Goldman Sachs Looks to Reinvent Technology ETFs as Themed Funds
Bloomberg – Goldman Sachs Group Inc. wants to revolutionize tech investment with a clutch of new exchange-traded funds.
The New York-based bank’s money management arm is starting five ETFs that focus on industries where technological innovation is driving growth, such as data, finance and manufacturing, according to a statement. The new funds, which all charge $5 for every $1,000 invested, start trading Thursday.
“There’s no such thing as the technology industry now, every industry is about technology,” Mike Crinieri, Goldman Sachs Asset Management’s global head of ETF strategy, said in an interview. “These products are really focusing on who’s driving advances in innovation in these different sectors of the market.”
Goldman is not the only money manager trying to change how investors think about technology companies. State Street Corp. now has six funds focused on so-called new economies — including final frontiers, like outer space — while Ark Investment Management has outperformed stock ETFs for the last three years with two innovation-oriented funds.
Thematic ETFs have evolved from a niche business into a growing focus for large asset managers, not least because these funds can charge more than a broad stock fund. While ETFs charge an average $4.80 for every $1,000 invested, thematic funds cost as much as $9.50 and average $6.10.
The new funds are:
Goldman Sachs Motif Data-Driven World ETF (Ticker: GDAT) Goldman Sachs Motif Finance Reimagined ETF (Ticker: GFIN) Goldman Sachs Motif Human Evolution ETF (Ticker: GDNA) Goldman Sachs Motif Manufacturing Revolution ETF (Ticker: GMAN) Goldman Sachs Motif New Age Consumer ETF (Ticker: GBUY)