Goldman Sachs Asset Management today announced the launch of the Goldman Sachs Future Planet Equity ETF (“GSFP” or the “Fund”). GSFP is the first transparent, actively managed equity ETF launched by Goldman Sachs and expands the firm’s existing suite of thematic ETFs designed to help investors position their portfolios on the right side of disruption by providing focused exposure to long-term secular growth trends. Goldman Sachs intends to invest in the Fund alongside its clients.
“Rapid change is disrupting the status quo across industries and around the world. We believe we are on the cusp of a sustainability revolution that could have the scale of the industrial revolution and the speed of the digital revolution. In our view, this may give rise to a unique wealth creation opportunity for investors over the next decade,” said Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management. “The Fund will invest in companies that are on the right side of the climate transition and have a positive impact on our future planet.”
“Climate transition is not only a central issue for markets and economies but is also having a greater real-time impact on individuals, families, and communities around the world,” said Margaret Anadu, global head of sustainability and impact for Goldman Sachs Asset Management. “This ETF creates an opportunity for a broader set of investors to align their portfolio with this key trend.”
The Fund intends to invest in companies that seek to provide solutions to environmental problems aligned with five key themes: clean energy, resource efficiency, sustainable consumption, the circular economy and water sustainability. GSFP will conduct active, bottom-up security selection to target companies with the potential to drive more sustainable practices and deliver strong returns across various sectors, geographies and market capitalizations.
“We believe we’re at a key inflection point: for the first time ever, governments, corporates and consumers are all aligned in driving a global sustainability revolution, but the scale of the challenge is so large that a holistic approach is necessary,” said Alexis Deladerrière, portfolio manager of GSFP and head of international developed equity markets for Goldman Sachs Asset Management’s Fundamental Equity team. “GSFP will seek to invest in companies providing solutions to a variety of environmental challenges that are critical to supporting our planet for future generations.”
The Fund also provides the benefits of fully transparent, active management and will be managed by experienced fundamental investors with a disciplined valuation framework.
Goldman Sachs Asset Management’s Fundamental Equity business manages $19 billion in thematic equity strategies. Both GSFP and the GS Innovate Equity ETF (GINN), a rules-based thematic equity ETF, make the firm’s thematic equity strategies accessible to U.S.-based investors in an innovative wrapper.
“By combining the expertise of our fundamental equity investors with the benefits of the ETF wrapper, we are able to provide our clients with an innovative, tax-efficient investment solution,” said Mike Crinieri, global head of ETFs within Goldman Sachs Asset Management. “ETFs seek to provide greater tax efficiency, transparency and trading flexibility than traditional mutual funds.”
GSFP is an actively managed ETF, which is a fund that trades like other publicly-traded securities, and will trade on NYSE Arca, Inc. under the ticker symbol "GSFP”. The Fund is not an index fund and does not seek to replicate the performance of a specified index.
For more information on GS Future Planet Equity ETF visit gsam.com/futureplanet
About Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 20211. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.
1Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion. AUS figure as of March 31, 2021.
The Goldman Sachs Future Planet Equity ETF (the “Fund”) seeks long-term capital appreciation. The Fund is an actively managed exchange-traded fund. The Fund pursues its investment objective by primarily investing in companies that the Investment Adviser believes are associated with seeking to address environmental problems. The Fund’s investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors or governments and/or general economic conditions. The Fund’s thematic investment strategy limits the universe of investment opportunities available to the Fund and may affect the Fund’s performance relative to similar funds that do not seek to invest in companies exposed to such themes. The Fund relies on the Investment Adviser for the identification of companies the Investment Adviser believes are associated with seeking to address environmental problems, and there is no guarantee that the Investment Adviser’s views will reflect the beliefs or values of any particular investor or that companies in which the Fund invests will be successful in their efforts to offer solutions that generate a positive environmental outcome. Because the Fund may invest heavily in specific sectors (for example, the industrials, materials and technology sectors), the Fund is subject to greater risk of loss as a result of adverse economic, business or other developments affecting such sectors. Foreign and emerging markets investments may be more volatile and less liquid than investments in U.S. securities and are subject to the risks of currency fluctuations and adverse economic, social or political developments. Such securities are also subject to foreign custody risk. The securities of mid- and small-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. The Fund is “non-diversified” and may invest a larger percentage of its assets in fewer issuers than “diversified” funds. In addition, the Fund may invest in a relatively small number of issuers. Accordingly, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio and to greater losses resulting from these developments.
Fund shares are not individually redeemable and are issued and redeemed by the Fund at their net asset value (“NAV”) only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETFs. ALPS Distributors, Inc. is unaffiliated with Goldman Sachs Asset Management.
A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman Sachs & Co. LLC by calling (retail - 1-800-526-7384) (institutional – 1-800-621-2550). Please consider a fund's objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. The summary prospectus, if available, and the Prospectus contains this and other information about the Fund.
The Investment Company Act of 1940 (the “Act”) imposes certain limits on investment companies purchasing or acquiring any security issued by another registered investment company. For these purposes the definition of “investment company” includes funds that are unregistered because they are excepted from the definition of investment company by sections 3(c)(1) and 3(c)(7) of the Act. You should consult your legal counsel for more information.
Transparency allows investors to view their portfolio holdings on a daily basis. Tax Efficiency refers to low portfolio turnover which can help manage the impact of capital gains taxes. Right side of disruption refers to companies that in our view are aligned with key secular growth trends and/or are creating new innovative solutions.
The Fund is newly organized and has no operating history.
Goldman Sachs does not provide accounting, tax or legal advice.
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NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
ALPS Control: GST1544 ED 7/15/2022
Compliance Code: 246968-OTU Date of first use: 7/15/2021
Leslie Shribman Tel: 212-902-5400