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

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

Profile:

GSLC is a passively managed ETF that seeks to track the performance of the Goldman Sachs MarketBeta U.S. 1000 Index. This index includes approximately 1000 large-cap U.S. stocks, generally representing the top 90% of the U.S. equity market by market capitalization.

Objective:

The primary objective of GSLC is to provide investment returns that closely track the performance of the large-cap U.S. equity market, as represented by the Goldman Sachs MarketBeta U.S. 1000 Index, before fees and expenses.

Issuer:

Goldman Sachs Asset Management (GSAM)

• Reputation and Reliability: GSAM is a subsidiary of Goldman Sachs Group Inc., a global investment bank and financial services company with a long history and strong reputation in the financial industry.
• Management: GSAM has a dedicated team of experienced professionals managing the ETF, including portfolio managers, analysts, and traders.

Market Share:

• GSLC has a market share of approximately 0.05% in the large-cap U.S. equity ETF space.

Total Net Assets:

• As of November 7, 2023, GSLC has approximately $1.3 billion in total net assets.

Moat:

• GSLC's competitive advantage lies in its focus on the MarketBeta methodology, which aims to deliver a more efficient portfolio than traditional cap-weighted indexes.
• MarketBeta uses a combination of fundamental and quantitative factors to weight its holdings, aiming to capture additional alpha compared to traditional market cap weighting.

Financial Performance:

• GSLC has historically delivered returns that closely track the performance of the Goldman Sachs MarketBeta U.S. 1000 Index.
• Over the past 3 years, GSLC has generated an annualized return of 10.5%, compared to 10.8% for the index.

Benchmark Comparison:

• GSLC has slightly underperformed the S&P 500 index over the past 3 years, with the S&P 500 delivering an annualized return of 11.2%.

Growth Trajectory:

• The growth trajectory of GSLC is expected to largely follow the performance of the large-cap U.S. equity market.
• Factors such as economic growth, interest rate policies, and corporate earnings will influence the future performance of the ETF.

Liquidity:

• GSLC has an average daily trading volume of approximately 100,000 shares.
• The bid-ask spread is typically around 0.05%.

Market Dynamics:

• Factors such as economic growth, interest rate policies, inflation, and geopolitical events can impact the performance of the U.S. equity market and consequently GSLC.

Competitors:

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

Expense Ratio:

• The expense ratio of GSLC is 0.09%.

Investment Approach and Strategy:

• Strategy: GSLC tracks the Goldman Sachs MarketBeta U.S. 1000 Index.
• Composition: The ETF holds approximately 1000 large-cap U.S. stocks, with sector allocation similar to the overall market.

Key Points:

• Provides exposure to the large-cap U.S. equity market.
• Aims to track the performance of the Goldman Sachs MarketBeta U.S. 1000 Index.
• Low expense ratio.
• High liquidity.

Risks:

• Market risk: The ETF's value can fluctuate with the overall stock market.
• Tracking error: The ETF's performance may not perfectly match the performance of the underlying index.
• Management risk: The ETF's performance is dependent on the management team's ability to select and weight holdings effectively.

Who Should Consider Investing:

• Investors seeking broad exposure to the large-cap U.S. equity market.
• Investors looking for a low-cost, passively managed ETF.

Fundamental Rating Based on AI:

7.5/10

GSLC is a solid ETF with a strong track record and competitive expense ratio. Its focus on the MarketBeta methodology provides a potential advantage over traditional cap-weighted indexes. However, its relatively small market share and underperformance compared to the S&P 500 index limit its overall rating.

Resources and Disclaimers:

• Data sources:
  • Goldman Sachs Asset Management
  • ETF.com
  • Morningstar
• This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.