Goldman Files For 'Motif' ETFs

August 07, 2018

A recent filing from Goldman Sachs outlines the financial giant’s plans for a family of ETFs covering various themes. Each of the funds will track an index provided by Motif Investing, which offers a wide range of thematic portfolios.

The five proposed funds are as follows:

The Goldman Sachs Motif Data-Driven World ETF will seek to capture the performance of companies participating in the widespread increase in electronic data around the world along with its transmission, storage and analysis. The fund’s subthemes will include the internet of things, data infrastructure, big data, cybersecurity and artificial intelligence.         

The Goldman Sachs Motif Finance Reimagined ETF targets companies benefiting from the structural changes in how the financial industry delivers its services, including those involved in the digitization of finance, the migration to low-cost passive investments and blockchain technology.

The Goldman Sachs Motif Human Evolution ETF will invest in companies that benefit from the development of new medical treatments and technology used to treat humans throughout their lives. The category includes the subthemes of precision medicine, genomics, life extension, robotics surgery and consumer health care.

The Goldman Sachs Motif Manufacturing Revolution ETF covers companies involved in the use of new materials, energy sources and methods in the manufacturing process and also the manufacture of new products, including the subthemes of robotics, 3D printing, autonomous vehicles, drones and clean energy.

The Goldman Sachs Motif New Age Consumer ETF will target companies that benefit from structural shifts in consumer markets that are caused by changing demographics, advances in technology and widespread preferences, including the subthemes of e-commerce, social media, online gaming, online music and video, experiences on goods, evolution of education, and health and wellness.

Methodology

According to the prospectus, the underlying indexes for the funds will draw their components from the markets of France, Germany, Hong Kong, the United Kingdom and the United States. Potential components are assigned multipart beta scores drawn from publicly available sources, including regulatory filings, academic journals and patent filings. The beta scores indicate the company’s relevance to the targeted themes.

Eligible companies must have at least $500 million in market capitalization and meet liquidity thresholds as well as provide at least a minimum level of exposure to the targeted theme. From there, up to 120 companies are selected, with their weights determined through a combination of their exposure to the targeted theme and their market capitalization, subject to limits intended to avoid significant concentrations, the document says.

The filing did not include tickers, expense ratios or a listing exchange.

Contact Heather Bell at [email protected]

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