Sister Mu's ARK has a strong competitor.

On Thursday morning, Goldman Sachs Group, a famous investment bank, launched an actively managed ETF fund.$GOLDMAN SACHS FUTURE TECH LEADERS EQUITY ETF (GTEK.US) $(Goldman Sachs Group Future Technology Leader Stock ETF)The ETF will specialize in leading technology companies with a market capitalization of less than $100 billion in emerging and developed countries that represent the future.

Large technology companies such as FAANG have long dominated the stock market, and their share prices have hit record highs, both during the epidemic blockade and during fears of overvaluation caused by inflation.

However, Goldman Sachs Group believes thatMany investors have overinvested in American giant technology companies.

The investment bank saidAt present, investors should protect the diversification of their investments and look away from the five large technology companies-Apple Inc, Alphabet Inc-CL C's parent company, Amazon.Com Inc, Facebook and Microsoft Corp-and look for other companies with great potential.

Katie Koch, co-head of the equity business of Goldman Sachs Group's asset management department, saidGTEK was established to keep the company at the forefront of technological disruption and continuous innovation.

We are trying to find technology companies like FAANG, and there will be companies whose share prices are expected to soar 1750 times in the future.

What areas will Goldman Sachs Group's technology ETF invest in?

It is reported that GTEK will look for potential future technology leaders through proactive, bottom-up stock selection and strict valuation methods.

Goldman Sachs Group saidThe ETF will invest in 60 to 80 global listed technology companies with a market capitalization of less than $100 billion.The investment sector will focus on emerging chipmakers, software, financial technology and cyber security.

GTEK's current holdings include Chinese software company Kingdee, chipmaker Entegris, Australia's Atlassian Software and Palo Alto Networks.

Sung Cho, portfolio manager at GTEK, said:

Over the past few decades, most of the innovations we have seen in technology have been concentrated in the United States and centered on a small number of companies, but we believe we are at a critical inflection pointScientific and technological innovation will expand to other regions, and the concentration of market capitalization will be reduced.

At least 1/4 of GTEK's holdings will be in emerging markets, Southeast Asia and Latin America where "technological innovation is just beginning".

What is the difference between the strategies of challenging ARK, Goldman Sachs Group and Sister Mu?

At present, the most popular technology active investment ETF is the ARK of "wooden Sister" Cathie Wood, especially its flagship ETF--.$ARK Innovation ETF (ARKK.US) $.

ARK focuses on companies that apply revolutionary technologies such as artificial intelligence, robotics, electric vehicle finance, 3D printing, blockchain, and so on.

To this strong competitor, Katie Koch, co-head of the basic stock business of Goldman Sachs Group Asset Management, said:

We know Cathie Wood. She is a strong competitor, and GTEK takes a different approach from other tech themes such as ETF, such as ArkIt will target smaller innovative technology companies, nearly half of which are outside the US, rather than large-cap stocks such as Apple Inc and Amazon.Com Inc.

At present, nearly half of the Ark fund positions are made up of 10 large companies, including Tesla, Teladoc health, Unity Software, Roku and Coinbase.

Looking back at the historical performance, ARKK was one of the best-growing ETF in the US market last year, rising 149% for the whole of 2020, and the size of management increased tenfold, an unprecedented growth rate among active ETF funds.

But ARKK's fund returns fell after late February, as technology growth stocks rose sluggishly. By the trough of mid-May, it was down more than 30 per cent from its peak in early February, and although it has rebounded since then, ARKK, the flagship fund, has returned negative year-to-date, down about 5 per cent.

It is worth mentioning that, like ARK, Goldman Sachs Group said the fund would update its position and trading regularly to investors.

Compared with Sister Mu's ARK, Goldman Sachs Group's ETFWill focus more on technological innovation companies with small and medium market capitalization in emerging markets

The investment strategies of the two companies can be described asharmony but not sameness

Who do you prefer?