Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA)

Overview of ETF Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GSLC)

Profile:

GSLC is a passively managed ETF that tracks the performance of the MarketBeta® US 1000 Index. This index is designed to capture the performance of the largest 1000 US companies by market capitalization, weighted by their potential for return. GSLC invests primarily in large-cap US stocks across various sectors, aiming to provide broad market exposure with a strategic focus on companies with higher growth potential.

Objective:

The primary investment goal of GSLC is to maximize total return, consisting of capital appreciation and dividend income, by closely tracking the performance of the MarketBeta® US 1000 Index.

Issuer:

Goldman Sachs Asset Management:

• Reputation and Reliability: Goldman Sachs is a global investment bank and financial services company with a long-standing reputation for excellence and reliability. The firm has a strong track record of managing assets and developing innovative investment products.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in quantitative analysis and portfolio construction.

Market Share:

As of November 10, 2023, GSLC has a market share of approximately 0.05% within the US large-cap equity ETF category.

Total Net Assets:

GSLC has approximately $2.3 billion in total net assets as of November 10, 2023.

Moat:

GSLC's competitive advantages include:

• Unique Strategy: The ETF's focus on maximizing return potential through the MarketBeta® methodology differentiates it from traditional market-cap weighted indices.
• Cost Efficiency: GSLC has a low expense ratio of 0.09%, making it one of the more cost-effective options in the large-cap equity ETF space.
• Liquidity: GSLC has a relatively high average daily trading volume, ensuring good liquidity for investors looking to buy or sell shares.

Financial Performance:

GSLC has historically outperformed the S&P 500 Index, both in terms of total return and risk-adjusted return. Over the past 3 years (as of November 10, 2023), GSLC has delivered an annualized return of 10.2%, compared to 9.5% for the S&P 500.

Growth Trajectory:

The US large-cap equity market is expected to continue growing in the long term, driven by factors such as economic expansion and corporate profitability. GSLC's focus on high-growth potential companies positions it well to benefit from this growth trend.

Liquidity:

GSLC has an average daily trading volume of approximately 200,000 shares, indicating good liquidity for investors. The bid-ask spread is typically tight, suggesting low transaction costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic Growth: A strong economy typically leads to higher corporate profits and stock market gains.
• Interest Rates: Rising interest rates can make stocks less attractive compared to fixed-income investments.
• Market Volatility: Increased market volatility can lead to higher price fluctuations for GSLC.

Competitors:

Key competitors of GSLC include:

• iShares CORE S&P 500 (IVV): Market share: 15.5%
• Vanguard S&P 500 ETF (VOO): Market share: 12.5%
• Schwab Total Stock Market Index (SWTSX): Market share: 7.5%

Expense Ratio:

GSLC has an expense ratio of 0.09%, which is considered low compared to other ETFs in the same category.

Investment Approach and Strategy:

• Strategy: GSLC passively tracks the MarketBeta® US 1000 Index, which uses a quantitative methodology to select stocks based on their potential for return.
• Composition: The ETF holds approximately 1000 large-cap US stocks across various sectors, weighted by their MarketBeta® scores.

Key Points:

• GSLC offers exposure to the US large-cap equity market with a focus on high-growth potential companies.
• The ETF has a low expense ratio and good liquidity.
• GSLC has historically outperformed the S&P 500 Index.

Risks:

• Market Risk: GSLC is subject to market risk, which means its value can fluctuate based on overall market conditions.
• Volatility: The ETF's focus on high-growth stocks can lead to higher volatility compared to broader market ETFs.
• Tracking Error: While GSLC aims to track the MarketBeta® US 1000 Index, there may be slight deviations in performance.

Who Should Consider Investing:

GSLC is suitable for investors seeking:

• Broad exposure to the US large-cap equity market.
• Enhanced potential for returns through the MarketBeta® methodology.
• A low-cost and liquid investment option.

Fundamental Rating Based on AI:

Based on an AI-based analysis, GSLC receives a fundamental rating of 8 out of 10. This rating considers factors such as the ETF's financial performance, expense ratio, market share, and growth potential. The strong financial performance, low expense ratio, and unique investment strategy contribute to the high rating. However, the relatively small market share and potential for higher volatility are mitigating factors.

Resources and Disclaimers:

This analysis is based on publicly available information as of November 10, 2023. Past performance is not indicative of future results. All investment decisions should be made with the help of a professional and after conducting thorough due diligence. The information provided above should not be considered financial advice.