Bringing you live news and features since 2006 

Goldman Sachs Asset Management launches Goldman Sachs Future Tech Leaders Equity ETF


Goldman Sachs Asset Management has launched the Goldman Sachs Future Tech Leaders Equity ETF (GTEK). GTEK is a fully transparent, actively managed equity ETF that aims to generally invest in listed technology companies with market capitalisations of less than USD100 billion, across both developed and emerging markets. Goldman Sachs intends to invest in GTEK alongside its clients. 

“With almost a quarter of S&P 500 market capitalisation in the top 1 per cent of stocks, many investors are overexposed to mature US mega cap technology companies,” says Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management. “We believe the dominant tech franchises in 10 years will be very different from the platforms we all know today. We are working diligently on behalf of our clients to try and identify future tech leaders with robust growth rates and the potential for outsized returns.” 

The firm writes that being at the forefront of technological innovation is critical to success in a digital world, where the pace of change continues to accelerate. “Most of the innovation we’ve seen in tech over the past few decades has been concentrated in the US and centred around a few companies,” says Sung Cho, portfolio manager of GTEK, “but we believe we’re at a key inflection point, with tech innovation expanding to other geographies and down the market capitalisation spectrum.” 

GTEK will seek to identify potential future tech leaders through active, bottom-up security selection with a disciplined approach to valuation. “GTEK will aim to provide exposure to our high conviction technology investment ideas globally, in a way that may complement investors’ existing portfolios,” says Brook Dane, portfolio manager of GTEK. “We see many exciting opportunities in areas including smart components, digital transformation, fintech, and cybersecurity. The current health pandemic has further accelerated the digitisation trend, creating additional secular growth tailwinds, which we want to help investors get on the right side of to position their portfolios for the future.” 

The firm writes that by investing in a fully transparent active ETF, investors may benefit further from being able to access these opportunities through an innovative wrapper. “By combining the expertise of our Fundamental Equity investors with the benefits of the ETF vehicle – including greater tax efficiency, transparency and trading flexibility than traditional mutual funds – we are able to provide our clients with compelling, tax efficient investment solutions,” says Mike Crinieri, global head of ETFs within Goldman Sachs Asset Management.

The launch of GTEK expands the firm’s existing suite of thematic ETFs designed to help investors position their portfolios on the right side of disruption by providing focused exposure to long-term secular growth trends. Goldman Sachs Asset Management’s Fundamental Equity business manages over USD20 billion in thematic equity strategies and has been investing in dedicated technology equity strategies for over 20 years. GTEK, the GS Future Planet Equity ETF (GSFP) and the GS Innovate Equity ETF (GINN) make the firm’s thematic equity strategies accessible to US-based investors in an innovative wrapper.

GTEK is an actively managed ETF, which is one that trades on an exchange like other publicly-traded securities, and it will trade on NYSE Arca, Inc. under the ticker symbol GTEK. GTEK is not an index fund and does not seek to replicate the performance of a specified index.

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by