The Goldman Sachs Innovate Equity ETF (GINN) is up over 3% by mid-afternoon Thursday as all major U.S. indexes rally.
U.S. stock indexes increased in a broad-based rally on Thursday after upbeat annual forecasts from several retailers, while the U.S. economy contracted in the first quarter, easing concerns about aggressive interest rate hikes, Reuters reported.
All of the 11 major S&P sectors advanced, with consumer discretionary up 4.1%, followed by a 1.9% rise in the financials sector. The small-cap Russell 200 index added 2.1%, Reuters reported. Separately, weekly jobless claims fell to 210,000 last week, consistent with a tight labor market despite rising interest rates and tightening financial conditions.
GINN provides differentiated global, all-cap exposure to the beneficiaries of technological innovation regardless of sector, geography, or market capitalization, according to the firm’s website.
GINN seeks to track a bespoke index which leverages advanced technology to select and weight companies by a function of “thematic beta,” providing precise exposure to the following themes: data driven world, finance reimagined, human evolution, manufacturing revolution, and new age consumer. An algorithm screens public information and company filings for key words tied to any one of the five themes and related sub-themes. Securities are then scored and ranked for relevance to a sub-theme, with the top 50 being eligible for index inclusion, according to VettaFi.
Relevance scores for all sub-themes are combined to calculate each company’s overall score. The top 100 companies with the highest scores, from each of the five themes, are included in the underlying index. Holdings are weighted in the index according to a combination of market cap and thematic beta calculation, subject to a 2% capping. The objective is to weight towards stocks with higher relevance yet provide an equal weighting to each theme. The index is rebalanced quarterly, according to VettaFi.
The fund charges an expense ratio of 50 basis points.
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