In a rapidly changing world, you need to consider how everything will look tomorrow. To that end, the newly launched Goldman Sachs Future Tech Leaders Equity ETF (GTEK) focuses on technology companies with market capitalizations of under $100 billion dollars.
Technology innovation has been a driving force in the past few decades, and as the world wrestles with monumental challenges, technology is only going to increase in importance. US mega-caps have been sucking all the oxygen out of the room, but technology is transformational globally, and the next market pillar could come from anywhere. “It’s going to be another company’s chance to be up another 175,000% since its IPO,” said Katie Koch, GSAM’s co-head of fundamental equities.
Tech leaders will play a monumental role in issues such as figuring out a path to a green future and dealing with the ongoing COVID-19 pandemic, but tech innovation is also going affect all sorts of components of our lives. Our hobbies, our social lives, and even our art and entertainment are inevitably going to intersect with technology.
Brook Den, GTEK’s portfolio manager, said, “We see many exciting opportunities in areas including smart components, digital transformation, fintech, and cybersecurity. The current health pandemic has further accelerated the digitization 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.”
GTEK finds itself right at home with Goldman Sachs’ existing suite of thematic ETFs designed to help investors best position their portfolios to take advantage of future disruption. Goldman Sachs Asset Management’s Fundamental Equity business manages over $20 billion in thematic equity strategies and has invested in dedicated technology equity strategies for over two decades. Other funds include the GS Future Planet Equity ETF (GSFP), and the GS Innovate Equity ETF (GINN).
For more information, visit www.gsam.com.
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