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This New Goldman Sachs ETF Is Targeting a Space Ruled by ARK Invest

profileSudhan P

Goldman Sachs has launched a new exchange-traded fund (ETF) that’s apparently trying to give ARK Investment Management’s ARK ETFs a run for its money.

Called the Goldman Sachs Future Tech Leaders Equity ETF, the innovation-focused ETF is trading in the US under the ticker symbol GTEK.

In this article, let’s find out more about the new ETF from Goldman Sachs and how it differs from ARK Invest’s flagship ETF, the ARK Innovation ETF (ARKK).

Source: Giphy

What’s the Goldman Sachs Future Tech Leaders Equity ETF About?

The Goldman Sachs Future Tech Leaders Equity ETF (GTEK) is an actively managed ETF, similar to the ARK ETFs.

GTEK generally invests in listed technology companies with market capitalisations of below US$100 billion, across both developed and emerging markets.

Goldman Sachs believes the dominant technology names in 10 years will be very different from the platforms we all know today.

And that the tech innovation will expand to geographies other than the US and down the market capitalisation spectrum.

The Goldman Sachs Future Tech Leaders Equity ETF seeks to identify potential future tech leaders through active, bottom-up stock selection with a disciplined approach to valuation.

Its areas of investment will include smart components, digital transformation, fintech, and cybersecurity.

Brook Dane, portfolio manager of the Goldman Sachs Future Tech Leaders Equity ETF, said in the company’s press release:

“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.”

Breakdown of the Goldman Sachs Future Tech Leaders Equity ETF

The Goldman Sachs Future Tech Leaders Equity ETF’s holds 66 stocks as of 28 September.

Here’s the full list of the ETF’s stock holdings and their respective weighting:

CompanyTicker% Weighting
Marvell Technology IncMRVL3.20
MercadoLibre IncMELI2.77
HubSpot IncHUBS2.56
Kingdee International Software Group Co Ltd2682.56
Silergy Corp64152.41
Workday IncWDAY2.36
MediaTek Inc24542.30
Entegris IncENTG2.29
Palo Alto Networks IncPANW2.16
Atlassian Corp PLCTEAM2.12
Adyen NVADYEN2.10
Hoya Corp77412.06
Snowflake IncSNOW1.99
Match Group IncMTCH1.96
Fidelity National Information Services IncFIS1.87
Yandex NVYNDX1.86
United Microelectronics Corp23031.82
Nidec Corp65941.77
Motorola Solutions IncMSI1.76
Tokyo Electron Ltd80351.74
Paylocity Holding CorpPCTY1.72
Twilio IncTWLO1.72
Vanguard International Semiconductor Corp53471.71
Cadence Design Systems IncCDNS1.63
Aptiv PLCAPTV1.60
Bill.com Holdings IncBILL1.60
ASMedia Technology Inc52691.57
Cognizant Technology Solutions CorpCTSH1.57
SBA Communications CorpSBAC1.57
Splunk IncSPLK1.56
MKS Instruments IncMKSI1.54
Datadog IncDDOG1.50
Electronic Arts IncEA1.50
Sea LtdSE1.47
Etsy IncETSY1.46
NXP Semiconductors NVNXPI1.44
ON Semiconductor CorpON1.43
Snap IncSNAP1.42
Twitter IncTWTR1.36
NAVER Corp0354201.30
NetEase IncNTES1.28
Expedia Group IncEXPE1.27
Viavi Solutions IncVIAV1.25
EPAM Systems IncEPAM1.23
Okta IncOKTA1.21
Delta Electronics Inc23081.15
RingCentral IncRNG1.15
Weimob Inc20131.10
Win Semiconductors Corp31051.10
Fiserv IncFISV1.06
AppLovin CorpAPP1.05
UiPath IncPATH1.05
TDK Corp67621.04
Bilibili Inc96261.03
Cree IncCREE1.02
Global Payments IncGPN1.02
Dlocal Ltd/UruguayDLO0.98
Cellnex Telecom SACLNX0.96
Qualtrics International IncXM0.96
Infineon Technologies AGIFX0.87
Luxshare Precision Industry Co Ltd0024750.85
Procore Technologies IncPCOR0.83
Booz Allen Hamilton Holding CorpBAH0.80
Pagseguro Digital LtdPAGS0.73
Krafton Inc2599600.52
C3.ai IncAI0.23

In terms of sector weightings, information technology takes up the most of the Goldman Sachs Future Tech Leaders Equity ETF at 72.1%, followed by communication services (14.7%) and consumer discretionary (7.1%).

The remaining sectors include industrials (2.6%), healthcare (2.1%), and real estate (1.6%).

Geographical allocation wise, the United States comprises 61.7% of the ETF, followed by Taiwan (12.1%) and China (6.8%).

The Goldman Sachs Future Tech Leaders Equity ETF’s expense ratio stands at 0.75%.

Goldman Sachs Future Tech Leaders Equity ETF vs ARK Innovation ETF

The main difference between the Goldman Sachs Future Tech Leaders Equity ETF and the ARK Innovation ETF is the companies they invest in.

The Goldman Sachs Future Tech Leaders Equity ETF focuses on market capitalisations of below US$100 billion, while the ARK Innovation ETF doesn’t have such a limitation (to my knowledge).

ARKK’s biggest holding is Tesla Inc (NASDAQ: TSLA), with a market cap of over US$750 billion.

The weighted average market cap for the Goldman Sachs ETF is US$43.4 billion, while that of the ARK Innovation ETF stands at US$112 billion currently.

The ARK Innovation ETF’s typical number of holdings is lower as well — between 35 and 55 — but the Goldman Sachs Future Tech Leaders Equity ETF holds 66 stocks, as seen earlier.

Both ETFs have the same expense ratio, though, at 0.75%.

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Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. The writer may have a vested interest in the companies mentioned.

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About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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