GSAM Launches ETFs to Track Motif Indexes That Focus on the Next Wave of Innovation

Business Wire 7-Mar-2019 9:01 AM

The Goldman Sachs Motif ETFs provide exposure to companies that are driving the long-term global impact of technology across sectors

Goldman Sachs Asset Management (GSAM) today announced the launch of a suite of five exchange-traded funds (ETFs) that invest in the creators and adopters of innovation, across a range of sectors, market caps and geographies. The ETFs seek to track indices created by Motif, a leading provider of systematic, data-driven indices and strategies.

The ETFs provide exposure to the themes that GSAM views as driving transformational changes to the global economy: Data-Driven World, Finance Reimagined, Human Evolution, Manufacturing Revolution and New Age Consumer. These funds leverage the asset management expertise of Goldman Sachs and the proprietary technology of Motif to provide exposure to technology-driven structural growth opportunities across various developed and emerging equity markets.

"Technology is impacting every aspect of our daily lives," said Mike Crinieri, GSAM's Global Head of ETF Strategy. "It has grown from a single sector to a key driver of every sector. We are delighted to offer investors the ability to invest in companies driving these transformational changes."

The following Goldman Sachs Motif ETFs are available to investors on NYSE Arca today at 50 basis points:

• GDAT: Goldman Sachs Motif Data-Driven World ETF
• GFIN: Goldman Sachs Motif Finance Reimagined ETF
• GDNA: Goldman Sachs Motif Human Evolution ETF
• GMAN: Goldman Sachs Motif Manufacturing Revolution ETF
• GBUY: Goldman Sachs Motif New Age Consumer ETF

"We're bringing together human insight and data science by leveraging innovation to invest in innovation," said Hardeep Walia, CEO and Founder of Motif. "Our proprietary approach identifies the companies that are creating or adopting innovative technology and quantifies their relevance. We're excited to work with one of the world's leading asset managers to deliver these unique investment products."

To construct each index, Motif employs a rules-based methodology to analyze both traditional and alternative data in order to calculate a company's ‘thematic beta'¹ and quantify its exposure to a specific transformational change. Proprietary technology is used to select and weight securities in the index, based on their relevance and investability.

For more information on the Goldman Sachs Motif ETFs, including the prospectus documents, please visit www.GSAM.com/ETFs.

About Goldman Sachs Asset Management, L.P. (GSAM)

GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which supervises more than $1 trillion in assets as of December 31, 2018. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments, and high-net-worth individuals.

About Motif

Motif uses breakthrough technology and data science to build innovative investment products for individuals, institutions, and advisors. Today over 350,000 customers trust Motif with their investing. Current board members include former Securities Exchange Commission Chairman Arthur Levitt and former Boston Consulting Group Chairman & CEO Carl Stern. Motif is a FINRA registered broker-dealer and an SEC-registered institutional investment advisor, headquartered in San Mateo, California. To learn more about opportunities at Motif, please visit www.motif.com/careers.

Disclosures

1. Beta refers to the tendency of a security's returns to respond to swings in the market.

Goldman Sachs Motif ETFs

Goldman Sachs Motif ETFs The Goldman Sachs Motif Data-Driven World ETF, Goldman Sachs Motif Finance Reimagined ETF, Goldman Sachs Motif Human Evolution ETF, Goldman Sachs Motif Manufacturing Revolution ETF and Goldman Sachs Motif New Age Consumer ETF (each ,a "Fund" and collectively, the "Funds") seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Motif Data-Driven World Index, Motif Finance Reimagined Index, Motif Human Evolution Index, Motif Manufacturing Revolution Index and Motif New Age Consumer Index (each, an "Index" and collectively, the "Indexes"), respectively. The Motif Data-Driven World Index is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going rapid increase in electronically recorded data in the world and its impact on the lifecycle of data delivery and processing. The Motif Finance Reimagined Index is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going structural changes in the support and delivery of financial services. The Motif Human Evolution Index is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the development of new knowledge, medicines and technologies for the medical treatment of the human condition, from birth to end-of-life care. The Motif Manufacturing Revolution Index is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going technology-driven transformation of the manufacturing industry. The Motif New Age Consumer Index is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going structural shifts in the consumer market due to changes in demographics, technology and preferences. A 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. By engaging in thematic investing, a Fund relies on the index provider for the identification of certain themes and sub-themes, and Fund performance may suffer if such themes or sub-themes are not correctly identified, if a theme or sub-theme develops in an unexpected manner or if the stocks included in its respective Index do not benefit from the development of such themes or sub-themes. Because a Fund may concentrate its investments in an industry or group of industries (for example, the financial services industry group with respect to the Goldman Sachs Motif Finance Reimagined ETF) to the extent that its respective Index is concentrated, the Fund may be subject to greater risk of loss as a result of adverse economic, business or other developments affecting that industry or group of industries. Stock prices of technology and technology related companies in particular may be especially volatile. Foreign investments may be more volatile and less liquid than investments in U.S. securities and are subject to the risks of adverse economic or political developments. A Fund may invest heavily in investments in Europe and Asia and may be subject to greater losses than if it were less concentrated in Europe and Asia. Each Fund is not actively managed, and therefore a Fund will not generally dispose of a security unless the security is removed from its respective Index. An Index calculation methodology may rely on information based on assumptions and estimates and neither a Fund nor its investment adviser can guarantee the accuracy of the methodology's assessment of included issuers. A Fund's performance may vary substantially from the performance of its respective Index as a result of transaction costs, expenses and other factors.

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.

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. Diversification does not eliminate the risk of experiencing investment loss.

The Goldman Sachs Motif ETFs are newly organized and do not have an operating history.

Please note that one cannot invest directly into an index.

Motif Investing is a registered broker dealer. Motif Capital Management, Inc., is an SEC-registered investment adviser and a separate, wholly-owned subsidiary of Motif Investing, Inc. Investing models are developed through Motif Capital Management. "Motif" is a trademark of Motif Investing and has been licensed for use in connection with the issuance and distribution of the Funds. The Funds are not sponsored by, endorsed, sold or promoted by Motif Capital Management, Inc., and Motif Capital Management, Inc. makes no representation regarding the advisability of investing in them.

ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETF Funds. ALPS Distributors, Inc. is unaffiliated with Goldman Sachs Asset Management.

Please consider a Fund's objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. 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 (1-800-621-2550).Compliance code: 156854.OTU Date of first use: 3/6/2019.ALPS Control: GST 844 ED 3/6/2020.

NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.

© 2019 Goldman Sachs. All rights reserved.

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