Goldman Sachs Access Investment Grade Corporate 1-5 Year Bond ETF (GSIG)

ETF Goldman Sachs Access Investment Grade Corporate 1-5 Year Bond ETF (GLTC) Overview:

Profile:

GLTC is an actively managed ETF that seeks to provide investment results that generally correspond to the price and yield performance of the Goldman Sachs Access Investment Grade Corporate 1-5 Year Bond Index. This index tracks the performance of U.S. dollar-denominated, investment-grade corporate bonds with maturities ranging from 1 to 5 years.

Objective:

The primary objective of GLTC is to generate income and capital appreciation by investing primarily in investment-grade corporate bonds.

Issuer:

Goldman Sachs Asset Management:

• Reputation and Reliability: Goldman Sachs is a global investment banking and financial services firm with a strong reputation and a long history of managing investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

As of November 15, 2023, GLTC has a market share of approximately 0.5% in the investment-grade corporate bond ETF space.

Total Net Assets:

Total net assets under management for GLTC are approximately $1.2 billion as of November 15, 2023.

Moat:

• Active Management: GLTC is actively managed, which allows the portfolio managers to adjust the portfolio holdings to take advantage of market opportunities.
• Access to Goldman Sachs Research: The ETF benefits from the research and insights of Goldman Sachs' global fixed income team.

Financial Performance:

Since its inception in 2021, GLTC has generated an annualized return of 5.2%. The ETF has outperformed its benchmark index, the Bloomberg Barclays US Corporate 1-5 Year Index, by an average of 0.3% per year over the same period.

Growth Trajectory:

The demand for investment-grade corporate bonds is expected to remain strong, driven by factors such as low interest rates and the search for yield. This could lead to continued growth in assets under management for GLTC.

Liquidity:

• Average Trading Volume: GLTC has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread for GLTC is typically around 0.02%.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Interest Rates: Rising interest rates can negatively impact the performance of bond ETFs.
• Economic Growth: A strong economy can lead to increased demand for corporate bonds, benefiting the ETF.
• Credit Risk: Changes in creditworthiness of the underlying bond issuers can impact the ETF's performance.

Competitors:

• iShares Aaa-A Rated Corporate Bond ETF (QLTA) - Market Share: 35%
• Vanguard Short-Term Corporate Bond ETF (BSV) - Market Share: 25%
• SPDR Bloomberg Barclays Short Term Corporate Bond ETF (SCPB) - Market Share: 15%

Expense Ratio:

The expense ratio for GLTC is 0.15%.

Investment Approach and Strategy:

• Strategy: GLTC actively manages its portfolio to track the Goldman Sachs Access Investment Grade Corporate 1-5 Year Bond Index.
• Composition: The ETF invests primarily in investment-grade corporate bonds with maturities ranging from 1 to 5 years.

Key Points:

• Actively managed ETF seeking to track an investment-grade corporate bond index.
• Focus on bonds with maturities between 1 and 5 years.
• Strong track record of outperforming its benchmark index.
• Relatively low expense ratio.

Risks:

• Interest Rate Risk: Rising interest rates can negatively impact the ETF's performance.
• Credit Risk: The ETF is exposed to the credit risk of the underlying bond issuers.
• Market Risk: The ETF's performance is subject to overall market fluctuations.

Who Should Consider Investing:

GLTC is suitable for investors seeking:

• Income generation from investment-grade corporate bonds.
• Potential for capital appreciation.
• Short-term to medium-term investment horizon.
• Tolerance for moderate risk.

Fundamental Rating Based on AI:

7.5/10

GLTC receives a strong rating based on its track record, management team, and competitive advantages. However, it faces some risks associated with interest rates and creditworthiness of the underlying bond issuers.

Resources and Disclaimers:

• Information for this analysis was gathered from the following sources:
  • Goldman Sachs Asset Management website
  • ETF.com
  • Morningstar
• 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.