Lazard Next Gen Technologies ETF

Lazard Next Gen Technologies ETF (TEKY) is an actively managed fund. Its managers pick roughly 40 to 60 companies worldwide that are tied to artificial intelligence, from chipmakers to software and cybersecurity firms. US companies made up 53.2% of the fund as of June 30, 2026, with large stakes in Taiwan, South Korea and Japan. Its 0.50% expense ratio is above the 0.29% average for similar tech funds, and it only launched in April 2025.

• Over the year to Oct 27, 2026, TEKY returned +7.5%, 9th of 9 among similar funds.
• The deepest fall in its price history was 21.4% (Nov 3, 2025 to Mar 30, 2026), recovered by May 4, 2026.

As of Jun 30, 2026, the fund held 48 securities; the ten largest made up 39.17% of assets.

By sector

• Over the three months to Jun 30, 2026, investors withdrew a net $36K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +21.03%, +14.20%, +2.11%.

TEKY does not track an index. Lazard's managers start with an in-house data science platform that screens a broad range of stocks for exposure to artificial intelligence. They then rank each company by how much of its business depends on the theme, looking at products, intellectual property, research pipeline, market share, growth, revenue and earnings. Candidates fall into three groups: hardware infrastructure (chip designers and makers, cloud providers, data center builders), enabling technologies (software platforms, cybersecurity vendors) and companies that build or sell AI applications.

Next comes bottom-up stock picking, which means judging companies one at a time. Young, smaller firms are valued mainly on revenue growth. Established, cash-generating firms may be valued on EV/EBITDA, a ratio that compares a company's total value with its operating earnings. Research narrows the list to about 40 to 60 holdings. As of June 30, 2026, the fund held 48 stocks, and the top ten made up 39.2% of assets. Portfolio turnover was 11%. The fund has no fixed index rebalancing schedule; the managers make changes as their views shift.

The fund is non-diversified, so it can put more money into fewer companies. It must hold more than 25% in the industrials and information technology sectors. It may use futures or swaps to hedge or to try to raise returns, and it may hedge some or all of its foreign currency exposure. As of June 30, 2026, it held no derivatives: 98.8% was in stocks and 1.2% in cash.

• TEKY charges 0.5% a year, versus an average of 0.29% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.6% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $739 over 10 years (assuming a 5% annual return).

TEKY is a concentrated, actively managed AI theme fund with a beta of 1.88 and a short track record, so it fits better as a small add-on than as a foundation.

TEKY launched in April 2025, after the 2008, 2020 and 2022 downturns, and has no full calendar year of results. That makes it too young to show how it holds up in a deep bear market. Its worst drop so far was 21.4%, from November 3, 2025 to March 30, 2026. It got back to its earlier peak by May 4, 2026. Over the year to October 27, 2026, its volatility was 28.5% and its beta was 1.88, meaning it moved almost twice as much as the market. Anyone who may need to sell shares in a bad year could end up selling after a sharp fall. Income is small: a 0.18% yield, paid once a year. In the SEC's standard example, the 0.50% expense ratio costs about $50 in the first year on $10,000. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.