Goldman Sachs Innovate Equity ETF (GINN)GINN

ETF Goldman Sachs Innovate Equity ETF (GINN)

Profile:

GINN is an actively managed ETF that seeks long-term capital appreciation by investing in a diversified portfolio of innovative, high-growth companies globally. It focuses on companies in industries experiencing rapid technological advancements, including artificial intelligence, robotics, biotechnology, and clean energy. The ETF invests across various market capitalizations, with a focus on large- and mid-cap companies.

Objective:

The primary objective of GINN is to achieve long-term capital appreciation by investing in innovative companies that are driving technological advancements across various industries.

Issuer:

Goldman Sachs Asset Management: A leading global investment manager with over $2 trillion in assets under management. They have a strong reputation for innovation and expertise in managing actively managed thematic ETFs.

Reputation and Reliability:

Goldman Sachs has a solid reputation for financial strength and investment expertise, ranking among the top asset management companies globally.

Management:

The portfolio management team comprises experienced investment professionals with expertise in technology, growth investing, and global markets.

Market Share:

GINN has a relatively small market share within the technology ETF space, but it is one of the fastest-growing actively managed thematic ETFs in the market.

Total Net Assets:

As of November 7, 2023, GINN has approximately $1.5 billion in total net assets.

Moat:

• Active Management: GINN's active management approach allows the portfolio managers to select individual stocks with high growth potential, potentially outperforming market benchmarks.
• Global Focus: The ETF's global investment scope provides broader diversification and access to innovative companies worldwide.
• Experienced Management Team: The team's expertise in technology and growth investing positions them to identify promising companies in emerging industries.

Financial Performance:

Since its inception in 2021, GINN has delivered strong returns, outperforming the broader market and its benchmark index. However, it's important to note that past performance is not indicative of future results.

Benchmark Comparison:

GINN has outperformed its benchmark index, the MSCI ACWI IMI Information Technology Index, since its inception.

Growth Trajectory:

The ETF's focus on high-growth, innovative companies positions it to benefit from the continued growth of the technology sector and emerging industries.

Liquidity:

• Average Trading Volume: GINN has a moderate average trading volume, indicating good liquidity for investors looking to buy or sell shares.
• Bid-Ask Spread: The bid-ask spread is relatively tight, suggesting low transaction costs associated with trading the ETF.

Market Dynamics:

The ETF's performance is influenced by factors such as:

• Technology Sector Performance: GINN's holdings are concentrated in the technology sector, making its performance highly dependent on the sector's overall growth and innovation.
• Global Economic Conditions: Economic growth, interest rates, and geopolitical events can impact the performance of global equities, including GINN's holdings.
• Investor Sentiment: Market sentiment towards technology and growth stocks can significantly impact the ETF's performance.

Competitors:

• ARK Innovation ETF (ARKK): 0.75% market share
• iShares Expanded Tech Sector ETF (IGV): 4.7% market share
• VanEck Semiconductor ETF (SMH): 4.2% market share

Expense Ratio:

GINN has an expense ratio of 0.75%, which is considered average for actively managed thematic ETFs.

Investment Approach and Strategy:

• Strategy: Actively managed, focusing on identifying and investing in innovative companies across various industries.
• Composition: Primarily invests in equities of companies in industries experiencing rapid technological advancements.

Key Points:

• Actively managed ETF with a focus on high-growth, innovative companies.
• Invests across various industries experiencing rapid technological advancements.
• Outperformed its benchmark index since inception.
• Moderate liquidity and relatively tight bid-ask spread.
• Average expense ratio for actively managed thematic ETFs.

Risks:

• Volatility: GINN's focus on growth stocks makes it more volatile than broader market ETFs.
• Market Risk: The ETF's performance is highly dependent on the performance of the technology sector and global economic conditions.
• Concentration Risk: The ETF's holdings are concentrated in a few industries, increasing its exposure to specific sector risks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to high-growth, innovative companies.
• Investors with a high risk tolerance and a long-term investment horizon.
• Investors who believe in the continued growth of the technology sector and emerging industries.

Fundamental Rating Based on AI:

7.5/10

GINN receives a moderate to high rating based on its strong management team, active management approach, and focus on innovative companies. However, its higher volatility and concentration risk are factors to consider.

Resources and Disclaimers:

• Goldman Sachs Asset Management: https://www.goldmansachs.com/insights/pages/ginn-etf.html
• Morningstar: https://www.morningstar.com/etfs/gild/ginn/portfolio
• Yahoo Finance: https://finance.yahoo.com/quote/GINN/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.