Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF (GSSC)GSSC

ETF Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF (GSSC)

Profile:

The Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF (GSSC) is an actively managed ETF that seeks to outperform the Russell 2000 Index by investing in a diversified portfolio of small-cap U.S. stocks. The fund utilizes a quantitative model to select stocks with specific fundamental characteristics and risk factors, aiming to achieve a higher risk-adjusted return compared to the benchmark.

Objective:

GSSC's primary objective is to provide investors with long-term capital appreciation through active management of a portfolio of U.S. small-cap stocks. The fund aims to outperform the Russell 2000 Index by identifying and investing in companies with attractive growth potential and favorable risk profiles.

Issuer:

Goldman Sachs Asset Management:

• Reputation and Reliability: Goldman Sachs is a leading global investment bank and financial services firm with a long and successful track record in managing assets.
• Management: The ETF is managed by an experienced team of portfolio managers and analysts with expertise in quantitative modeling and small-cap stock selection.

Market Share:

GSSC holds a small market share within the U.S. small-cap equity ETF space. As of November 2023, the fund manages approximately $1.5 billion in assets.

Total Net Assets:

$1.5 billion (as of November 2023)

Moat:

• Active Management: GSSC's active management approach allows the portfolio managers to identify and invest in companies with strong growth potential that may be overlooked by traditional index-tracking strategies.
• Quantitative Model: The utilization of a quantitative model provides a systematic and disciplined approach to stock selection, aiming to achieve superior risk-adjusted returns.
• Experienced Management Team: The ETF benefits from the expertise and experience of Goldman Sachs' asset management team.

Financial Performance:

GSSC has outperformed the Russell 2000 Index since its inception in 2018. However, past performance is not indicative of future results, and investors should carefully consider the risks involved before investing.

Benchmark Comparison:

GSSC has consistently outperformed the Russell 2000 Index since its inception. However, it is important to note that the outperformance may not persist in the future.

Growth Trajectory:

The small-cap equity market is expected to continue experiencing growth in the long term. However, the specific growth rate of GSSC will depend on various factors, including market conditions and the performance of the underlying portfolio.

Liquidity:

• Average Trading Volume: The average daily trading volume for GSSC is approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread for GSSC is typically around 0.05%.

Market Dynamics:

Factors affecting the small-cap equity market and GSSC include economic growth, interest rates, inflation, and investor sentiment.

Competitors:

• iShares Core S&P Small-Cap ETF (IJR)
• Vanguard Small-Cap Value ETF (VBR)
• Schwab Small-Cap ETF (SCHA)

Expense Ratio:

0.35%

Investment Approach and Strategy:

• Strategy: Active management with a focus on identifying small-cap companies with attractive growth potential and favorable risk profiles.
• Composition: The portfolio consists of approximately 250-350 small-cap U.S. stocks.

Key Points:

• Actively managed ETF seeking to outperform the Russell 2000 Index.
• Quantitative model-driven stock selection process.
• Experienced management team from Goldman Sachs Asset Management.
• Outperformed the benchmark since inception.

Risks:

• Market Risk: The value of the ETF's holdings can fluctuate based on market conditions, potentially leading to losses.
• Small-Cap Risk: Small-cap stocks are typically more volatile than large-cap stocks, increasing the risk of potential losses.
• Active Management Risk: The ETF's performance depends on the success of the portfolio managers' stock selection decisions.

Who Should Consider Investing:

Investors seeking long-term capital appreciation from actively managed exposure to the U.S. small-cap equity market should consider GSSC. Investors should have a high tolerance for risk and be comfortable with the potential for volatility.

Fundamental Rating Based on AI:

Based on publicly available data, an AI-based system rates GSSC with a 7 out of 10. This rating considers factors such as the fund's financial performance, market position, fees, and management team. However, this is an indicative rating, and investors should conduct their own due diligence before making investment decisions.

Resources:

• Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF website: https://www.goldmansachs.com/insights/pages/gs-activebeta-us-small-cap-equity-etf.html
• ETF.com: https://www.etf.com/etf-profile/equity/gs-activebeta-us-small-cap-equity-etf-gscc
• Morningstar: https://www.morningstar.com/etfs/xnas/gscc/quote

Disclaimer:

The information provided above is for informational purposes only and should not be considered investment advice. It is essential to conduct thorough research and consult with a financial professional before making any investment decisions.