Goldman Sachs JUST U.S. Large Cap Equity ETF (JUST)

Overview of ETF Goldman Sachs JUST U.S. Large Cap Equity ETF (JUST)

Profile:

Focus: JUST invests in large-cap U.S. equities of companies aligned with JUST Capital's rankings of the most responsible companies in America. This means focusing on companies with strong social and environmental performance.

Asset Allocation: At least 80% of the fund's assets are invested in common stocks of large-cap U.S. companies. The remaining 20% may be invested in other securities, including cash and cash equivalents.

Investment Strategy: JUST employs a passively managed, rules-based approach. The ETF tracks the JUST U.S. Large Cap Diversified Index, which selects and weights constituents based on JUST Capital's rankings and other quantitative factors.

Objective:

The primary investment goal of JUST is to provide long-term capital appreciation while investing in companies with strong social and environmental performance.

Issuer:

Goldman Sachs Asset Management: A global asset management firm with a long history and strong reputation.

Reputation and Reliability: Goldman Sachs enjoys a solid reputation in the financial industry, known for its expertise and innovative solutions. However, it has also faced controversies in the past.

Management: The ETF is managed by a team of experienced professionals with expertise in ESG investing and quantitative analysis.

Market Share:

As of November 2023, JUST has a market share of approximately 0.4% in the U.S. large-cap equity ESG ETF category.

Total Net Assets:

The ETF has approximately $1.2 billion in total net assets as of November 2023.

Moat:

• Unique Focus: JUST offers exposure to a niche market of large-cap U.S. companies with strong ESG performance.
• Experienced Management: The ETF is managed by a team with a proven track record in ESG investing.
• Access to Goldman Sachs' Research: The ETF benefits from the research and insights of a leading global investment bank.

Financial Performance:

Historical Performance: Since its inception in 2019, JUST has generated an annualized return of approximately 10%.

Benchmark Comparison: The ETF has outperformed the S&P 500 Index over the same period.

Growth Trajectory:

The demand for ESG investing is expected to continue growing, potentially benefiting JUST's future performance.

Liquidity:

• Average Trading Volume: Approximately 100,000 shares per day.
• Bid-Ask Spread: Relatively tight, indicating good liquidity.

Market Dynamics:

• Positive: Growing investor interest in ESG investing and increasing awareness of social and environmental issues.
• Negative: Potential for market volatility and regulatory changes impacting the ESG landscape.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU) - Market share: 25%
• SPDR S&P 500 ESG Index ETF (EFIV) - Market share: 15%
• Xtrackers S&P 500 ESG ETF (SNPE) - Market share: 10%

Expense Ratio:

The expense ratio is 0.25%.

Investment Approach and Strategy:

• Strategy: Passively track the JUST U.S. Large Cap Diversified Index.
• Composition: Primarily large-cap U.S. stocks with high ESG ratings.

Key Points:

• Invests in socially responsible companies with strong ESG performance.
• Track record of outperforming the S&P 500.
• Managed by an experienced team with access to Goldman Sachs' research.
• Relatively low expense ratio.

Risks:

• Market volatility.
• Potential underperformance compared to the broader market.
• Concentration risk in large-cap stocks.
• Dependence on JUST Capital's rankings and methodology.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation while aligning their investments with social and environmental values.
• Investors interested in the large-cap U.S. equity market with a focus on ESG principles.

Fundamental Rating Based on AI: 7.5/10

JUST demonstrates strong fundamentals based on AI analysis, supported by its:

• Solid financial performance: Outperformance compared to the benchmark.
• Experienced management: Expertise in ESG investing and quantitative analysis.
• Unique market focus: Niche exposure to large-cap U.S. companies with strong ESG performance.

However, potential risks such as market volatility and dependence on JUST Capital's methodology warrant consideration.

Resources and Disclaimers:

• Data sources: Goldman Sachs JUST U.S. Large Cap Equity ETF website, Yahoo Finance, Morningstar.
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.