Alternative Investments/AI: A New “Disruptively Themed” Index From Goldman Sachs And Solactive

The Solactive Innovative Global Equity Index will serve as the underlying for the new Goldman Sachs Innovate Equity ETF.

In August, Goldman Sachs Asset Management (GSAM) announced that its trustees had approved the merger of five thematic ETFs into a single fund – the Goldman Sachs Innovate Equity ETF (NYSEARCA: GINN) – on an equal-weighted basis in a single ticker solution. (ETF Express)

The five thematic Goldman Sachs ETFs are the Data-Driven World ETF, Finance Reimagined ETF, Human Evolution ETF, Manufacturing Revolution ETF, and New Age Consumer ETF.

The five themes encompass 23 subthemes, including, for example, Artificial Intelligence, Blockchain, Robotics, Genomics, and E-Commerce.

At the time, GSAM said the move was in response to demand for a single product that provided equity exposure to “technological innovation and secular growth.”

The Innovate ETF would track the Solactive Innovative Global Equity Index.

Meanwhile, the reorganization of the five ETFs has taken effect on November 9.

New index launched

Solactive announced last week the development, with GSAM, of the ARTIS-based Solactive Innovative Global Equity Index. It would serve as the index for the new, merged Goldman Sachs ETF.

The Index itself will comprise five equally -weighted indices that include companies from the topics of ‘Data-Driven World’, ‘Finance Reimagined’, ‘Human Evolution’, ‘Manufacturing Revolution’, and ‘New Age Consumer.’

Furthermore, Solactive will use ARTIS, its Natural Language Processing Engine, for the selection of the constituents of the new index.

ARTIS utilizes advanced algorithms to parse high volumes of public documents evaluating companies’ exposure to various themes or topics.

“Technological progress is inevitable, and what seemed unimaginable years ago is, today, something we cannot live without,” said Timo Pfeiffer, Chief Markets Officer at Solactive. “Therefore, we think it is crucial to create an index that reflects societal and technological changes from early on.”

Fund facts

As of November 13, 2020, the ETF had net assets of about US$ 309 million.

Its market price as of that date was US$ 50.29.

It charged a net expense ratio of 0.50%.

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