Goldman Sachs ActiveBeta® Japan Equity ETF (GSJY)

Overview

The Goldman Sachs ActiveBetau00ae Japan Equity ETF (GSJP) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs ActiveBetau00ae Japan Equity Index. The fund invests in a broad range of Japanese equities and uses a rules-based approach to overweight securities with attractive value, momentum, quality, and low volatility characteristics.

Reputation and Reliability

Goldman Sachs is a well-established financial institution with a strong reputation and extensive experience in asset management.

Management Expertise

The management team has considerable expertise in quantitative investing and factor-based strategies.

Goal

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

Investment Approach and Strategy

Strategy: The ETF aims to outperform a market-cap-weighted Japan equity benchmark by overweighting stocks with attractive characteristics based on four factors: value, momentum, quality, and low volatility.

Composition The ETF holds a diversified portfolio of Japanese equity securities across various sectors.

Market Share: The ETF's market share within the Japan equity ETF segment varies and should be checked with current data providers.

Total Net Assets (AUM): 187160000

Key Competitors

• iShares MSCI Japan ETF (EWJ)
• WisdomTree Japan Hedged Equity Fund (DXJ)
• Xtrackers MSCI Japan Hedged Equity ETF (DBJP)

Competitive Landscape

The Japan equity ETF market is competitive, with several large players offering exposure to the Japanese stock market. GSJP differentiates itself through its ActiveBetau00ae strategy, which aims to outperform traditional market-cap-weighted indices. Advantages include the potential for higher returns; disadvantages include higher expense ratios and the risk that the factor-based strategy underperforms.

Historical Performance: Historical performance data should be gathered from official fund factsheets and financial data providers to assess returns over various time periods.

Benchmark Comparison: The ETF's performance should be compared against the Goldman Sachs ActiveBetau00ae Japan Equity Index and broad Japan equity benchmarks like the MSCI Japan Index.

Expense Ratio: 0.2

Average Trading Volume

The average trading volume of GSJP indicates adequate liquidity for most investors, but it's advisable to verify this with current data sources.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting decent trading liquidity, but should be monitored for potential fluctuations, especially during periods of market volatility.

Market Environment Factors

Economic indicators in Japan, global market sentiment, currency fluctuations (especially USD/JPY), and sector-specific growth prospects within the Japanese economy affect GSJP.

Growth Trajectory

Growth trends depend on the success of the ActiveBetau00ae strategy, investor demand for factor-based investing, and the overall performance of the Japanese equity market. Changes to the fund's strategy or holdings are detailed in official fund documentation.

Competitive Edge

GSJP's competitive advantage lies in its proprietary ActiveBetau00ae methodology, which seeks to enhance returns by strategically weighting stocks based on value, momentum, quality, and low volatility. This factor-based approach differentiates it from traditional market-cap-weighted Japan equity ETFs. Goldman Sachs' established brand and expertise in quantitative investing further bolster its appeal. However, the success of this strategy depends on the effectiveness of factor-based investing in the Japanese market.

Volatility

Historical volatility data is needed from financial sources to evaluate GSJP's price fluctuations relative to the broader market.

Market Risk

Market risk includes fluctuations in the Japanese stock market, currency risk (USD/JPY), and macroeconomic factors affecting the Japanese economy. Stock specific risk could also influence ETF performance.

Ideal Investor Profile

Investors seeking exposure to the Japanese equity market with a preference for factor-based strategies and the potential for outperformance relative to traditional market-cap-weighted indices.

Market Risk

Suitable for long-term investors with a moderate risk tolerance who understand factor-based investing and are looking for diversification in their international equity allocation.

Goldman Sachs ActiveBetau00ae Japan Equity ETF (GSJP) offers a factor-based approach to investing in Japanese equities, aiming to outperform traditional market-cap-weighted indices. Its ActiveBetau00ae strategy focuses on value, momentum, quality, and low volatility factors. While it benefits from Goldman Sachs' brand and expertise, investors should consider the higher expense ratio and the risk that the factor-based strategy may underperform. It is suitable for long-term investors with a moderate risk tolerance looking for diversified exposure to the Japanese market.

Data Sources:

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

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Market share data is approximate and may vary depending on the source. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.