Lazard Next Gen Technologies ETF (TEKY) seeks to provide exposure to next-generation technology companies positioned to benefit from transformative technological trends. This actively managed technology ETF focuses on innovative companies across various tech subsectors including artificial intelligence, cloud computing, cybersecurity, and emerging digital platforms.
How It Works
TEKY employs an active management approach where Lazard's research team selects technology companies based on fundamental analysis and growth potential assessment. The fund focuses on companies developing or benefiting from disruptive technologies, with emphasis on sustainable competitive advantages and scalable business models. Portfolio construction considers both established tech leaders and emerging innovators, with regular rebalancing based on changing market dynamics and technological developments.
Key Features
- Active management by Lazard's experienced technology research team provides potential for alpha generation through selective stock picking
- Zero expense ratio structure makes it one of the most cost-effective actively managed technology ETFs available
- Focus on next-generation technologies positions investors ahead of major technological transformation trends
Risks
- This ETF can lose value significantly during technology sector downturns, potentially declining 40-60% in severe tech bear markets like 2000-2002
- Active management risk means the fund may underperform passive technology ETFs if stock selection proves unsuccessful over time
- Concentration in growth-oriented tech stocks creates vulnerability to rising interest rates, which typically pressure high-valuation technology companies disproportionately
Who Should Own This
Best suited for aggressive growth investors with 3-7 year time horizons and high risk tolerance seeking technology sector exposure. Appropriate as a satellite holding representing 5-15% of equity allocation for investors bullish on technological innovation. Ideal for those wanting active management in the rapidly evolving technology landscape.