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Goldman Sachs Launches ETF for Non-Megacap Tech Stocks
By: TheStreet | September 16, 2021

• 'Many investors are overexposed to mature U.S. megacap technology companies,' Goldman official Katie Koch says.

Goldman Sachs (GS) said Thursday that it’s launching the Goldman Sachs Future Tech Leaders Equity ETF to give investors an alternative to U.S. megacap technology names.

The fund is transparent, actively managed and will generally invest in listed technology companies with market capitalizations of less than $100 billion. GTEK managers will look at both developed and emerging markets.

“With almost a quarter of S&P 500 market capitalization in the top 1% of stocks, many investors are overexposed to mature U.S. megacap technology companies,” said Katie Koch, co-head of Goldman Sachs Asset Management’s fundamental equity business.

“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.”

Goldman Sachs intends to invest in the fund alongside its clients. The fund is scheduled to start trading today on the New York Stock Exchange under the ticker symbol GTEK.

“Most of the innovation we’ve seen in tech over the past few decades has been concentrated in the U.S. 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.”

In other tech stock news, Cathie Wood’s Ark Investment sold 81,600 shares of electric-vehicle titan Tesla (TSLA) on Wednesday, valued at $61.7 million at the close. Tesla recently traded at $750.55, down 0.7%.

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