Today, Goldman Sachs launched the Goldman Sachs Future Tech Leaders Equity ETF (GTEK), a fully transparent, actively managed global equity ETF that will invest in listed technology companies with market capitalizations of less than $100 billion. GTEK has an expense ratio of 0.75% and trades on NYSE Arca.
Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management, stated that the goal of the ETF is to help clients get invested beyond the existing tech incumbents: “The world is changing very rapidly, but in that rapidly changing world, we have an equity market which is by definition backward-looking because the companies that have performed best over the last couple of decades are the biggest positions in that index.”
“We passionately believe that the list of the dominant tech franchises 10 years from now is going to look very different from the list today. Specifically, it’s going to be more global and it’s going to be from parts of the tech ecosystem that aren’t as represented at the top of the league table,” she continued.
Fund Takes Global Approach
Sung Cho, portfolio manager of the fund, noted that the fund is based on the idea that we are at a “key inflection point, with tech innovation expanding to other geographies and down the market capitalization spectrum.”
For this reason, approximately half of the portfolio will be invested in companies from outside the U.S. The portfolio will also have a targeted allocation of 25-35% in emerging markets.
The resulting portfolio will hold 60-80 companies. Key themes within the portfolio at launch include fintech, cybersecurity, e-commerce and smart components.
This fund marks an expansion of the firm’s existing suite of thematic ETFs, including the Goldman Sachs Future Planet Equity ETF (GSFP), which launched in mid-July.