has apparently decided to acquire ARK Invest in the market for innovation-oriented exchange traded funds.
Thursday morning, Goldman Sachs Asset Management is the unveiling
Goldman Sachs Future Tech Leaders Stocks
ETF, an actively managed fund that will invest in publicly traded technology companies with market caps below $100 billion, in both developed and emerging markets. The fund, which opens Thursday, will trade on the NYSE under the ticker GTEK.
Speaking to reporters, portfolio managers Sung Cho and Brook Dane noted that the new fund is a version of a strategy Goldman has managed for investors outside the US, with about $5 billion now under management. Their view is that investors should diversify their investments in technology away from the five megacaps that now make up about a quarter of the
(ticker: AAPL), alphabet (GOOGL),
(MSFT) — and looking for companies that will drive innovation in the years to come.
The new fund is reminiscent of the popular ARK ETFs created by high-profile portfolio manager Cathie Wood, and in particular the
ETF (ARKK), a fund with approximately $25 billion in assets. But there are clear distinguishing points.
For starters, the new Goldman fund focuses on small-cap and mid-cap stocks. That would exclude some names in the ARK fund, which has nearly 10% of its assets in Tesla (TSLA). The Goldman fund also plans to cast a broad network, with nearly half holdings in companies outside the US and 25% to 35% in emerging markets.
“Many investors are overexposed to mature US mega-cap technology companies,” Katie Koch, co-head of Fundamental Equity business at Goldman Sachs Asset Management, said in a statement. “We believe that the dominant tech franchises in 10 years will be very different from the platforms we all know today. We work diligently on behalf of our clients to identify future technology leaders with robust growth rates and the potential for outrageous returns.”
The Future Tech Leaders fund plans to invest in areas such as cloud computing, online entertainment, semiconductors and fintech, the portfolio managers said.
When asked about the stocks in the portfolio, the managers gave some examples. In business software they quoted:
(TEAM), an Australia-based supplier of workflow management software, and
Kingdee International Software
(KGDEY), a Chinese company that sells cloud-based enterprise resource planning software. Their fintech betting includes Adyen (ADYEY), an Amsterdam-based payment platform company, and
(BILL), which provides financial software for medium-sized businesses. Other investments include the security software company
Palo Alto Networks
(ENTG), which supplies specialty chemicals and materials to the semiconductor market.
Write to Eric J. Savitz at firstname.lastname@example.org