The following are new investments that those saving for or living in retirement might consider for their portfolios. This week: Five new ETFs from Goldman Sachs investing in parts of the technology universe.
The recent introduction of five ETFs by Goldman Sachs points to the ever-expanding ETF universe and the narrow exposures that are being created by ETF product managers, says Lou Conrad, CFA of COMPASS Wealth Management, LLC, in Concord, Mass.
According to Conrad, Goldman Sachs' new ETFs invest in slivers of the technology universe, focused on transformational companies, based on indices from Motif Capital Management. The Goldman Sachs Motif suite of funds includes Data-Driven World ETF (GDAT), Finance Reimagined ETF (GFIN), Human Evolution ETF (GDNA), Manufacturing Revolution ETF (GMAN), and New Age Consumer ETF (GBUY). These ETFs invest in up to 120 companies each, across market capitalizations, sectors, and geographies, with annual expense ratios of 0.50%:
- GDAT pursues companies that will benefit from the digitization of data;
- GFIN focuses on evolving technology for the delivery of financial services;
- GDNA targets the development of medical advances;
- GMAN invests in new methods used in the manufacturing process; and
- GBUY selects firms that should benefit from structural shifts among consumer markets.
While some retirement investors may be intrigued by these new offerings, given their small slice of the overall investing universe and industry-focused nature, Conrad recommends judicious use of funds such as these and limiting allocations within an overall diversified portfolio.
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