Quick and easy money. That’s what many investors are still looking for in stocks, especially at a time when inflation – or even stagflation – scares capital. Technology continues to be the favorite vehicle for this type of betting, and Goldman Sachs has decided to give it a twist to get on one of the fashionable trains: disruptive technology.
The investment house has launched an exchange-traded fund (ETF) that will be dedicated to technology companies with a capitalization of less than 100 billion dollars, which leaves out the largest in the sector such as Apple, Microsoft, Amazon or Facebook. In fact, this filter would not allow the manager to look at the top 80 stocks on the S&P 500.
In addition, this Goldman Sachs Future Tech Leaders Equity ETF, which is traded under the GTEK ticker, has broadened the geographic focus compared to what is usual in other exchange-traded funds that follow the sector, avoiding looking almost exclusively at US companies.
“With nearly a quarter of the S&P 500’s market capitalization in the top 1%, many investors are overexposed to mature, large-cap US tech companies,” said one of the Goldman Sachs directors in charge of the fund, Katie Koch.
The investment firm, convinced that technological innovation will cross borders and diminish the American role, will take advantage of its knowledge of all markets thanks to the experts to be able to diversify the composition of the fund at a geographical level and that half of it is not U.S.
In this regard, they consider that the long-term future bets will be different from those that dominate the market today, which is why they are looking for companies with “robust growth rates and the potential for ample returns.”
The ETF currently has 66 stocks in the portfolio, led by Marvell Technology, MercadoLibre, HubSpot, Workday and Kingdee International.
All these premises contrast with the star fund of Ark Invest, by technology guru Cathie Wood, in which Tesla plays a prominent role.
Days after its premiere, the GTEK fund is trading at around $ 40.5, practically the price of its debut.