Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GPRF)

ETF Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GHYB) Overview

Profile:

• Primary Focus: US preferred stocks and hybrid securities (70-80% allocation) with additional exposure to related securities like REITs and convertibles.
• Investment strategy: Actively managed, seeking high current income and capital appreciation through a diversified portfolio.
• Target Sector: Preferred Stock & Hybrid Securities

Objective:

• The primary investment goal is to generate high current income and capital appreciation through a diversified portfolio of US preferred stocks and hybrid securities.

Issuer:

• Goldman Sachs Asset Management: A leading global investment manager with a strong reputation and track record.
• Management: Experienced team with expertise in managing preferred stock and hybrid securities portfolios.

Market Share:

• 1.7% market share in the Preferred & Income Securities ETF category (as of November 2023).

Total Net Assets:

• $1.2 billion (as of November 2023).

Moat:

• Active management: Experienced team leveraging insights to select and weight securities for optimal performance.
• Diversification: Reduces risk by investing across various issuers and industries within the preferred stock & hybrid securities space.
• Access to Goldman Sachs research: Benefits from the firm's extensive research capabilities and insights.

Financial Performance:

• 3-year average return: 10.22%
• 5-year average return: 8.75%
• YTD return: (as of November 2023)
• Benchmark Comparison: Outperforms the S&P 500 Preferred Stock Index over the past 1, 3, and 5 years.

Growth Trajectory:

• Growth potential driven by increasing demand for income-generating assets and a favorable environment for preferred stocks.

Liquidity:

• Average daily trading volume: 123,000 shares (as of November 2023)
• Bid-ask spread: 0.05% (as of November 2023)

Market Dynamics:

• Interest rate environment: Rising rates can impact preferred stock valuations.
• Economic growth: Preferred stocks can be sensitive to economic cycles.
• Investor demand: Increased demand for income can drive growth in the preferred stock market.

Competitors:

• iShares Preferred and Income Securities ETF (PFF) - 12.5% market share
• SPDR Wells Fargo Preferred Stock ETF (PSK) - 6.4% market share
• VanEck Preferred Securities ex Financials ETF (PFXF) - 4.5% market share

Expense Ratio:

• 0.45%

Investment Approach and Strategy:

• Strategy: Actively managed, seeking high income and capital appreciation through a diversified portfolio of US preferred stocks and hybrid securities.
• Composition: Primarily invests in preferred stocks and hybrid securities, with additional exposure to REITs and convertibles.

Key Points:

• Potential for high current income and capital appreciation.
• Actively managed by experienced professionals.
• Diversified portfolio to mitigate risk.
• Access to Goldman Sachs research and insights.

Risks:

• Interest rate risk: Rising rates can impact preferred stock valuations.
• Market risk: Preferred stocks can be sensitive to economic cycles.
• Call risk: Issuers may call back preferred stocks, forcing investors to reinvest at potentially lower rates.
• Credit risk: Some preferred stocks have higher credit risk than others.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors with a long-term investment horizon.
• Investors who are comfortable with moderate risk.

Fundamental Rating Based on AI:

8.5/10

• Strong financial performance, competitive advantages, and experienced management team.
• Some exposure to interest rate and market risks.

Resources and Disclaimers:

• Data sources: Goldman Sachs website, ETFdb.com, 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.