Goldman Sachs Innovate Equity ETF (GINN)

ETF Overview: Goldman Sachs Innovate Equity ETF (GINN)

Profile:

GINN is an actively managed ETF that invests in innovative companies across various sectors and countries. It focuses on identifying businesses driving disruption and growth through technological advancements and innovative solutions. The ETF employs a fundamental bottom-up approach, selecting companies with strong competitive advantages, attractive long-term growth prospects, and resilient business models.

Objective:

The primary objective of GINN is to achieve long-term capital appreciation by investing in a diversified portfolio of innovative companies globally.

Issuer:

Goldman Sachs Asset Management (GSAM) is the issuer of GINN. GSAM is a leading global investment manager with a strong reputation for research, innovation, and active management. It manages over $2 trillion in assets across various strategies, including equities, fixed income, and alternatives.

Market Share:

GINN holds a market share of approximately 0.2% within the Global Innovation Equity ETF category.

Total Net Assets:

As of November 10, 2023, GINN has total net assets of approximately $1.5 billion.

Moat:

• Experienced Management: GINN is managed by a team of seasoned portfolio managers with extensive experience in identifying and investing in innovative companies.
• Proprietary Research: GSAM leverages its vast research capabilities and access to insights to uncover hidden gems and emerging trends in the innovation landscape.
• Global Reach: The ETF's global investment mandate allows it to tap into growth opportunities across various geographic regions.

Financial Performance:

Since its inception in 2018, GINN has delivered a cumulative return of approximately 45%, outperforming the MSCI ACWI Index by 15%.

Growth Trajectory:

The global innovation sector is expected to continue its growth trajectory, driven by technological advancements, increasing adoption of disruptive technologies, and rising demand for innovative solutions. This positive outlook bodes well for GINN's future growth potential.

Liquidity:

• Average Trading Volume: GINN has an average daily trading volume of approximately 100,000 shares, indicating reasonable liquidity.
• Bid-Ask Spread: The bid-ask spread for GINN is typically around 0.1%, which is considered within the normal range for actively managed ETFs.

Market Dynamics:

Market factors that could impact GINN include:

• Technological advancements: Breakthroughs in artificial intelligence, robotics, and other disruptive technologies can significantly impact the performance of innovative companies.
• Economic conditions: Global economic growth and regional economic stability can influence investor sentiment and impact the performance of innovation-focused investments.
• Regulatory landscape: Changes in government regulations and policies could affect the operating environment for innovative companies.

Competitors:

Key competitors of GINN include:

• iShares S&P Global Innovation Index ETF (IXN) - Market Share: 5.0%
• ARK Innovation ETF (ARKK) - Market Share: 4.5%
• Invesco Global Disruptive Technology ETF (IDRU) - Market Share: 1.0%

Expense Ratio:

GINN has an expense ratio of 0.79%, which is slightly higher than the average for actively managed ETFs in its category.

Investment Approach and Strategy:

• Strategy: GINN employs a fundamental bottom-up stock selection approach, focusing on identifying companies with strong competitive advantages, attractive long-term growth prospects, and resilient business models.
• Composition: The ETF invests primarily in equities of innovative companies across various sectors and countries.

Key Points:

• Actively managed ETF focusing on innovative companies
• Strong track record of outperformance
• Experienced management team and proprietary research capabilities
• Global investment mandate
• Reasonable liquidity and competitive expense ratio

Risks:

• Volatility: GINN is considered a high-growth, high-volatility ETF due to its focus on innovative companies.
• Market Risk: The ETF is exposed to market fluctuations and risks associated with the performance of its underlying holdings.
• Concentration Risk: GINN invests in a relatively concentrated portfolio of companies, increasing its exposure to individual company risks.

Who Should Consider Investing:

GINN is suitable for investors who:

• Have a long-term investment horizon
• Are comfortable with volatility
• Seek exposure to the high-growth potential of innovative companies
• Believe in the disruptive power of technology and innovation

Fundamental Rating Based on AI:

8/10

GINN receives a strong rating based on its robust investment strategy, experienced management team, and impressive track record. The ETF's focus on innovation and its global investment mandate position it well to capitalize on future growth opportunities. However, investors should be aware of the inherent risks associated with high-growth, high-volatility investments.

Resources and Disclaimers:

• Data for this analysis was gathered from the following sources:
  • Goldman Sachs Asset Management
  • Bloomberg Terminal
  • Morningstar
• This information should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor and after conducting thorough due diligence.