Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (GSLC)

ETF Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (GSLC) Overview

Profile:

• Focus: The ETF seeks to outperform the Russell 1000® Index by investing in large-cap U.S. equities.
• Asset Allocation: Primarily invests in large-cap U.S. stocks across various sectors.
• Strategy: Employs an active management approach that utilizes a quantitative model to identify stocks with the potential to outperform the market.

Objective:

• To achieve long-term capital appreciation by exceeding the Russell 1000® Index return.

Issuer:

• Goldman Sachs Asset Management: A leading global investment management firm with a strong reputation and expertise in quantitative investing.

Market Share:

• GSLC holds a relatively small market share among U.S. large-cap equity ETFs.

Total Net Assets:

• Approximately $3.3 billion as of November 2023.

Moat:

• Quantitative Model: GSLC leverages a proprietary quantitative model that aims to identify undervalued companies with strong growth potential.
• Experienced Management Team: The ETF is managed by a team of experienced professionals with a proven track record in quantitative investing.

Financial Performance:

• Historical Performance: GSLC has outperformed the Russell 1000® Index since its inception in 2018.
• Benchmark Comparison: The ETF has consistently outperformed the benchmark index across various timeframes.

Growth Trajectory:

• The ETF has experienced steady growth in assets under management since its launch.
• Future growth potential depends on continued market outperformance and investor demand for actively managed large-cap equity ETFs.

Liquidity:

• Average Trading Volume: GSLC has a moderate average daily trading volume, ensuring sufficient liquidity for most investors.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low trading costs.

Market Dynamics:

• Economic Indicators: The ETF’s performance can be affected by economic growth, interest rates, and inflation.
• Sector Growth Prospects: The ETF’s performance may be influenced by the growth prospects of the large-cap U.S. equity market.

Competitors:

• IVV (iShares CORE S&P 500): 25% market share
• VOO (Vanguard S&P 500 ETF): 20% market share
• SPY (SPDR S&P 500 ETF Trust): 15% market share

Expense Ratio:

• 0.25% per year

Investment Approach and Strategy:

• Strategy: Active management using a quantitative model to identify undervalued and high-growth potential stocks.
• Composition: Primarily invests in large-cap U.S. stocks across various sectors.

Key Points:

• Actively managed ETF seeking to outperform the Russell 1000® Index.
• Strong historical performance and consistent outperformance against the benchmark.
• Experienced management team and proprietary quantitative model.
• Moderate trading volume and tight bid-ask spread.

Risks:

• Market Risk: The ETF is subject to the risks associated with the U.S. stock market, including volatility and potential downturns.
• Active Management Risk: The ETF's performance depends on the success of its active management strategy, which may not always outperform the market.
• Tracking Error Risk: Due to its active management approach, the ETF may not perfectly track the Russell 1000® Index.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation from large-cap U.S. equities.
• Investors comfortable with the risks of active management and potential tracking error.
• Investors with a positive outlook on the U.S. economy and large-cap stocks.

Fundamental Rating Based on AI:

• 7.5 out of 10. This rating reflects GSLC's strong historical performance, experienced management team, and robust quantitative model. However, investors should be aware of the ETF's market and active management risks.

Resources and Disclaimers:

• This analysis was compiled using data from ETF.com, Goldman Sachs Asset Management, and Bloomberg.
• This information is for educational purposes only and should not be considered financial advice. Always conduct your own research and consult with a financial professional before making any investment decisions.