Goldman Sachs Asset Management (GSAM) has introduced a suite of five thematic equity ETFs investing in listed companies that are at the vanguard of innovation – either by way of product development or adoption.
The funds provide exposure to themes that GSAM believes are pivotal to transformational changes to the global economy
The funds are linked to indices from Motif Capital Management, a provider of systematic, data-driven indices and strategies, that are diversified across sector, market cap, and geography.
The indices cover themes that GSAM and Motif believe are pivotal to transformational changes to the global economy: data-driven world, finance reimagined, human evolution, manufacturing revolution, and new-age consumer.
“Technology is impacting every aspect of our daily lives,” said Mike Crinieri, GSAM’s Global Head of ETF Strategy. “It has grown from a single sector to a key driver of every sector. We are delighted to offer investors the ability to invest in companies driving these transformational changes.”
Constituents for each index are selected from a potential pool of global developed market stocks with at least $500 million in assets under management and a minimum average daily traded volume of $1m.
Motif’s rules-based methodology determines each eligible stock’s ‘thematic beta’ – the firm’s exposure to the transformational theme in question. In determining thematic beta, Motif looks to traditional and alternative data sources including regulatory filings, academic papers, and patent filings.
Each index selects approximately 120 stocks with the highest thematic beta and weights these constituents so as to sharpen the exposure to the underlying theme subject to an individual cap of 5% and a floor of 0.25%.
“We’re bringing together human insight and data science by leveraging innovation to invest in innovation,” said Hardeep Walia, CEO and Founder of Motif. “Our proprietary approach identifies the companies that are creating or adopting innovative technology and quantifies their relevance. We’re excited to work with one of the world’s leading asset managers to deliver these unique investment products.”
The funds are as follows:
The Goldman Sachs Motif Data-Driven World ETF (GDAT US) tracks companies poised to benefit from the increasing digitization of data. Stocks are analyzed along five sub-themes including internet of things, data infrastructure, big data, cybersecurity, and artificial intelligence.
The Goldman Sachs Motif Finance Reimagined ETF (GFIN US) tracks companies poised to benefit from developments in the delivery of financial services. Relevant sub-themes include the digitization of finance, the migration to low-cost passive investments, and blockchain technology.
The Goldman Sachs Motif Human Evolution ETF (GDNA US) tracks health care companies that are most likely to benefit from the development of new medical treatments along the sub-themes of precision medicine, genomics, life extension, robotic surgery, and consumer health care.
The Goldman Sachs Motif Manufacturing Revolution ETF (GMAN US) tracks companies incorporating new technologies to optimize the manufacturing process as well as firms involved in the manufacture of new products across the robotics, 3D printing, autonomous vehicles, drones, and clean energy sub-themes.
The Goldman Sachs Motif New Age Consumer ETF (GBUY US) tracks companies most likely to benefit from recent structural changes in the consumer market across demographics, technology, and preferences. Relevant sub-themes include e-commerce, social media, online gaming, online music and video, experiences on goods, and the evolution of education, health, and wellness.
The funds have been listed on NYSE Arca and come with expense ratios of 0.50%.