Goldman Sachs ActiveBeta® Japan Equity ETF (GSJY)

Overview

The Goldman Sachs ActiveBetau00ae Japan Equity ETF (GSJP) seeks to provide investment results that closely correspond to the performance of the ActiveBetau00ae Japan Equity Index. The fund focuses on large and mid-cap Japanese equities, utilizing a rules-based methodology that aims to enhance returns by overweighting stocks with attractive value, momentum, quality, and low volatility characteristics.

Reputation and Reliability

Goldman Sachs Asset Management is a well-established and reputable asset manager with a long track record in the financial industry.

Management Expertise

The management team possesses considerable experience in quantitative investing and portfolio management, leveraging Goldman Sachs' research and resources.

Goal

The primary investment goal is to provide investment results that closely correspond to the performance, before fees and expenses, of the ActiveBetau00ae Japan Equity Index.

Investment Approach and Strategy

Strategy: The ETF employs a rules-based, active investment strategy designed to outperform traditional market-cap weighted indexes.

Composition The ETF primarily holds stocks of large and mid-capitalization Japanese companies.

Market Share: GSJP holds a relatively small market share compared to other Japan equity ETFs.

Total Net Assets (AUM): 161900000

Key Competitors

• iShares MSCI Japan ETF (EWJ)
• WisdomTree Japan Hedged Equity Fund (DXJ)
• JPMorgan BetaBuilders Japan ETF (BBJP)

Competitive Landscape

The Japan equity ETF market is competitive with several large players. GSJP's active beta strategy aims to differentiate itself, but it faces stiff competition from lower-cost, passive ETFs. GSJP offers potential for outperformance, but that comes at a higher expense ratio than passive alternatives. The primary disadvantages of GSJP is its higher expense ratio with limited trading volume compared to its competitors.

Historical Performance: Performance data would need to be sourced from financial data providers for specific time periods.

Benchmark Comparison: Performance compared to the ActiveBeta Japan Equity Index needs to be tracked.

Expense Ratio: 0.2

Average Trading Volume

The average daily trading volume is moderate, meaning that large trades may affect pricing.

Bid-Ask Spread

The bid-ask spread is typically small, but can widen during periods of market volatility, impacting trading costs.

Market Environment Factors

Economic indicators in Japan, global market sentiment, and currency fluctuations (USD/JPY) affect the ETF's performance.

Growth Trajectory

The growth trajectory is dependent on the performance of the Japanese equity market and the effectiveness of the ActiveBeta strategy. Any changes to strategy and holdings will impact the growth.

Competitive Edge

GSJP's competitive advantage lies in its rules-based ActiveBeta strategy, which aims to systematically enhance returns by overweighting stocks with attractive characteristics. This approach differentiates it from passive market-cap weighted ETFs. Goldman Sachs' research capabilities and expertise in quantitative investing further support this strategy. The ETF may appeal to investors seeking enhanced returns within the Japanese equity market, but this requires careful consideration of the higher expense ratio and potential tracking error.

Volatility

Historical volatility data needs to be sourced, based on the ETF's market data and overall risk is relatively high.

Market Risk

Specific risks include exposure to the Japanese equity market, currency risk (USD/JPY exchange rate fluctuations), and potential underperformance of the ActiveBeta strategy compared to passive benchmarks.

Ideal Investor Profile

The ideal investor is one who seeks exposure to the Japanese equity market with potential for outperformance through an active strategy. Investors should have a moderate to high risk tolerance and be comfortable with a higher expense ratio compared to passive ETFs.

Market Risk

This ETF is suitable for long-term investors and potentially active traders, it might not be the most suitable for passive index followers due to its higher expense ratio.

The Goldman Sachs ActiveBetau00ae Japan Equity ETF (GSJP) offers exposure to the Japanese equity market through a rules-based active strategy. It aims to outperform traditional market-cap weighted indexes by overweighting stocks with attractive characteristics. The ETF is managed by Goldman Sachs Asset Management and carries a higher expense ratio compared to passive alternatives. Investors should consider their risk tolerance, investment horizon, and the potential for outperformance before investing in GSJP. GSJP should be part of well-diversified portfolio allocated to international equities.

Data Sources:

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

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.