This New Goldman Sachs ETF Is Targeting a Space Ruled by ARK Invest
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).
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:
|Marvell Technology Inc||MRVL||3.20|
|Kingdee International Software Group Co Ltd||268||2.56|
|Palo Alto Networks Inc||PANW||2.16|
|Atlassian Corp PLC||TEAM||2.12|
|Match Group Inc||MTCH||1.96|
|Fidelity National Information Services Inc||FIS||1.87|
|United Microelectronics Corp||2303||1.82|
|Motorola Solutions Inc||MSI||1.76|
|Tokyo Electron Ltd||8035||1.74|
|Paylocity Holding Corp||PCTY||1.72|
|Vanguard International Semiconductor Corp||5347||1.71|
|Cadence Design Systems Inc||CDNS||1.63|
|Bill.com Holdings Inc||BILL||1.60|
|ASMedia Technology Inc||5269||1.57|
|Cognizant Technology Solutions Corp||CTSH||1.57|
|SBA Communications Corp||SBAC||1.57|
|MKS Instruments Inc||MKSI||1.54|
|Electronic Arts Inc||EA||1.50|
|NXP Semiconductors NV||NXPI||1.44|
|ON Semiconductor Corp||ON||1.43|
|Expedia Group Inc||EXPE||1.27|
|Viavi Solutions Inc||VIAV||1.25|
|EPAM Systems Inc||EPAM||1.23|
|Delta Electronics Inc||2308||1.15|
|Win Semiconductors Corp||3105||1.10|
|Global Payments Inc||GPN||1.02|
|Cellnex Telecom SA||CLNX||0.96|
|Qualtrics International Inc||XM||0.96|
|Infineon Technologies AG||IFX||0.87|
|Luxshare Precision Industry Co Ltd||002475||0.85|
|Procore Technologies Inc||PCOR||0.83|
|Booz Allen Hamilton Holding Corp||BAH||0.80|
|Pagseguro Digital Ltd||PAGS||0.73|
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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