Goldman Sachs launches three more actively managed thematic ETFs
Goldman Sachs has launched three additional thematic ETFs, intended to compete with Cathy Wood’s ARK.
- Goldman Sachs Future Consumer Equity ETF (GBUY)
- Goldman Sachs Future Health Care Equity ETF (GDOC)
- Goldman Sachs Future Real Estate and Infrastructure Equity ETF (GREI)
The funds will be based on traditional active management. Stocks will be picked by Goldman’s famous research team, who will use a bottom-up approach to build high conviction portfolios based around each theme. Each fund will invest in global shares without geographic restrictions. However US companies play an outsized role in each portfolio.
GBUY will invest in companies catering to millennial consumptions habits. These include online shopping, video games and stronger environmental awareness. Looking at the fund’s portfolio this looks like an online shopping and semiconductors ETF.
GDOC buys healthcare innovators, which is a well-worn path for thematic ETFs at this stage. Of the stocks, 81% come from the US and 95% of them are in the official GICS healthcare sector.
GREI buys infrastructure companies and REITs that service the technology sector. These include data centre REITs like Equinix and broadcast tower operators like American Tower.
These listings bring Goldman’s total number of thematic ETFs to five (the other two are GTEK and GSFP).
The funds charge 0.75%.
Bernie’s commentary – the Goldman way
By reputation the way Goldman Sachs works is that they take ideas from other companies and then execute them slightly better. By reputation Goldman is no country for original thinkers. Rather it is a citadel for highly efficient emulators. Like Japanese craftsmen, they’re masters of refining and perfecting techniques developed elsewhere. And masters at surrounding their craftsmanship in an aura and mystique. Or at least, that’s the reputation.
This all matters because Goldman’s suite of thematic ETFs looks ARK-inspired. It seems like they’ve taken the idea for actively managed transparent ETFs targeting future tech from Cathy Wood. They’re even charging the exact same management fee that Cathy Wood does.
This means that ARK will be in direct competition for at least two of Goldman’s funds.
The nice thing about active management is that there is a fair rule determining outcomes: performance. Whoever performs better gets investor cash. And looking at portfolios (GTEK vs ARKK; ARKG vs GDOC) the two companies are making very different bets.
If I were to bet my own money, you don't bet against the house, so i have to back GS.