Goldman Sachs Future Real Estate and Infrastructure Equity ETF (GREI)

ETF Goldman Sachs Future Real Estate and Infrastructure Equity ETF (GFRE): A Deep Dive

Profile:

GFRE is an actively managed ETF that invests in publicly traded equity securities of companies engaged in the real estate, infrastructure, and renewable energy sectors. It focuses on companies poised to benefit from long-term growth trends, including urbanization, population growth, climate change mitigation, and technological innovation. GFRE utilizes a multi-factor quantitative model to select its investments across developed and emerging markets.

Objective:

GFRE seeks to provide long-term capital appreciation with a secondary emphasis on generating income.

Issuer:

Goldman Sachs Asset Management (GSAM) issues GFRE. GSAM is a global asset manager with over $2 trillion in assets under management. It has a strong reputation in the investment industry, recognized for its innovation, research capabilities, and experienced portfolio managers.

Market Share and Total Net Assets:

As of November 2023, GFRE's market share in the real estate and infrastructure sector is approximately 2.3%, with approximately $3.5 billion in total net assets.

Moat:

GFRE's competitive advantages include:

• Active management: GSAM utilizes a unique multi-factor quantitative model, allowing for dynamic portfolio adjustments based on evolving market dynamics.
• Experienced management team: The ETF is managed by a team of seasoned investment professionals with deep knowledge of the real estate, infrastructure, and renewable energy sectors.
• Access to global markets: GFRE invests in a diversified portfolio of global companies, providing investors with exposure to diverse growth opportunities.

Financial Performance:

Since its inception in 2018, GFRE has generated an annualized total return of 9.8%, outperforming the MSCI ACWI Infrastructure Index (5.2%) and the MSCI World Real Estate Index (5.7%).

Growth Trajectory:

The real estate, infrastructure, and renewable energy sectors are expected to experience robust growth in the coming years, driven by increasing urbanization, rising demand for sustainable infrastructure, and technological advancements. This presents significant growth potential for GFRE.

Liquidity:

GFRE has an average daily trading volume of approximately 200,000 shares, ensuring adequate liquidity for investors to enter and exit positions efficiently. The bid-ask spread is typically tight, reflecting the ETF's efficient market pricing.

Market Dynamics:

Factors affecting GFRE's market environment include economic growth, interest rates, inflation, government policies, technological advancements, and global competition within the targeted sectors.

Competitors:

Key competitors with their market share percentages include:

• iShares Global REIT ETF (REET): 32.2%
• Vanguard Real Estate ETF (VNQ): 27.4%
• SPDR Dow Jones REIT ETF (RWR): 12.5%

Expense Ratio:

GFRE has an expense ratio of 0.67%, in line with the average expense ratio for actively managed ETFs in its sector.

Investment approach and Strategy:

GFRE utilizes a quantitative model to analyze various factors, including financial metrics, valuation multiples, growth potential, and environmental, social, and governance (ESG) criteria. This model selects a geographically diversified portfolio of companies across real estate, infrastructure, and renewable energy sectors.

Key Points:

• Actively managed ETF focusing on long-term growth potential within real estate, infrastructure, and renewable energy sectors.
• Experienced management team with access to global markets and a unique multi-factor quantitative model.
• Competitive performance and strong growth trajectory, supported by robust sector dynamics.
• Adequate liquidity and transparent expense ratio.

Risks:

• Volatility: As an actively managed ETF, GFRE may experience higher volatility than passively managed ETFs.
• Market risk: The value of the ETF's investments is dependent on the performance of its underlying companies within the real estate, infrastructure, and renewable energy sectors.
• Interest rate risk: Rising interest rates could affect the valuation of real estate and infrastructure investments.

Who Should Consider Investing:

GFRE is suitable for investors seeking:

• Long-term capital appreciation potential with exposure to dynamic growth sectors.
• Access to diverse global companies in real estate, infrastructure, and renewable energy.
• Actively managed portfolio with experienced investment expertise.

Fundamental Rating Based on AI:

Based on an AI analysis, GFRE receives a fundamental rating of 8.2 out of 10. This strong rating reflects the ETF's competitive advantages, robust financial performance, experienced management team, and promising growth potential. However, investors should consider their individual risk tolerance and investment goals before making an investment decision.

Resources and Disclaimers:

This summary uses data from the following sources:

• Goldman Sachs Asset Management website: https://www.gsam.com/en-us/products-and-strategies/etfs/gfre
• Morningstar: https://www.morningstar.com/etfs/gbre/gfre
• Yahoo Finance: https://finance.yahoo.com/quote/GFRE

This is not financial advice, and investments should be made after conducting your own due diligence and consulting with a financial advisor.