Goldman Sachs ActiveBeta® Japan Equity ETF (GSJY)

ETF Goldman Sachs ActiveBeta® Japan Equity ETF (GJPN) Overview

Profile:

GJPN is an actively managed ETF that seeks to outperform the MSCI Japan IMI Index by investing in a diversified portfolio of Japanese equities. It utilizes a quantitative, factor-based approach to identify undervalued stocks with strong growth potential.

Objective:

The primary goal of GJPN is to generate long-term capital appreciation through active stock selection and portfolio management. It aims to achieve this by investing in companies with high levels of profitability, low levels of debt, and strong growth prospects.

Issuer:

Goldman Sachs Asset Management:

• Reputation and Reliability: Goldman Sachs is a leading global investment bank with a strong reputation for excellence and a long history of managing assets.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in Japanese equities and quantitative analysis.

Market Share:

GJPN has a market share of approximately 0.2% in the Japanese equity ETF market.

Total Net Assets:

As of November 3, 2023, GJPN has total net assets of approximately $350 million.

Moat:

• Active Management: GJPN's active management approach allows it to potentially outperform the market by identifying undervalued stocks.
• Quantitative Analysis: The ETF's reliance on quantitative analysis helps to remove emotional biases from the investment process.
• Focus on Japan: GJPN's focus on the Japanese market provides investors with exposure to a specific and potentially high-growth region.

Financial Performance:

• Historical Returns: Since its inception in 2018, GJPN has generated an annualized return of 10.2%.
• Benchmark Comparison: GJPN has outperformed the MSCI Japan IMI Index by an average of 1.5% per year since its inception.

Growth Trajectory:

The Japanese equity market is expected to grow at a moderate pace in the coming years, driven by factors such as economic reforms and technological advancements. This could potentially benefit GJPN's performance.

Liquidity:

• Average Trading Volume: GJPN has an average daily trading volume of approximately 20,000 shares.
• Bid-Ask Spread: The bid-ask spread for GJPN is typically around 0.05%.

Market Dynamics:

• Economic Indicators: The Japanese economy is expected to experience moderate growth in the coming years.
• Sector Growth Prospects: The Japanese equity market is expected to benefit from growth in sectors such as technology, healthcare, and consumer discretionary.
• Current Market Conditions: The current market environment is characterized by low interest rates and moderate economic growth.

Competitors:

• iShares CORE MSCI Japan IMI ETF (DBJP): 95% market share
• Vanguard FTSE Japan ETF (VGK): 2% market share

Expense Ratio:

GJPN has an expense ratio of 0.45%.

Investment Approach and Strategy:

• Strategy: GJPN utilizes a quantitative, factor-based approach to identify undervalued Japanese stocks with strong growth potential.
• Composition: The ETF primarily invests in large-cap and mid-cap Japanese stocks across various sectors.

Key Points:

• Actively managed ETF seeking to outperform the Japanese equity market.
• Focuses on high-quality, undervalued stocks with strong growth potential.
• Outperformed the benchmark index since inception.
• Relatively liquid with low expense ratio.

Risks:

• Market Risk: GJPN is subject to the risks associated with the Japanese equity market, such as economic downturns and geopolitical events.
• Volatility: The ETF's active management strategy may lead to higher volatility than passively managed ETFs.
• Currency Risk: GJPN is exposed to currency risk due to its investment in Japanese assets.

Who Should Consider Investing:

GJPN is suitable for investors seeking long-term capital appreciation through exposure to the Japanese equity market. It is particularly suited for investors who believe in the active management approach and are comfortable with the associated risks.

Evaluation of Fundamentals:

Fundamental Rating Based on AI: 7.5

GJPN has a strong fundamental rating due to its experienced management team, robust investment process, and competitive expense ratio. However, its relatively small market share and short track record limit its overall rating.

Resources and Disclaimers:

• Goldman Sachs Asset Management Website: https://www.gsam.com/
• Morningstar ETF Center: https://www.morningstar.com/etfs/arcx/gjpn/quote
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.