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Artificial Intelligence is an area of computer science that focuses the creation of intelligent machines that work and react like humans. See our independently curated list of ETFs to play this theme here.
Blockchain technology allows for a recorded incorruptible decentralized digital ledger of all kinds of transactions to be distributed on a network. See our independently curated list of ETFs to play this theme here.
ESG Investing is the consideration of environmental, social and governance factors alongside financial factors in the investment decision–making process. See our independently curated list of ETFs to play this theme here.
Marijuana is often referred to as weed, MJ, herb, cannabis and other slang terms. It’s the green or gray dried flowers of Cannabis sativa. See our independently curated list of ETFs to play this theme here.
Given the name, investors considering the Goldman Sachs Human Evolution ETF (GDNA) can be forgiven for wondering if the portfolio includes Cyberdyne Systems, Incite Inc., and Delos. (Dystopian pop-culture references to fictional companies in the Terminator movies and HBO’s Westworld series.) It doesn’t. GNDA invests largely in health and biotechnology stocks, tracking a bespoke index that tries to provide “exposure to the beneficiaries of technological innovation, regardless of sector, geography or market capitalization.” The investments are selected and weighted “by a function of ‘thematic’ beta.’” Top holdings include Intuitive Surgical Inc., Abbott Laboratories, Medtronic, and Johnson & Johnson.
GDNA’s management fee is high compared to ultra-low-cost plain-vanilla index funds, but it isn’t outrageous for smart-beta funds or niche products. One plain-vanilla index option is the iShares Genomics Immunology and Healthcare ETF (IDNA), which isn’t much cheaper than GDNA. For investors who want access to the sector and don’t mind paying a bit extra, there’s also actively-managed ETFs such as the ARK Genomic Revolution ETF (ARKG). Run by the stock-picking team at ARK Invest, ARKG absolutely trounced GDNA’s performance in the first five months of 2020, a tumultuous period marked by pandemic shutdowns and social unrest.
GDNA is one of five ETFs that Goldman launched in 2019 with indexes designed by Motif Investing Inc. The indexes selected stocks using artificial intelligence and machine learning. Goldman worked with Motif to design indexes that aim to identify companies that fit with broad themes that Goldman’s money managers thought would drive growth. (The “Motif” moniker was removed from the fund name in May 2020 when Motif dropped out as the index provider.) The funds were yet another example of Wall Street’s increased use of sophisticated automation. Computers read faster than human analysts, quickly scouring regulatory filings, company reports and news stories for information on a company’s prospects. Using AI and machine learning isn’t that much of a divergence — after all, most factor funds and smart-beta ETFs are really just attempts to codify investing strategies employed by human stock pickers. Whether it’s a plain-vanilla index or something more sophisticated, index methodology is basically just programmed code that tells the index what to buy and sell.
Historical Trading Data
1 Month Avg. Volume11,395
3 Month Avg. Volume9,169
Alternative ETFs in the Health & Biotech Equities Category
5 Day Net Flows:
0
1 Month Net Flows:
3.24 M
3 Month Net Flows:
20.75 M
6 Month Net Flows:
27.8 M
1 Year Net Flows:
40.21 M
3 Year Net Flows:
44.03 M
5 Year Net Flows:
44.03 M
10 Year Net Flows:
44.03 M
Realtime Rating
The adjacent table gives investors an individual Realtime Rating for GDNA on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Health & Biotech Equities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.
Copyright MSCI ESG Research LLC [2018]. All Rights Reserved. MSCI ESG Research LLC’s (“MSCI ESG”) Fund Metrics products (the “Information”) provide environmental, social and governance data with respect to underlying securities within more than 23,000 multi-asset class Mutual Funds and ETFs globally. MSCI ESG is a Registered Investment Adviser under the Investment Advisers Act of 1940. MSCI ESG materials have not been submitted, to nor received approval from, the US SEC or any other regulatory body. None of the information constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. All Information is provided solely for your internal use, and may not be reproduced or redisseminated in any form without express prior written permission from MSCI. Neither MSCI ESG nor any of its affiliates or any third party involved in or related to creating any Information makes any express or implied warranties, representations or guarantees, and in no event will MSCI ESG or any such affiliate or third party have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) relating to any Information. More information on MSCI ESG Fund Metrics, provided by MSCI ESG Research LLC, can be found at https://www.msci.com/esg-fund-metrics.
Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please see disclaimer.
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