Goldman ETF targets ARK-governed industry

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Illustration by Elias Stein


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Goldman Sachs

takes on Cathie Wood in the innovation-driven ETF market. Goldman Sachs Asset Management unveiled on Thursday


Goldman Sachs Future Tech Leaders Equity,

an actively managed fund that invests in technology companies with market capitalizations of less than $ 100 billion. The fund trades on the NYSE under the ticker GTEK.

In a call with reporters, portfolio managers Sung Cho and Brook Dane noted that the fund is a version of a strategy Goldman has used outside of the United States, with around $ 5 billion under management. They said investors should diversify their tech holdings among the five mega-caps that now make up about a quarter of the S&P 500—


Apple
,


Alphabet
,


Amazon.com
,


Facebook
,

and


Microsoft
.

The new fund resembles Wood’s ARK ETFs, in particular,


ARK Innovation,

which has some $ 25 billion in assets. But there are differences. Goldman targets small and mid cap stocks, which would exclude some ARK names including


You’re here
.

Goldman also owns nearly half of its stakes in non-U.S. Companies, 25 to 35 percent of which are in emerging markets.

The fund will target cloud computing, online entertainment, semiconductors and fintech. The leaders cited


Atlassian
,

an Australian provider of workflow management software, and


Kingdee International Software
,

a Chinese company that sells cloud-based enterprise resource planning software;


Adyen
,

an Amsterdam-based payment platform;


Bill.com
,

which sells financial software for mid-sized businesses;


Palo Alto Networks,

a security software company, and




Entégris
,

which manufactures chemicals and specialty materials for semiconductors.

Last week
Back to school

Blue September is back. Inflation cooled, but stocks fell as producer prices outpaced consumer prices. Rising energy prices fueled a midweek rebound, which then fizzled out. The Federal Reserve announced an ethics review of senior officials trading in stocks, while an investigation found that the World Bank had altered China’s ranking data to support an increase in funding. Over the week, the Dow Jones index slipped less than 0.1% to 34,584.88; the S&P 500 lost 0.6% to 4,432.99; and the Nasdaq Composite fell 0.5% to 15,043.97.

Oil price 101

OPEC raised its forecast for oil demand in 2022 by nearly one million barrels per day, but reduced supply estimates for 2021 by 200,000 per day, blaming Hurricane Ida. For its part, the International Energy Agency said Ida would reduce supply this year by 150,000 barrels per day, but the Delta variant would reduce demand by 100,000. Prices have increased.

Tax planning

House Democrats have proposed changes to a tax reform program, seeking a lower corporate tax increase, 26.5% instead of the White House’s 28%, and a lower levy on corporate taxes. capital gains, 25%, rather than 39.6%. However, they also included a 5% surtax on individual income over $ 5 million, which the White House had not included. House Democrats have also compromised on voting rights, in hopes of attracting GOP votes and possibly staging a clash over filibustering in the Senate.

Say hello to 13


Apple
‘s

The “California streaming” event – it was virtual again – featured four updated iPhones (the iPhone 13s), new iPads and an Apple Watch. The day before the deployment, Apple said it fixed a software flaw that Israeli cybersecurity firm NSO exploited through its Pegasus monitoring tool.

Ant under attack

China is not done with Ant Group yet. Regulators had ordered Ant to split the credit card and unsecured loan units into a separate entity with new shareholders. Now officials have ordered the unit to create a separate app from Ant and hand over user data to a company that is part-owned by the government. Chinese officials are also scrutinizing Macau’s casinos, racking up inventory and fears are spreading that real estate giant China Evergrande will default on $ 89 billion in debt after hiring restructuring advisers.

Annals of negotiation

The Wall Street Journal reported that Invesco was talking about a merger with the State Street asset management business … TransUnion has agreed to buy the information services firm Neustar, owned by Golden Gate Capital, for $ 3.1 billion …


Canadian Pacific Railway

won


Kansas City South

for $ 27 billion, beating


Canadian National Railway

… Owner of TurboTax


Intuit

said he would pay $ 12 billion for Mailchimp email marketing, his biggest deal ever …


Goldman Sachs

agreed to buy the lender at the point of sale


Green sky

for $ 2.2 billion.

Write to Eric J. Savitz at [email protected]


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