Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (GEM)

Overview

The Goldman Sachs ActiveBetau00ae Emerging Markets Equity ETF (GEM) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs ActiveBetau00ae Emerging Markets Equity Index. The ETF focuses on emerging market equities and uses a rules-based indexing methodology that aims to enhance returns relative to traditional market-cap-weighted indexes.

Reputation and Reliability

Goldman Sachs Asset Management is a well-established and reputable global investment firm with a long history in financial markets.

Management Expertise

Goldman Sachs has significant experience and expertise in managing both passive and active equity strategies, with a dedicated team focused on emerging market investments.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs ActiveBetau00ae Emerging Markets Equity Index.

Investment Approach and Strategy

Strategy: The ETF does not track a specific market-cap weighted index, instead aiming to outperform them through a rules-based active strategy. It seeks to enhance returns relative to traditional market-cap-weighted indexes.

Composition The ETF primarily holds stocks of companies located in emerging market countries.

Market Share: GEM holds a moderate market share within the emerging markets equity ETF category.

Total Net Assets (AUM): 2484800000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets equity ETF industry is highly competitive, dominated by low-cost, market-cap-weighted ETFs. GEM differentiates itself through its ActiveBetau00ae strategy, which aims to provide enhanced returns. Advantages include potential outperformance during certain market conditions, while disadvantages may include higher expense ratio and potential underperformance.

Historical Performance: Historical performance data can be found on the Goldman Sachs Asset Management website and various financial data providers. The performance will vary based on market conditions.

Benchmark Comparison: The ETF's performance is compared to the Goldman Sachs ActiveBetau00ae Emerging Markets Equity Index. Investors can evaluate the tracking efficiency and active management's success relative to the benchmark.

Expense Ratio: 0.45

Average Trading Volume

The average trading volume is moderate, providing sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating relatively low trading costs.

Market Environment Factors

Emerging market equities are sensitive to global economic growth, interest rate changes, currency fluctuations, and geopolitical events. The fund is subject to the market risks of emerging markets.

Growth Trajectory

The growth trajectory depends on the performance of emerging markets and the effectiveness of the ActiveBetau00ae strategy. Changes to strategy are disclosed in the fund's prospectus.

Competitive Edge

GEM's competitive advantage lies in its ActiveBetau00ae strategy, which seeks to enhance returns through a rules-based, factor-driven approach. This strategy aims to capture the benefits of diversification while tilting towards factors such as value, momentum, quality, and low volatility. The fund's management by Goldman Sachs, a reputable investment firm, provides credibility and access to research resources. This differentiated approach may appeal to investors seeking enhanced returns beyond traditional market-cap-weighted indexes.

Volatility

Emerging market equities are generally more volatile than developed market equities. The volatility of GEM reflects the inherent risks of investing in emerging markets.

Market Risk

The ETF is subject to emerging market risk, currency risk, political risk, and economic risk associated with investing in developing economies.

Ideal Investor Profile

The ideal investor is one seeking exposure to emerging market equities with a preference for a rules-based active strategy that aims to enhance returns. They should have a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

This ETF is suitable for long-term investors seeking emerging market exposure and comfortable with the higher risks associated with emerging market investments. It is not intended for active traders seeking short-term gains.

The Goldman Sachs ActiveBetau00ae Emerging Markets Equity ETF offers exposure to emerging market equities with a rules-based active strategy. GEM's goal is to outperform traditional market-cap-weighted indexes with a factor-driven approach. While it faces strong competition from low-cost, passive ETFs, its ActiveBetau00ae strategy provides a differentiated offering. Investors should consider the higher risks associated with emerging markets and the ETF's expense ratio when making investment decisions. The ETF has a small market share compared to larger passive funds such as VWO and IEMG.

Data Sources:

• Goldman Sachs Asset Management Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investments in emerging markets involve significant risks.