The actively managed equity ETF that will invest in tech companies worth less than $100 billion comes as Goldman and other big asset management firms look to target the next generation of tech-savvy investors.
“With almost a quarter of S&P 500 market capitalization in the top 1% of stocks, many investors are overexposed to mature US mega cap technology companies,” Katie Koch, co-head of the fundamental equity business within Goldman Sachs asset management said in a Thursday statement.
She added that Goldman believes “the dominant tech franchises in 10 years will be very different from the platforms we all know today,” and that the company is “working diligently … to try and identify future tech leaders with robust growth rates and the potential for outsized returns.”
The ETF aims to identify emerging leaders in tech that have the potential to become big players over time.
“GTEK will aim to provide exposure to our high conviction technology investment ideas globally, in a way that may complement investors’ existing portfolios,” Brook Dane, portfolio manager of the Fund said in a statement. “We see many exciting opportunities in areas including smart components, digital transformation, fintech, and cybersecurity.”
The COVID-19 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,” Dane said.
The fund will trade on the NYSE Arca, Inc., under the ticker symbol GTEK.