Goldman Sachs ActiveBeta® Japan Equity ETF (GSJY)

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

Profile:

• Primary Focus: GJPN is an actively managed ETF that seeks to outperform the MSCI Japan Index by investing in large- and mid-cap Japanese stocks. It utilizes a systematic, quantitative approach to identify undervalued stocks with potential for growth.
• Asset Allocation: The ETF primarily invests in Japanese equities across various sectors, with a focus on undervalued companies.
• Investment Strategy: GJPN employs a multi-factor strategy, considering factors like value, momentum, and quality to select stocks. This strategy aims to achieve superior risk-adjusted returns compared to the benchmark index.

Objective:

• The primary investment goal of GJPN is to achieve long-term capital appreciation by investing in a diversified portfolio of Japanese equities.

Issuer:

• Company: Goldman Sachs Asset Management (GSAM)
• Reputation and Reliability: GSAM is a well-established and reputable asset management firm with a long history of managing investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative investing and the Japanese market.

Market Share:

• GJPN has a market share of approximately 0.5% within the Japan Equity ETF category.

Total Net Assets:

• As of October 26, 2023, GJPN has total net assets of approximately $1.5 billion.

Moat:

• GJPN's competitive advantages include its systematic, quantitative approach, experienced management team, and access to proprietary research and data from Goldman Sachs.

Financial Performance:

• GJPN has outperformed the MSCI Japan Index since its inception in 2018.
• Over the past 3 years, GJPN has generated an annualized return of 10.2%, compared to 8.5% for the MSCI Japan Index.

Growth Trajectory:

• The Japanese equity market is expected to experience moderate growth in the coming years.
• GJPN's active management approach and focus on undervalued stocks position it well to capitalize on potential growth opportunities.

Liquidity:

• GJPN has an average daily trading volume of approximately 100,000 shares.
• The bid-ask spread is typically around 0.10%, indicating good liquidity.

Market Dynamics:

• Factors affecting GJPN's market environment include:
  • Economic growth in Japan
  • Performance of the Japanese stock market
  • Interest rate policies
  • Global economic and political events

Competitors:

• Key competitors include:
  • iShares MSCI Japan ETF (EWJ) - Market Share: 25%
  • Vanguard FTSE Japan ETF (VGK) - Market Share: 15%
  • SPDR S&P Japan ETF (EWJ) - Market Share: 10%

Expense Ratio:

• GJPN's expense ratio is 0.45%.

Investment Approach and Strategy:

• GJPN tracks a modified version of the MSCI Japan Index, focusing on undervalued stocks with potential for growth.
• The ETF invests primarily in large- and mid-cap Japanese stocks across various sectors.

Key Points:

• Actively managed ETF seeking to outperform the MSCI Japan Index.
• Invests in undervalued Japanese stocks with potential for growth.
• Managed by an experienced team with expertise in quantitative investing.
• Has historically outperformed the benchmark index.

Risks:

• GJPN is subject to market risk, including fluctuations in the value of Japanese stocks.
• The ETF's active management approach may not outperform the benchmark index.
• The ETF's focus on undervalued stocks may lead to higher volatility.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the Japanese equity market.
• Investors who believe in the potential for undervalued Japanese stocks to outperform the market.
• Investors comfortable with the risks associated with active management and a focus on value investing.

Fundamental Rating Based on AI:

• Rating: 8/10
• Justification: GJPN benefits from a strong reputation from Goldman Sachs, a proven track record of outperformance, and a focus on undervalued stocks with potential for growth. However, the ETF's active management approach carries a higher expense ratio and may not consistently outperform the benchmark index.

Resources and Disclaimers:

• Data sources:
  • Goldman Sachs Asset Management website
  • Morningstar
  • Bloomberg
• Disclaimer: 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.