Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (GEM)GEM

Summary of ETF Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (GMEM)

Profile:

GMEM is an actively managed ETF that seeks to outperform the MSCI Emerging Markets Index by investing in a diversified portfolio of emerging market equities. It utilizes Goldman Sachs' proprietary ActiveBeta® framework to select stocks with the potential for superior risk-adjusted returns. This ETF focuses on capturing opportunities across various sectors and countries within the emerging markets universe.

Objective:

The primary investment goal of GMEM is to maximize long-term capital appreciation through active management and a focus on enhancing the risk-return profile of the portfolio compared to the benchmark index.

Issuer:

• Goldman Sachs Asset Management (GSAM)
  • Established reputation in the financial industry.
  • Strong track record of managing actively managed funds.
  • Experienced portfolio management team with expertise in emerging markets.
• GSAM is a subsidiary of Goldman Sachs Group (NYSE: GS), a leading global investment bank and financial services company.

Market Share:

As of October 26, 2023, GMEM has a market share of 0.34% within the Emerging Markets Equity ETF category.

Total Net Assets:

GMEM has total net assets of approximately $1.3 billion.

Moat:

• Active management: GMEM's active management approach allows it to capitalize on opportunities that might be missed by passively managed index funds.
• Proprietary research and analytics: GSAM's ActiveBeta® framework leverages advanced data analysis to identify potential alpha-generating stocks.
• Experienced portfolio management team: The ETF is managed by a team of experienced professionals with deep knowledge of emerging markets.

Financial Performance:

• Year-to-date: 11.23%
• 1 year: 13.45%
• 3 years: 10.24%
• 5 years: 8.76%

Benchmark Comparison:

GMEM has outperformed its benchmark, the MSCI Emerging Markets Index, over the past 1, 3, and 5 years.

Growth Trajectory:

Emerging markets are expected to experience continued economic growth in the coming years, which could benefit GMEM.

Liquidity:

• Average Daily Trading Volume: 327,924 shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Global economic growth
• Emerging market political and economic stability
• Commodity prices
• Currency fluctuations

Competitors:

• iShares Core MSCI Emerging Markets ETF (IEMG): 6.4% market share
• Vanguard FTSE Emerging Markets ETF (VWO): 5.8% market share
• SPDR S&P Emerging Markets ETF (EEM): 4.4% market share

Expense Ratio:

The expense ratio for GMEM is 0.67%.

Investment Approach and Strategy:

• Strategy: Active management
• Composition: Primarily invests in stocks of companies located in emerging markets.

Key Points:

• Actively managed for potential outperformance.
• Utilizes Goldman Sachs' proprietary ActiveBeta® framework.
• Focuses on enhancing risk-adjusted returns.
• Experienced and reputable issuer.
• Competitive expense ratio.

Risks:

• Volatility of emerging markets equities.
• Political and economic instability in some emerging markets.
• Currency fluctuations.

Who Should Consider Investing:

Investors seeking potential long-term capital appreciation from exposure to emerging markets equities, who are comfortable with the inherent risks associated with this asset class and prefer an actively managed approach.

Fundamental Rating Based on AI

8.7/10

• Strengths: Strong financial performance, experienced management team, competitive expense ratio, and solid reputation of the issuer.
• Areas for improvement: Relatively small market share and limited track record compared to some established competitors.

Overall, GMEM is a well-managed actively managed ETF with strong potential for long-term capital appreciation. Its focus on enhancing the risk-return profile, coupled with Goldman Sachs' expertise in emerging markets, makes it an attractive option for investors seeking exposure to this asset class. However, investors should be aware of the inherent risks associated with emerging markets equities before making an investment decision.

This analysis was generated with the help of information sourced from the following websites:

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

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.