Goldman Sachs ActiveBeta® International Equity ETF (GSIE)

Overview

The Goldman Sachs ActiveBetau00ae International Equity ETF (GSIE) seeks to provide investment results that closely correspond, before fees and expenses, to the returns of the Goldman Sachs ActiveBetau00ae International Equity Index. It focuses on international equities, aiming for long-term capital appreciation using a rules-based approach that selects and weights securities based on factors like value, momentum, quality, and low volatility.

Reputation and Reliability

Goldman Sachs is a well-established and reputable financial institution with a long history in asset management.

Management Expertise

Goldman Sachs Asset Management has a dedicated team of investment professionals with extensive experience in managing equity portfolios and employing factor-based investment strategies.

Goal

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

Investment Approach and Strategy

Strategy: The ETF employs a rules-based strategy, selecting and weighting securities based on a multi-factor model (value, momentum, quality, and low volatility) that seeks to outperform the broader international equity market.

Composition The ETF holds a diversified portfolio of stocks from developed market countries outside of the United States. Its composition is primarily stocks, with allocations dynamically adjusted based on the factor exposures.

Market Share: The fund's market share within the international equity ETF space is moderate but growing.

Total Net Assets (AUM): 354757434

Key Competitors

• VEA
• IXUS
• ACWX

Competitive Landscape

The international equity ETF market is highly competitive with several large, established players. GSIE's advantage lies in its active, rules-based approach which aims to deliver alpha compared to passive index trackers. However, this active approach entails a higher expense ratio, a potential disadvantage compared to lower-cost passive funds. GSIE's relative size is smaller than its competitors.

Historical Performance: Historical performance can be found in the ETF's factsheet and prospectus. Performance will vary based on market conditions.

Benchmark Comparison: The ETF's performance is compared to the Goldman Sachs ActiveBetau00ae International Equity Index to assess its tracking efficiency.

Expense Ratio: 0.09

Average Trading Volume

GSIE's average trading volume is moderate, reflecting its size and investor interest, which impacts the ease of trading shares.

Bid-Ask Spread

The bid-ask spread for GSIE is typically competitive, though it can widen during periods of market volatility, which contributes to the cost of trading.

Market Environment Factors

Economic growth in developed international markets, interest rate policies of foreign central banks, and geopolitical events significantly impact GSIE's performance.

Growth Trajectory

GSIE's growth trajectory is influenced by investor demand for international equity exposure and the fund's ability to consistently deliver returns in line with or exceeding its benchmark.

Competitive Edge

GSIEu2019s competitive advantage lies in its ActiveBetau00ae strategy, utilizing a rules-based, multi-factor approach (value, momentum, quality, and low volatility) to select and weight securities. This aims to outperform traditional market-cap weighted indices. The fund benefits from Goldman Sachs' research capabilities and expertise in factor investing. The low expense ratio for an actively managed fund enhances its appeal. However, active management does not guarantee outperformance.

Volatility

GSIE's volatility is typical of international equity investments, influenced by global market fluctuations and currency exchange rates.

Market Risk

GSIE faces market risks associated with international equity investments, including economic downturns, political instability, and currency fluctuations in the countries represented in the portfolio.

Ideal Investor Profile

The ideal investor is seeking diversified international equity exposure with a focus on factor-based strategies and is comfortable with moderate risk.

Market Risk

GSIE is best suited for long-term investors who understand factor investing and seek potential outperformance compared to traditional market-cap weighted international equity indices. It may also appeal to active traders, but their trading frequency would need to accommodate the ETF's trading volumes.

The Goldman Sachs ActiveBetau00ae International Equity ETF (GSIE) offers a diversified portfolio of international equities, employing a rules-based ActiveBetau00ae strategy that aims to outperform the market by selecting and weighting securities based on value, momentum, quality, and low volatility factors. While it benefits from Goldman Sachs' expertise and a relatively low expense ratio for an actively managed fund, investors should be aware of the moderate trading volume and potential for volatility common in international markets. GSIE is suitable for long-term investors seeking international diversification and potential alpha generation. Its performance depends on economic conditions in developed international markets and the effectiveness of its multi-factor model.

Data Sources:

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

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.