Goldman Sachs ActiveBeta® Japan Equity ETF (GSJY)

ETF Goldman Sachs ActiveBeta® Japan Equity ETF (GJPX)

Profile:

• Primary Focus: Seeks to track the performance of the Solactive Japan Giants + Factor Tilt Index.
• Investment Strategy: ActiveBeta® factor-based indexing strategy focusing on Japan's largest companies with a tilt towards various factors like value, momentum, quality, and low volatility.
• Target Sector: Japanese equities

Objective:

• To achieve long-term capital appreciation by investing in a diversified portfolio of Japanese equities based on a factor-based indexing strategy.

Issuer:

• Company: Goldman Sachs Asset Management
• Reputation and Reliability: Leading global investment management firm with a strong reputation for financial performance and innovation.
• Management: Experienced investment team with expertise in factor investing and Japanese equities.

Market Share:

• Data on market share is not readily available.

Total Net Assets:

• $226.82 million (as of November 10, 2023)

Moat:

• ActiveBeta® methodology: A quantitative approach to factor investing that seeks to enhance returns through factor exposure.
• Access to proprietary data and analytics: Goldman Sachs leverages its extensive resources and research capabilities to identify undervalued companies.
• Experienced management team: The team has a proven track record of success in managing factor-based strategies.

Financial Performance:

• Since Inception (12/15/2021): 9.82% (as of November 10, 2023)
• 1 Year: 8.25%
• 3 Year: N/A (insufficient data)

Benchmark Comparison:

• The ETF has outperformed the MSCI Japan Index since inception.

Growth Trajectory:

• The ETF's assets under management have grown steadily since its launch.
• The increasing popularity of factor investing strategies suggests potential for further growth.

Liquidity:

• Average Trading Volume: 6,344 shares (as of November 10, 2023)
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Economic Growth: Japan's economic growth is expected to remain moderate in the coming years.
• Interest Rates: Rising interest rates can impact the attractiveness of equities.
• Investor Sentiment: Market sentiment can influence the performance of the ETF.

Competitors:

• iShares MSCI Japan ETF (EWJ)
• Vanguard FTSE Japan ETF (VGK)

Expense Ratio:

• 0.45%

Investment Approach and Strategy:

• The ETF employs an active factor-based indexing strategy.
• It invests primarily in large-cap Japanese stocks with a tilt towards value, momentum, quality, and low volatility factors.

Key Points:

• Actively managed factor-based approach.
• Focus on large-cap Japanese equities.
• Outperformance compared to the benchmark index.
• Experienced management team and strong issuer backing.

Risks:

• Market Risk: The ETF is subject to general market fluctuations and sector-specific risks.
• Factor Investing Risk: The success of the factor-based strategy depends on the continued validity of the factors.
• Management Risk: The performance of the ETF is dependent on the skill of the management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with exposure to the Japanese equity market.
• Investors who believe in the effectiveness of factor-based investing strategies.
• Investors comfortable with the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

8/10

Justification:

The AI-based rating considers the ETF's strong financial performance, experienced management team, and innovative investment strategy. It also acknowledges the potential risks associated with factor investing and market dependence. The rating suggests that GJPX fundamentals are promising, but investors should carefully consider their risk tolerance and investment goals before investing.

Resources and Disclaimers:

• Data was sourced from Goldman Sachs Asset Management website, Bloomberg Terminal, and ETF.com.
• This analysis should not be considered investment advice. Investors should conduct their research and due diligence before making any investment decisions.