Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GPRF)

Overview

The Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GPX) seeks to provide investment results that closely correspond to the performance of the ICE BofA U.S. Diversified Core Plus Fixed Rate Preferred Securities Index, a market-value-weighted index that tracks the performance of fixed-rate U.S. dollar-denominated preferred securities and hybrid securities publicly issued in the U.S. domestic market. The fund focuses on the preferred stock and hybrid securities sector, offering investors exposure to a segment of the fixed-income market that typically offers higher yields than traditional bonds but also comes with specific risks. The investment strategy involves a passive approach, aiming to replicate the index's holdings.

Reputation and Reliability

Goldman Sachs is a well-established and reputable financial institution with a long history in asset management. They are considered a reliable issuer of ETFs.

Management Expertise

Goldman Sachs has a dedicated and experienced team of portfolio managers and analysts overseeing their ETF offerings. They bring substantial expertise in fixed income and ETF management.

Goal

To provide investment results that closely correspond to the performance of the ICE BofA U.S. Diversified Core Plus Fixed Rate Preferred Securities Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management investment strategy designed to track the ICE BofA U.S. Diversified Core Plus Fixed Rate Preferred Securities Index.

Composition The ETF holds a portfolio of fixed-rate U.S. dollar-denominated preferred securities and hybrid securities publicly issued in the U.S. domestic market.

Market Share: GPX's market share varies within the preferred stock ETF category, influenced by AUM and trading volume compared to competitors.

Total Net Assets (AUM): 308400000

Key Competitors

• PFF (iShares Preferred and Income Securities ETF)
• SPFF (Global X SuperIncome Preferred ETF)
• PFFA (InfraCap REIT Preferred ETF)

Competitive Landscape

The preferred stock ETF market is relatively concentrated, with a few large players dominating the market share. GPX faces stiff competition from larger, more established ETFs like PFF. GPX's advantage lies in Goldman Sachs' brand recognition and potentially a different index weighting, but it needs to gain more AUM to improve liquidity and visibility. The disadvantage is lower AUM and trading volume compared to larger competitors.

Historical Performance: Historical performance data should be obtained from reliable financial data providers to review performance over various timeframes.

Benchmark Comparison: The ETF's performance should be compared against the ICE BofA U.S. Diversified Core Plus Fixed Rate Preferred Securities Index to evaluate tracking efficiency.

Expense Ratio: 0.33

Average Trading Volume

GPX's average trading volume varies, but generally it's liquid enough for most retail investors, though institutional investors might find it less so.

Bid-Ask Spread

The bid-ask spread of GPX is generally competitive, but can widen during periods of market volatility.

Market Environment Factors

Interest rate movements, credit spreads, and overall economic conditions significantly impact the performance of preferred stocks and hybrid securities. Changes in regulations affecting financial institutions can also have a notable effect.

Growth Trajectory

The growth trajectory of GPX depends on investor appetite for preferred securities, interest rate environment, and Goldman Sachs' marketing efforts. Changes to strategy and holdings are made to maintain alignment with the benchmark index.

Competitive Edge

GPX's competitive edge comes from being offered by Goldman Sachs, a well-known and respected financial institution, giving it instant credibility. The ETF's passive strategy targeting the ICE BofA U.S. Diversified Core Plus Fixed Rate Preferred Securities Index may appeal to investors looking for broad exposure. The fund's expense ratio is competitive. However, it must compete with already established Preferred Stock ETFs with higher AUM.

Volatility

Preferred stocks generally exhibit moderate volatility, influenced by interest rate sensitivity and credit risk of the issuers.

Market Risk

GPX is subject to market risk, interest rate risk (as preferred stocks are sensitive to rate changes), credit risk (as preferred stocks are issued by corporations), and liquidity risk (especially during market stress).

Ideal Investor Profile

GPX is suitable for investors seeking income and diversification within their fixed-income portfolio. It is most appropriate for those with a moderate risk tolerance and an understanding of preferred stocks and hybrid securities.

Market Risk

GPX is best suited for long-term investors seeking income, as well as for those looking to diversify their portfolio with exposure to preferred stocks and hybrid securities.

The Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GPX) offers exposure to a diversified portfolio of U.S. dollar-denominated preferred stocks and hybrid securities. It aims to replicate the ICE BofA U.S. Diversified Core Plus Fixed Rate Preferred Securities Index and is managed by Goldman Sachs. While it benefits from the issuer's reputation, it faces competition from larger, more established ETFs in the preferred stock space. GPX is most appropriate for investors with a moderate risk tolerance seeking income and diversification within their fixed-income portfolio.

Data Sources:

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

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on your individual circumstances and consultation with a qualified financial advisor.