Research > ETFs > ETF / ETP Commentary > 

Goldman Sachs Launches GTEK, a Future Tech Leaders Equity ETF

On Thursday, Goldman Sachs Asset Management announced the Goldman Sachs Future Tech Leaders Equity ETF (GTEK) launch. GTEK is a fully transparent, actively managed equity ETF that will generally invest in listed technology companies with market capitalizations of less than $100 billion across both developed and emerging markets. Goldman Sachs intends to invest in the fund alongside its clients.“With almost a quarter of S&P 500 market capitalization in the top 1% of stocks, many investors are overexposed to mature US mega-cap technology companies,” said Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management. “We believe the dominant tech franchises in 10 years will be very different from the platforms we all know today. We are working diligently on behalf of our clients to try and identify future tech leaders with robust growth rates and the potential for outsized returns.”Being at the forefront of technological innovation is critical to success in a digital world, where the pace of change continues to accelerate. “Most of the innovation we’ve seen in tech over the past few decades has been concentrated in the US and centered around a few companies,” said Sung Cho, portfolio manager of GTEK, “but we believe we’re at a key inflection point, with tech innovation expanding to other geographies and down the market capitalization spectrum.” GTEK will seek to identify potential future tech leaders through active, bottom-up security selection with a disciplined approach to valuation. “GTEK will aim to provide exposure to our high conviction technology investment ideas globally, in a way that may complement investors’ existing portfolios,” said Brook Dane, portfolio manager of GTEK. “We see many exciting opportunities in areas including smart components, digital transformation, fintech, and cybersecurity. The current health pandemic has further accelerated the digitization trend, creating additional secular growth tailwinds, which we want to help investors get on the right side of to position their portfolios for the future.” By investing in a fully transparent active ETF, investors may benefit further from being able to access these opportunities through an innovative wrapper. “By combining the expertise of our Fundamental Equity investors with the benefits of the ETF vehicle – including greater tax efficiency, transparency and trading flexibility than traditional mutual funds – we can provide our clients with compelling, tax-efficient investment solutions,” said Mike Crinieri, global head of ETFs within Goldman Sachs Asset Management. The launch of GTEK expands the firm’s existing suite of thematic ETFs designed to help investors position their portfolios on the right side of disruption by providing focused exposure to long-term secular growth trends. Goldman Sachs Asset Management’s Fundamental Equity business manages over $20 billion in thematic equity strategies and has invested in dedicated technology equity strategies for over 20 years. GTEK, the GS Future Planet Equity ETF (GSFP), and the GS Innovate Equity ETF (GINN) make the firm’s thematic equity strategies accessible to U.S.-based investors in an innovative wrapper. The fund is an actively managed ETF, which trades on an exchange like other publicly traded securities, and it will trade on NYSE Arca, Inc. under the ticker symbol "GTEK.” The fund is not an index fund and does not seek to replicate the performance of a specified index.For more information, visit www.gsam.com.For more news, information, and strategy, visit the Future ETFs Channel.

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.