Goldman Sachs has launched three new ETFs today, expanding the firm’s suite of actively managed, transparent thematic equity ETFs. As with recent launches such as the Goldman Sachs Future Tech Leaders Equity ETF (GTEK), the firm is focused on identifying tomorrow’s winners.
Each of the three ETFs focuses on a specific theme that is seeing disruption. Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management, stated that lowered return expectations for the traditional 60/40 portfolio going forward means that “investors need to think differently about their portfolios. And, in our view, aligning your portfolio with key secular growth trends presents a unique wealth creation opportunity.”
All three ETFs have an expense ratio of 0.75% and will trade on NYSE Arca.
Focus On Younger Consumers
The Goldman Sachs Future Consumer Equity ETF (GBUY) is the firm’s take on a consumer retail ETF, with a focus on younger consumers such as millennials and Gen Z.
Marissa Ansell, client portfolio manager on the Fundamental Equity team, said that “younger consumers are the world’s most powerful and disruptive consumers ever.” She went on to note that these generations tend to have specific spending habits characterized by the adoption of technology as well as different lifestyle preferences and values.
The portfolio is global in nature, which the firm feels is an important point given that 85% of the world’s younger consumers reside in emerging markets.
Future Of Health Care
The Goldman Sachs Future Health Care Equity ETF (GDOC) offers exposure to cutting-edge health care themes such as genomics, precision medicine, technology-enabled procedures and digital health care.
Jenny Chang, portfolio manager for GDOC, noted that the health care space in particular is at an inflection point: “Technological advancements over the last few years have driven an unprecedented amount of innovation in the space. The pandemic has further accelerated that pace of innovation and brought unprecedented funding into the space.”
Real Estate & Infrastructure
The Goldman Sachs Future Real Estate and Infrastructure Equity ETF (GREI) will invest in real estate and infrastructure companies that are aligned with secular growth trends such as innovation, demographic shifts, experiences over things, environmental sustainability and social sustainability.
Abhinav Zutshi, portfolio manager for GREI, said that “one of the key differentiators of the ETF is that we invest in both real estate and infrastructure. Combining the two provides a stronger return potential, while at the same time offering predictable growth, low volatility and an attractive yield.”