In the Thematic Investing series, Tom Lydon, CEO of ETF Trends and ETF Database, alongside experts and innovators from Goldman Sachs, sheds light on one of the most popular alternative investments, thematics, and how they can benefit advisors and investors. In the fourth episode of the series, Lydon is joined by Alexis Deladerrière, portfolio manager at Goldman Sachs Asset Management, to discuss the Goldman Sachs Future Planet Equity ETF (GSFP).
GSFP is an actively managed fund that seeks to invest in climate technology through companies developing innovative technologies to aid the global transition to sustainability, or what Deladerrière describes as the climate change enablers.
“We believe it’s critical to take a holistic view of decarbonization technology, so we invest across five themes: clean energy, resource efficiency, sustainable consumption, circular economy, and water sustainability,” Deladerrière explains.
Goldman Sachs believes that the world is on the precipice of a sustainability revolution that will have broad-reaching impacts across all sectors and industries. Through active management, Goldman Sachs seeks to identify companies developing technologies that will assist in the climate change transition and invest across all caps to capture the innovation happening within the space.
A Global Investment
GSFP invests globally, including in emerging markets, allowing the fund to capture the worldwide growth and potential. “This is also an important feature because we know many of these technologies are being developed outside of the U.S. Let’s take, for example, the solar value chain, which is essentially located in China. China is also the biggest market in the world for electric vehicles,” Deladerrière explains.
An example of the diversification that GSFP seeks to capture is within renewable energy, not just in standard allocations like solar energy but in technologies such as renewable liquid fuels, which could be used in vehicles where electrification simply isn’t an option, such as in airplanes. GSFP also invests along the theme of sustainable consumption, such as plant-derived meat alternatives and a Swedish company that recycles jeans for reuse.
“These are examples of companies that we invest in, that we like and we believe are differentiated and offer solutions to sources of carbon emissions that up to now didn’t really exist,” Deladerrière says.
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