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Goldman leaders discuss AI-driven active ETF opportunity amid dispersion

Speakers cited S&P 500 stock level dispersion above 70%, the highest since 2009, as evidence of a more selective AI investing landscape.

Reported · Written up by our desk · ETFs

Goldman Sachs Asset Management leaders argued that the AI era is changing how investors should approach ETFs, pointing to greater dispersion in stock performance as markets broaden, ETF Trends reported.

In a VettaFi webinar, VettaFi Head of Research Todd Rosenbluth and VettaFi Research Analyst Ben Hernandez hosted comments from GSAM’s Katherine Bordlemay and Brook Dane, who discussed how active management may help investors navigate a shift marked by disruption across businesses.

Bordlemay said the “new paradigm” includes wider stock level dispersion, with S&P 500 dispersion north of 70%, described as the highest since 2009. She also said almost 60% of active managers have beaten their large cap growth benchmarks in the current era, compared with about 20% over the prior five years.

Dane outlined areas of focus across AI enabling technologies, from GPU semiconductors to ASIC chips and CPU chips, and highlighted additional themes including optical networking after memory bottlenecks and potential benefits for cybersecurity firms. He also referenced broader industry signals tied to recent events involving Hugging Face.

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