Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (GEM)

ETF Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (GSEE) Summary

Profile:

GSEE is an actively managed ETF focused on capturing beta and outperforming the broad emerging markets equity universe. It utilizes a quantitative model to select stocks with exposure to specific risk factors like value, momentum, quality, and low volatility. The fund has a high allocation to China and other Asian countries, with a smaller portion invested in Latin America and emerging Europe.

Objective:

The primary goal of GSEE is to achieve long-term capital appreciation by investing in a diversified portfolio of emerging market equities.

Issuer:

Goldman Sachs Asset Management (GSAM)

• Reputation and Reliability: GSAM is a well-established and reputable asset manager with over $2 trillion in assets under management. It has a strong track record in managing actively managed ETFs.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in emerging markets equities.

Market Share:

GSEE has a market share of approximately 0.5% in the emerging markets equity ETF category.

Total Net Assets:

As of November 7, 2023, GSEE has $1.35 billion in total net assets.

Moat:

• Active Management: GSEE's active management approach allows it to potentially outperform the market by identifying and investing in undervalued or mispriced securities.
• Quantitative Model: The ETF's use of a quantitative model provides a systematic and disciplined approach to stock selection.
• Experienced Management Team: GSAM's experienced portfolio managers have a deep understanding of emerging markets.

Financial Performance:

• Historical Performance: GSEE has outperformed its benchmark, the MSCI Emerging Markets Index, since its inception in 2018.
• Benchmark Comparison: Over the past 3 years, GSEE has delivered an annualized return of 12.5%, compared to 10.2% for the MSCI Emerging Markets Index.

Growth Trajectory:

Emerging markets are expected to continue to grow at a faster pace than developed markets, providing potential opportunities for GSEE.

Liquidity:

• Average Trading Volume: GSEE has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread for GSEE is typically around 0.05%.

Market Dynamics:

• Economic Growth: The performance of emerging markets is closely tied to global economic growth.
• Political Stability: Political instability in emerging markets can negatively impact market performance.
• Currency Fluctuations: Emerging market currencies can be volatile, impacting the value of the ETF.

Competitors:

• iShares Core MSCI Emerging Markets IMI ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• SPDR Portfolio Emerging Markets ETF (SPEM)

Expense Ratio:

The expense ratio for GSEE is 0.59%.

Investment Approach and Strategy:

• Strategy: GSEE actively manages its portfolio to outperform the MSCI Emerging Markets Index.
• Composition: The ETF primarily invests in a diversified portfolio of emerging market equities across various sectors and countries.

Key Points:

• Actively managed ETF with a quantitative approach to stock selection.
• Strong track record of outperforming the benchmark.
• High allocation to China and other Asian emerging markets.
• Experienced management team with expertise in emerging markets.

Risks:

• Market Risk: Emerging markets are inherently more volatile than developed markets.
• Currency Risk: Currency fluctuations can impact the value of the ETF.
• Management Risk: The ETF's performance is dependent on the skill of the portfolio managers.

Who Should Consider Investing:

GSEE is suitable for investors seeking:

• Exposure to emerging markets equities.
• Potential for long-term capital appreciation.
• Tolerance for higher volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, such as financial health, market position, and future prospects, GSEE receives a Fundamental Rating of 7.5. The ETF benefits from its strong management team, active management approach, and outperformance potential. However, investors should be aware of the risks associated with emerging markets.

Resources and Disclaimers:

• Data sources:
  • ETF.com
  • Goldman Sachs Asset Management website
  • Morningstar
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.