Goldman Sachs offers a lineup of ETFs providing exposure to industry disruption, looking beyond backward-looking benchmarks to identify innovative, attractively-valued companies aligned with durable secular growth themes.
The Goldman Sachs Future Tech Leaders ETF (GTEK) offers investors actively managed exposure to growing technology companies that are believed to drive tech innovation around the world.
GTEK draws on a deep bench of over 80 experienced investors around the world to conduct an active, bottom-up security selection to build a high-conviction portfolio of potential next generation tech leaders, according to ETF Database. The fund uses strong valuation discipline to identify the firm’s highest-conviction technology investment ideas globally, across both developed and emerging markets.
The firm believes there is a disconnect between where investors are positioned in technology companies today and where the best potential investment opportunities exist over the next decade.
Since the fund focuses on growth potential, it notably excludes mega-cap tech companies that dominate the industry and only invests in globally listed firms with less than $100 billion market caps. According to ETF Database, while GTEK concentrates its investments in the information technology sector, it may also include tech-enabled firms in communication services, internet & direct marketing retail, and healthcare.
The fund advisor uses fundamental metrics to screen for quality and growth, such as those indicating sustainable free cash flow generation, to select securities for the fund. GTEK also considers company valuation and may integrate ESG factors in the selection process, according to ETF Database.
Current holdings include ON Semiconductor Corporation (ON), Marvell Technology, Inc (MRVL), Palo Alto Networks Inc (PANW), Cadence Design Systems Inc (CDNS), and Tokyo Electron Ltd (8035), according to ETF Database.
The fund charges an expense ratio of 75 basis points.
For more news, information, and strategy, visit the Future ETFs Channel.