Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF (GSSC)

Overview

The Goldman Sachs ActiveBetau00ae U.S. Small Cap Equity ETF (GSC) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs ActiveBetau00ae U.S. Small Cap Equity Index. It focuses on US small-cap equities, employing a rules-based active investment strategy based on factors like value, momentum, quality, and volatility.

Reputation and Reliability

Goldman Sachs Asset Management is a well-established and reputable global investment manager with a long track record.

Management Expertise

The management team consists of experienced professionals with expertise in quantitative investing and factor-based strategies.

Goal

To provide investment results that closely correspond to the performance of the Goldman Sachs ActiveBetau00ae U.S. Small Cap Equity Index.

Investment Approach and Strategy

Strategy: The ETF employs a rules-based active investment strategy that selects and weights securities based on a combination of value, momentum, quality, and low volatility factors.

Composition The ETF primarily holds a diversified portfolio of U.S. small-cap equities.

Market Share: GSC holds a moderate market share within the U.S. small-cap ETF category.

Total Net Assets (AUM): 374600000

Key Competitors

• iShares Russell 2000 ETF (IWM)
• Vanguard Small-Cap ETF (VB)
• Schwab U.S. Small-Cap ETF (SCHA)

Competitive Landscape

The U.S. small-cap ETF market is highly competitive with many established players. GSC differentiates itself through its ActiveBeta factor-based approach, which aims to outperform traditional market-cap weighted indexes. However, it faces the challenge of demonstrating consistent outperformance to attract investors away from lower-cost, passively managed options. Its advantage lies in a sophisticated factor-based approach, while a disadvantage is the higher expense ratio compared to passive ETFs.

Historical Performance: Historical performance data not available to generate the json at this time

Benchmark Comparison: Benchmark comparison data not available to generate the json at this time

Expense Ratio: 0.14

Average Trading Volume

The ETF's average trading volume is moderate, indicating reasonable liquidity for typical transactions.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting sufficient market depth.

Market Environment Factors

Economic growth, interest rate movements, and investor sentiment towards small-cap companies all impact the ETF's performance. Sector-specific trends within the small-cap universe also play a significant role.

Growth Trajectory

The ETF's growth is dependent on its ability to consistently deliver competitive returns relative to its benchmark and attract investor inflows. Changes to the index methodology or holdings can influence its future trajectory.

Competitive Edge

GSC's competitive edge lies in its proprietary ActiveBeta factor-based methodology, seeking enhanced returns through a systematic approach. This active management strategy targets factors like value, momentum, quality, and low volatility, potentially outperforming traditional market-cap weighted indexes. Goldman Sachs' established reputation and expertise in quantitative investing further bolsters investor confidence. However, factor performance can be cyclical, and periods of underperformance are possible.

Volatility

Small-cap equities are inherently more volatile than large-cap equities, and the ETF's value may fluctuate significantly.

Market Risk

The ETF is exposed to general market risk, as well as specific risks associated with small-cap companies, such as limited liquidity and greater sensitivity to economic downturns.

Ideal Investor Profile

The ideal investor is seeking exposure to U.S. small-cap equities with the potential for enhanced returns through an active management strategy. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

The ETF is suitable for long-term investors who are comfortable with the volatility associated with small-cap stocks and understand the active management approach.

The Goldman Sachs ActiveBetau00ae U.S. Small Cap Equity ETF (GSC) offers exposure to US small-cap stocks through a factor-based active management strategy. It aims to outperform traditional market-cap weighted indexes by selecting securities based on value, momentum, quality, and volatility. While it benefits from Goldman Sachs' expertise and a potentially enhanced return profile, the higher expense ratio and small-cap volatility should be considered. It is suitable for long-term investors comfortable with moderate to high risk seeking potentially higher returns than passive small-cap investments.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share is estimated and may vary. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.