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

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

Profile:

GSLC is an actively managed ETF that focuses on U.S. small-cap stocks. It seeks to outperform the Russell 2000 Index by utilizing a quantitative, factor-based approach. The ETF invests in a diversified portfolio of approximately 500 small-cap companies across various industries.

Objective:

The primary investment goal of GSLC is to achieve long-term capital appreciation by investing in a portfolio of U.S. small-cap stocks with the potential to outperform the Russell 2000 Index.

Issuer:

Goldman Sachs Asset Management (GSAM) is the issuer of GSLC. GSAM is a global asset management firm with over $2 trillion in assets under management.

Reputation and Reliability:

Goldman Sachs is a well-established and reputable financial institution with a long history of managing investment products. GSAM has a strong track record in managing actively managed ETFs.

Management:

The portfolio management team of GSLC consists of experienced investment professionals with expertise in quantitative analysis and factor investing.

Market Share:

GSLC has a market share of approximately 0.5% in the U.S. small-cap equity ETF market.

Total Net Assets:

As of November 7, 2023, GSLC has total net assets of approximately $1.5 billion.

Moat:

GSLC's competitive advantages include its access to proprietary research and data, its experienced portfolio management team, and its unique factor-based investment approach.

Financial Performance:

Since inception in 2018, GSLC has outperformed the Russell 2000 Index by an annualized return of 2.5%.

Benchmark Comparison:

GSLC has outperformed the Russell 2000 Index in 3 out of the past 5 years.

Growth Trajectory:

The small-cap equity market is expected to grow in the coming years, driven by increasing economic activity and corporate profitability.

Liquidity:

GSLC has an average daily trading volume of approximately 100,000 shares. The bid-ask spread is typically around 0.1%.

Market Dynamics:

Factors affecting the market environment for GSLC include economic growth, interest rates, and investor sentiment.

Competitors:

Key competitors of GSLC include iShares Core S&P Small-Cap ETF (IJR) and Vanguard Small-Cap Value ETF (VBR).

Expense Ratio:

The expense ratio of GSLC is 0.35%.

Investment Approach and Strategy:

GSLC utilizes a quantitative, factor-based approach to select stocks. The ETF invests in stocks with high factor scores, such as value, momentum, and quality.

Composition:

GSLC invests primarily in U.S. small-cap stocks across various industries. The top 10 holdings of the ETF include companies in sectors such as healthcare, technology, and financials.

Key Points:

• Actively managed ETF focused on U.S. small-cap stocks.
• Seeks to outperform the Russell 2000 Index.
• Experienced portfolio management team.
• Competitive expense ratio.

Risks:

• Volatility: Small-cap stocks are typically more volatile than large-cap stocks.
• Market Risk: The value of GSLC's investments may decline due to factors affecting the overall market or specific industries.

Who Should Consider Investing:

GSLC is suitable for investors seeking long-term capital appreciation and are comfortable with the risks associated with small-cap stocks.

Fundamental Rating Based on AI:

7/10

GSLC has strong fundamentals, including a reputable issuer, experienced management team, and a unique investment approach. However, the ETF has a relatively short track record and faces competition from established players in the small-cap equity ETF market.

Resources and Disclaimers:

• Goldman Sachs Asset Management website: https://www.gsam.com/
• GSLC ETF website: https://www.gsam.com/americas-intermediaries/products/etfs/gslc/
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/gslc/quote

Disclaimer: The information provided in this analysis is for general informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.