

  • Genomic revolution
  • Industrial innovation
  • Next-generation internet
  • Fintech innovation

Goldman Sachs (GS 1.03%) recently created the Goldman Sachs Future Tech Leaders ETF (GTEK -1.27%), which invests in companies it thinks will be the next big winners in technology. GTEK, like ARKK, is actively managed. However, the fund focuses on a more global approach. Goldman Sachs believes it can take advantage of its 80-plus analysts scattered across the globe to find the best opportunities with a more balanced approach. Both ETFs focus on businesses with smaller market caps, but GTEK specifically focuses on an all-cap strategy, blending large and small businesses under a $100 billion market cap.

In today's video, I break down each ETF and show you every position in each fund. Additionally, I provide analysis and opinions on which ETF may be the best fit for your portfolio. Please watch the below video, and don't forget to subscribe. 

*Stock prices used in the below video were during the trading day of Oct. 20, 2021. The video was published on Oct. 20, 2021.

Eric Cuka owns shares of ARK Innovation ETF, First Trust ISE Cloud Computing, and WisdomTree Trust-WisdomTree Cloud Computing Fund. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policyEric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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