Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (GEM)

Overview

The Goldman Sachs ActiveBetau00ae Emerging Markets Equity ETF (GEM) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs ActiveBetau00ae Emerging Markets Equity Index. The fund invests in a broadly diversified basket of emerging market stocks selected and weighted based on a rules-based methodology incorporating value, momentum, quality, and low volatility factors.

Reputation and Reliability

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

Management Expertise

Goldman Sachs Asset Management has a team of experienced professionals specializing in quantitative and active investment strategies.

Goal

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

Investment Approach and Strategy

Strategy: The ETF employs a rules-based approach, selecting and weighting stocks based on four factors: value, momentum, quality, and low volatility.

Composition The ETF primarily holds a diversified portfolio of stocks from emerging market countries.

Market Share: GEM has a moderate market share within the emerging markets equity ETF category.

Total Net Assets (AUM): 339600000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets equity ETF industry is highly competitive, with several large players dominating the market share. GEM differentiates itself through its ActiveBetau00ae strategy, which aims to outperform traditional market-cap-weighted indexes. However, GEM's relatively smaller AUM and higher expense ratio compared to larger competitors like VWO and IEMG can be a disadvantage.

Historical Performance: Historical performance data should be reviewed to assess the ETF's returns over various time periods.

Benchmark Comparison: The ETF's performance should be compared against the Goldman Sachs ActiveBetau00ae Emerging Markets Equity Index to evaluate tracking effectiveness.

Expense Ratio: 0.45

Average Trading Volume

The average trading volume is moderate, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting reasonable trading costs.

Market Environment Factors

Emerging market economic growth, political stability, currency fluctuations, and commodity prices significantly impact GEM's performance.

Growth Trajectory

The ETF's growth depends on the performance of emerging market equities and the effectiveness of its ActiveBetau00ae strategy; changes in factor exposure and portfolio holdings occur periodically based on the rules-based methodology.

Competitive Edge

GEM's competitive advantage lies in its ActiveBetau00ae strategy, which aims to deliver superior risk-adjusted returns compared to traditional passive emerging market ETFs. The rules-based approach provides a systematic and transparent way to select and weight stocks based on value, momentum, quality, and low volatility. Goldman Sachs' brand and expertise also contribute to its competitive positioning. However, factor-based investing may underperform during certain market environments.

Volatility

GEM's volatility is generally similar to that of other emerging market equity ETFs.

Market Risk

The ETF is subject to emerging market risks, including political instability, currency fluctuations, and economic uncertainty.

Ideal Investor Profile

The ideal investor is someone seeking exposure to emerging markets with a preference for a factor-based investment strategy.

Market Risk

This ETF is suitable for long-term investors seeking capital appreciation, but active traders may also find it appealing due to its factor-based approach.

The Goldman Sachs ActiveBetau00ae Emerging Markets Equity ETF (GEM) offers exposure to emerging market equities through a rules-based ActiveBetau00ae strategy that considers value, momentum, quality, and low volatility factors. GEM seeks to outperform traditional market-cap-weighted emerging market indexes, but its higher expense ratio and smaller AUM compared to competitors may be a disadvantage. The ETF is suitable for investors seeking long-term capital appreciation and factor-based exposure to emerging markets. Investors should carefully consider the risks associated with emerging markets and factor-based investing before investing.

Data Sources:

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

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data is approximate and may vary depending on the source and date.