Goldman Sachs Innovate Equity ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in momentum exposure and quality exposure compared with category peers. Momentum is the premise that stocks that have recently outperformed will continue to do so. With low momentum exposure, the portfolio is holding stocks that managers believe to be undervalued. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

NVIDIA

Alphabet

Amazon

Microsoft

Apple

Eli Lilly

Advanced Micro Devices

Tesla

Broadcom

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Goldman Sachs Innovate Equity ETF earns an Above Average Process Pillar rating. The main driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Low costs across its parent firm's funds, whose fees, on average, rank in the middle quintile of their respective category, also bolster the rating. The pattern of low expenses at the firm indicates that it is focused on delivering strong results for investors. Lastly, the process is limited by the small size of its portfolio management team of one.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive Innovative Global Equity Index.  The fund seeks to achieve its investment objective by investing at least 80% of its assets in securities included in its index, and in depositary receipts representing securities included in its index and in underlying stocks in respect of depositary receipts included in its index. The index is designed to deliver exposure to companies that may benefit from technological innovation and the resulting changes in the economy across five key themes that are potential drivers of changes in the economy. 

 The portfolio is overweight in healthcare and consumer cyclical relative to the category average by 20.4 and 10.2 percentage points, respectively. The sectors with low exposure compared to category peers are technology and basic materials, with technology underweighting the average portfolio by 48.1 percentage points of assets and basic materials similar to the average. The portfolio is composed of 471 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 15.5% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category’s 52.3% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 45% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

Goldman Sachs’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. The fund takes a solo manager approach, with Raj Garigipati as the only listed manager at the helm, who brings eight years of portfolio management experience to the table. They manage a total of 20 strategies, with solid long-term prospects. The strategies average a Bronze asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate. With only one manager listed on the strategy, the passive strategy is vulnerable to key-person risk. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

Goldman Sachs Asset Management heads into an uncertain direction on multiple fronts, underpinning its Average Parent rating.
GSAM has long struggled with personnel turnover, with a steady degree of analyst departures and additions coinciding with leadership reshufflings over the past few years that includes the September 2022 departure of equity head Katie Koch. Meanwhile, parent company Goldman Sachs elected to merge its asset management and wealth management units in October 2022, reversing a decision to split them in 2020, and assigned Marc Nachmann to lead the unit. Although he is a longtime Goldman veteran, most of his prior experience has been with the firm’s investment bank. Potentially complicating his remit is the firm’s December 2021 acquisition of NN IP, whose traditional and sustainable-investing branches could add capabilities but will take time to integrate. Bolstering the firm’s sustainability credentials could be especially pressing given the SEC’s November 2022 fining of GSAM for past failings in its ESG-related operations. 
GSAM has some strengths worth highlighting. Portfolio-manager ownership statistics across the firm’s U.S. lineup have improved dramatically since the firm instituted a deferred compensation program of fund shares in early 2020, and GSAM has compelling capabilities within its quantitative equity franchise.

Parent

Goldman Sachs Innovate Equity ETF

GINN tracks an index that selects companies globally, believed to benefit from technological innovation and changes in the economy across five themes: data, finance, human evolution, manufacturing, and shifts with consumers.

Global X Artificial Intelligence & Technology ETF

Qraft AI-Enhanced US Large Cap Momentum ETF

iShares Robotics & Artificial Intelligence Multisector ETF

Neuberger Berman Disrupters ETF

Teucrium Aila Long-Short Agriculture ETF

Invesco QQQ

SPDR S&P 500 ETF Trust

While bonds have been the hottest ETF asset class in 2023, for the broader investment community, this is the year of AI investing. Just as many people no longer spell out “exchange traded funds” for ETFs, AI has become shorthand for artificial intelligence.

AI's Future Is Fast Approaching

Harsh treatment of growth stocks this year is trying investors' patience, but the silver lining is that an assortment of stocks that are usually richly valued now look the opposite. Some exchange traded funds more than others help investors take a broad approach to undervalued stocks.

Is GINN Now in the Bargain Bin?

Stocks recently slipped into a bear market as highlighted by a year-to-date decline of 20% for the S&P 500. Some benchmarks are performing significantly worse than that.

GINN Has Goods for Bear Market Protection

This year, disruptive growth stocks are being, well, disrupted by a hostile interest rate and recession fears, among other factors. Those near-term headwinds run counter to what remain compelling long-term outlooks for concepts ranging from cloud computing to healthcare to innovation to e-commerce and much more.

Here's What Can Stabilize Growth Stocks

In this market environment, investors of all stripes should be prioritizing companies with strong balance sheets. For those with longer time horizons, evaluating some beaten-up names with disruptive growth traits could be rewarding.

An ETF With Strong Balance Sheet Stocks, Long-Term Opportunities

Technology and disruptive growth are investing concepts that market participants aren't particularly fond of at the moment. However, they should be cautious about throwing babies out with the bathwater.

An ETF With Plenty of Disruptive Tech Vibes

The Goldman Sachs Innovate Equity ETF (GINN) is up over 3% by mid-afternoon Thursday as all major U.S. indexes rally.  U.S. stock indexes increased in a broad-based rally on Thursday after upbeat annual forecasts from several retailers, while the U.S. economy contracted in the first quarter, easing concerns about aggressive interest rate hikes, Reuters reported.

GINN Increases as Major U.S. Indexes Rally

ARK Innovation ETF

ALPS Disruptive Technologies ETF

Disruptive technology is back in the spotlight, with well-known funds such as the ARK Innovation ETF (ARKK) and the Goldman Sachs Innovate Equity ETF (GINN) raking in double digit returns over the past week after an extended period of negative returns. The ALPS Disruptive Technologies ETF (DTEC), however, is seeing the same rebounding strong returns [.

Disruptive Technology Investing Is Rebounding

Investors are understandably jittery about the technology sector's disappointing start to 2022, but it often pays to take a step back and see the forest through the trees. Patient investors can capitalize on some compelling valuation opportunities today and still impressive long-term fundamentals by considering tech-heavy exchange traded funds, including the Goldman Sachs Innovate Equity [.

GINN Alluring as Tech Outlook Remains Impressive

Value stocks are holding up well to start 2022, while growth and technology fare are presenting investors with more questions than answers. However, some market observers say that there are good deals emerging among growth stocks and in the technology sector, adding that now is not the time to outright ignore these previously beloved corners [.

It Could Be Near Time to Revisit Tech Stocks

Sustainability is an increasingly prominent investment. So is investing with the intent of identifying innovative and disruptive companies with attractive growth traits.

This ETF Has Surprising Sustainability Credibility

Citing high inflation and a strong labor market, the Federal Reserve signaled on Wednesday that interest rate increases are coming “soon.” Predictably, that was enough to send stocks lower, though the Nasdaq Composite eked out a modest gain.

Tech Could Surprise Even as Rates Rise

A combination of markets pricing in slowing economic growth and rising interest rates is pinching growth and technology stocks this month, but for astute investors, the retrenchment could ultimately prove to be a buying opportunity. It's a matter of when, not if, technology stocks rebound, and for investors not wanting to stock pick amid the [.

GINN Opportunity Knocking After Tech Sell-Off

Apple (NASDAQ:AAPL) recently hit a market capitalization of $3 trillion, stoking some talk of when the iPhone maker will ascend to the $4 trillion club. There's also chatter about when Microsoft (NASDAQ:MSFT) will make its way to a $3 trillion market cap.

GINN Has Goods for More Big Tech Upside

BlackRock Future Tech ETF

SPDR FactSet Innovative Technology ETF

Innovation growth funds focus on innovative, high-growth companies with the potential for market-beating returns. These funds underperformed during 2021, but are better positioned for a strong 2022.

3 Strong Innovation Growth Funds For 2022

Cloud computing stocks endured a rough fourth quarter, and the group's start to 2022 is proving to be comparably unpleasant as an array of tech stocks are scuffling early in the new year. However, some of the largest, more mature companies in the space could still deliver for investors as 2022 unfolds.

Nibble at Cloud Stocks With This ETF

Technology wasn't the best-performing sector in the S&P 500 last year, but the group turned in another impressive showing, and there's no shortage of enthusiasm for tech stocks and the related exchange traded funds as 2022 unfolds. One of the ideas to consider is the Goldman Sachs Innovate Equity ETF (GINN).

GINN Could Be Grand in 2022

GINN is an innovation growth index ETF. The fund's holdings are quite diversified, with strong investments in safe mega-cap tech stocks, and riskier small-cap growth equities.

GINN: Safest Innovation Growth Fund, Strong Potential Returns

Profitability is likely to be a marquee theme in 2022 as investors eschew junkier equities in favor of quality fare. An extension of that theme is embracing high-margin firms.

Go With GINN as High-Margin Companies Remain Fashionable

With 2022 right around the corner, plenty of market observers and pundits are opining on what the new year will bring for equities. High up on the laundry list of concerns are inflation and bubble speculation.

GINN Has the Goods for an Eventful 2022

The recent emergence of the Omicron variant of the coronavirus is sparking fears that global economic growth could slow — something that many economists are forecasting is likely to happen in 2022 regardless of new COVID-19 strains. While it might sound counterintuitive to some investors, when economic growth slows, growth equities typically outperform other factors because [.

If Growth Slows, Lean Into This Growth ETF

There's still a lot to like with the technology sector, and the even better news is that those points of allure are rooted in sound fundamentals. That's good news for exchange traded funds like the Goldman Sachs Innovate Equity ETF (GINN).

Tech Still Tempting for All the Right Reasons

For all the chatter earlier this year about rising 10-year Treasuries weighing on growth stocks, the group is poised for another impressive annual showing. Not surprisingly, the same goes for the technology sector.

Some Popular Tech Stocks Aren't as Pricey as Investors Think

Whether it's slower earnings growth or a natural retreat from the massive economic growth fueled by stimulus cash and pent-up demand, many investors are pondering the impact of a slower growth environment. Slower growth often prompts investors to embrace growth stocks because those companies are delivering above-average earnings and sales growth.

Worried About Slowing Growth? This ETF Offers Protection

All that talk about growth stocks disappointing this year is proving inaccurate as the S&P 500 Growth Index is up about 23.1% year-to-date. The Goldman Sachs Innovate Equity ETF (GINN) is among the exchange traded funds benefiting from steadiness in growth stocks.

News for Goldman Sachs Innovate Equity ETF ETF (GINN)