Solactive and Goldman Sachs Asset Management have developed the Solactive Innovative Global Equity Index, which will serve as the underlying for Goldman Sachs’ new Goldman Sachs Innovate Equity ETF.
The index takes into account five key disruptive themes that are redefining the business world, the global economy and society, and, therefore, the investment landscape.
The Goldman Sachs Innovate Equity ETF combines five established Goldman Sachs ETFs that previously tackled technological innovations separately. From 9 November, the legacy ETFs will be reorganised and merged in the Goldman Sachs Innovate Equity ETF. The five topics ‘Data-Driven World’, ‘Finance Reimagined’, ‘Human Evolution’, ‘Manufacturing Revolution’, and ‘New Age Consumer’ encompass 23 subthemes, including, for example, E-Commerce, Artificial Intelligence, Blockchain, Genomics, and Robotics.
The selection of the Solactive Innovative Global Equity Index’s constituents is based on Solactive’s proprietary Natural Language Processing Engine ARTIS. ARTIS is utilising advanced algorithms to parse high volumes of public documents evaluating companies’ exposure to various themes or topics. The sophisticated procedure not only detects potential index constituents considering a firm’s exposure to a theme but also ranks its importance to the very subject or industry. The Solactive Innovative Global Equity Index itself is comprised of five equally-weighted indices that include companies from the aforementioned respective topics ‘Data-Driven World’, ‘Finance Reimagined’, ‘Human Evolution’, ‘Manufacturing Revolution’, and ‘New Age Consumer’.
“Technological progress is inevitable, and what seemed unimaginable years ago is, today, something we cannot live without. Therefore, we think it is crucial to create an index that reflects societal and technological changes from early on,” says Timo Pfeiffer, Chief Markets Officer at Solactive. “We are very fortunate that Goldman Sachs Asset Management regards in us a trusted provider that enables them to reach the goal of making future investment trends investible with their new ETF. We are looking forward to continuing our fruitful relationship with Goldman Sachs Asset Management.”
