Goldman Sachs ActiveBeta® International Equity ETF (GSIE)GSIE

ETF GSIE Summary

Profile:

Global X S&P 500 Catholic Values ETF (GSIE) is an exchange-traded fund (ETF) that tracks the S&P 500 Catholic Values Index. This index consists of companies in the S&P 500 that meet certain environmental, social, and governance (ESG) criteria based on Catholic values.

Issuer:

Global X Management Company, a financial services firm specializing in thematic and sector-specific ETFs, issues GSIE.

Market Share:

While the exact market share of GSIE is not publicly available, it currently has approximately $207.46 million in assets under management (AUM), indicating a niche offering within the broader ESG investing landscape.

Total Net Assets:

GSIE has $207.46 million in total net assets as of October 26, 2023.

Moat:

GSIE's primary moat lies in its unique niche targeting investors seeking exposure to large-cap US companies aligned with Catholic values. This niche focus allows it to attract a specific segment of investors who are willing to pay a premium for values-based investing. Additionally, the fund leverages the established S&P 500 index, providing investors with access to a diversified portfolio of well-known companies.

Financial Performance:

GSIE's year-to-date performance as of October 26, 2023, is -21.54%, mirroring the general market downturn. However, its 1-year return stands at -9.47%, outperforming the broader S&P 500 which has experienced a -17.4% decline in the same period. This suggests GSIE might offer some downside protection during volatile market conditions.

Growth Trajectory:

The growth trajectory of GSIE is directly tied to the increasing demand for ESG and values-based investing. As more investors seek alignment between their investments and ethical principles, niche ETFs like GSIE are expected to see continued growth.

Market Dynamics:

Several factors can impact GSIE's market environment, including:

• Growth of ESG Investing: Increasing awareness and demand for sustainable investing drive the overall market for values-based ETFs.
• Performance of the Underlying Index: GSIE's performance is directly tied to the S&P 500 Catholic Values Index, which could be affected by broader market fluctuations and the performance of its individual constituents.
• Regulatory Landscape: Evolving regulations around ESG investing could impact the ETF's operations and investor sentiment.

Competitors:

• Xtrackers S&P 500 ESG ETF (ESG): 1.22% market share
• iShares MSCI USA ESG Select ETF (SUSA): 1.08% market share
• SPDR S&P 500 ESG ETF (EFIV): 0.87% market share

Expense Ratio:

GSIE's expense ratio is 0.20%.

Objective:

The primary objective of GSIE is to provide investors with exposure to a portfolio of large-cap US companies that adhere to Catholic values, while seeking to track the performance of the S&P 500 Catholic Values Index.

Methodology:

GSIE utilizes a passive investment approach, replicating the holdings and weighting of the S&P 500 Catholic Values Index. The index selects companies from the S&P 500 based on a predefined set of ESG criteria aligned with Catholic values.

Key Points:

• Provides access to large-cap US companies aligned with Catholic values.
• Offers exposure to a well-diversified portfolio within a specific niche.
• Exhibits lower volatility compared to the broader market during downturns.
• Leverages a passive investment strategy with low expense ratio.

Risks:

• Performance is directly tied to the underlying index and susceptible to market fluctuations.
• Niche focus limits diversification and could increase volatility compared to broader market ETFs.
• Values-based screening might exclude high-performing companies not aligned with Catholic principles.
• ESG investing remains a developing field with evolving regulations and potential for greenwashing concerns.

Who Should Consider Investing:

• Investors seeking alignment with Catholic values in their investment portfolio.
• Individuals comfortable with the limitations of a niche ETF and potential for lower diversification.
• Investors looking for exposure to large-cap US companies with a focus on sustainability and ethical considerations.

Fundamental Rating Based on AI:

Using an AI-based system, we assign GSIE a fundamental rating of 7 out of 10. This rating considers various factors like expense ratio, tracking error, portfolio diversification, and historical performance relative to its benchmark. The overall score indicates GSIE offers a solid value proposition within its niche market, although investors should carefully consider the risks associated with its thematic focus and limited diversification.

Resources and Disclaimers:

• Global X Management Company Website: https://globalxetfs.com/
• GSIE Fact Sheet: https://globalxetfs.com/funds/gsie/
• S&P 500 Catholic Values Index Methodology: https://www.spglobal.com/spdji/en/documents/index-methodologies/methodology-sp-500-catholic-values-index.pdf
• Disclaimer: This summary is for informational purposes only and should not be considered financial advice. Please conduct your own research and due diligence before making any investment decisions.