Goldman Sachs Asset Management (“GSAM”) today announced that there will
be zero capital gains distributions in 2015 in their series of ActiveBeta®
Exchange-Traded Funds (“ETFs”).
Since the listing of its first ETF on September 21, 2015, GSAM has
launched a total of three ETFs that seek to track the Goldman Sachs
ActiveBeta® U.S. Large Cap Equity Index, the Goldman
Sachs ActiveBeta® Emerging Markets Equity Index and
the Goldman Sachs ActiveBeta® International Equity
Index, respectively, each of which utilizes a proprietary,
performance-seeking methodology that delivers the potential to
outperform the market:
-
The Goldman Sachs ActiveBeta® U.S Large Cap Equity
ETF (Ticker: GSLC)
-
The Goldman Sachs ActiveBeta® Emerging Markets
Equity ETF (Ticker: GEM)
-
The Goldman Sachs ActiveBeta® International Equity
ETF (Ticker: GSIE)
“Our ActiveBeta® products are designed to offer
investors the advantages of traditional exchange-traded funds1,
such as a defined strategy, diversified exposure to stocks and low
costs, with the additional opportunity to outperform the market,” said
Michael Crinieri, Global Head of ETF Strategies at GSAM. “We are
dedicated to providing unique, cost-efficient2 investment
solutions to our clients.”
Each ActiveBeta® Index weights stocks based on four
well-established attributes of performance:
1. Value — The index identifies stocks from companies that may be
undervalued by the rest of the market. This can help investors to gain
exposure to high potential stocks that others may have overlooked.
2. Momentum — The index identifies stocks with prices that have
been growing. This allows investors to participate in market trends.
3. Quality — The index identifies stocks from companies that
demonstrate sustainable profitability over time. This enables investors
to gain exposure to companies with strong fundamentals and potential for
consistent returns.
4. Low volatility — The index identifies stocks from companies
that are likely to avoid extreme price swings. This aims to smooth out
the ride, so investors can stay invested for the long term.
Since it began trading on September 21, 2015, GSLC has grown to over
$202 million in assets. Since it began trading on September 29, 2015,
GEM has grown to over $540 million in assets. Since it began trading on
November 10, 2015, GSIE has grown to over $33 million in assets, all as
of December 14, 2015. On November 30, 2015, GSLC had its single highest
trading volume to date of 1,468,730 shares3.
GSAM is the asset management arm of The Goldman Sachs Group, Inc.
(NYSE:GS), which supervises $1.19 trillion in assets as of November 11,
20154. Goldman Sachs Asset Management has been providing
discretionary investment advisory services since 1988 and has investment
professionals in all major financial centers around the world. The
company offers investment strategies across a broad range of asset
classes to institutional and individual clients globally. Founded in
1869, Goldman Sachs is a leading global investment banking, securities
and investment management firm that provides a wide range of financial
services to a substantial and diversified client base that includes
corporations, financial institutions, governments and high-net-worth
individuals.
1Traditional ETFs refer to market-cap weighted strategies
designed to track a given market or index, and offer benefits such as a
defined strategy, diversified exposure to stocks and low costs.
2 ActiveBeta® ETFs use a passive investing
strategy like traditional ETFs to keep costs competitive.
The
Goldman Sachs ActiveBeta® US Large Cap Equity ETF is priced
competitively at 9 basis points (bps) based on a universe of funds that
include traditional market cap-weighted ETFs and smart beta ETFs. For
example, the fee for the largest ETF by AUM, the SPDR S&P 500 ETF Trust
(SPY), is priced at 9 bps. Additionally, the average fund fee for the
Morningstar US ETF Large Blend Category is 36 bps, and the average fund
fee for the Morningstar US ETF Large Blend Strategic Beta Classification
is 38 bps. “Smart beta” refers to quantitative index-based strategies.
Source: Morningstar, as of November 11, 2015. The Goldman Sachs
ActiveBeta® Emerging Markets Equity ETF is priced at 45 basis
points (bps) (after expense limitation). GEM is 34% lower cost than the
most liquid Emerging Market Equity ETF by volume, and more than 22%
lower in cost relative to the Morningstar Diversified Emerging Markets
category Strategic Beta average, as of September 29, 2015. This is based
on Morningstar’s definition of Strategic Beta as well as Morningstar’s
definition of the Multi-factor Strategic Beta Attribute as of September
29, 2015. The Goldman Sachs ActiveBeta® International Equity
ETF is priced at 35 basis points (bps) (after expense limitation).
GSIE’s expense ratio is 26% lower cost than the Strategic Beta average
in the Foreign Large Blend Morningstar Category and 13% lower than the
Index Fund average in the category, as of October 2, 2015. This is based
on Morningstar’s definition of Strategic Beta as well as Morningstar’s
definition of the Multi-factor Strategic Beta Attribute as of October 2,
2015. This data only includes ETFs.
3 Source: Bloomberg
4 Assets Under Supervision (AUS) includes assets under
management and other client assets for which Goldman Sachs does not have
full discretion.
Ordinary brokerage commissions apply. Brokerage
commissions will reduce returns.
ActiveBeta® is a registered trademark of GSAM and has been
licensed for use by Goldman Sachs ETF Trust. The ActiveBeta®
Portfolio Construction and Maintenance Methodology is the
patent-protected property of GSAM (U.S. Patent Numbers 8,285,620 and
8,473,398).
Fund Risk Considerations
Goldman Sachs ActiveBeta® International
Equity ETF
The Goldman Sachs ActiveBeta® International
Equity ETF(the “Fund”) seeks to provide investment results that
closely correspond, before fees and expenses, to the performance of the
Goldman Sachs ActiveBeta® International Equity Index (the
“Index”), which delivers exposure to equity securities of developed
markets issuers outside of the United States. The Fund’s equity
investments are subject to market risk, which means that the
value of the securities in which it invests may go up or down in
response to the prospects of individual companies, particular sectors
and/or general economic conditions. Foreign investments may be
more volatile and less liquid than investments in U.S. securities and
are subject to the risks of currency fluctuations and adverse economic
or political developments. Because the Fund may concentrate its
investments in an industry or group of industries to the extent that
the Index is concentrated, the Fund may be subject to greater risk of
loss as a result of adverse economic, business or other developments
affecting that industry or group of industries. The securities of mid-
and small-capitalization companies involve greater risks than those
associated with larger, more established companies and may be subject to
more abrupt or erratic price movements. The Fund is not actively
managed, and therefore the Fund will not generally dispose of a
security unless the security is removed from the Index. The Index calculation
methodology may rely on information based on assumptions and
estimates and neither the Fund nor its investment adviser can guarantee
the accuracy of the methodology’s assessment of included issuers. Performance
may vary substantially from the performance of the Index as a result
of transaction costs, expenses and other factors.
Goldman Sachs ActiveBeta® Emerging Markets Equity ETF
The Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (the
“Fund”) seeks to provide investment results that closely correspond,
before fees and expenses, to the performance of the Goldman Sachs
ActiveBeta® Emerging Markets Equity Index (the “Index”), which
delivers exposure to equity securities of emerging market
issuers. The Fund’s equity investments are subject to market
risk, which means that the value of the securities in which it
invests may go up or down in response to the prospects of individual
companies, particular sectors and/or general economic conditions. Foreign
and emerging markets investments may be more volatile and less
liquid than investments in U.S. securities and are subject to the risks
of currency fluctuations and adverse economic or political developments.
Because the Fund may concentrate its investments in an
industry or group of industries to the extent that the Index is
concentrated, the Fund may be subject to greater risk of loss as a
result of adverse economic, business or other developments affecting
that industry or group of industries. The securities of mid- and small-capitalization
companies involve greater risks than those associated with larger,
more established companies and may be subject to more abrupt or erratic
price movements. The Fund effects creation and redemption transactions
partially for cash, which means an investment in the Fund may be
less tax-efficient than an investment in a conventional exchange-traded
fund. The Fund is not actively managed, and therefore the
Fund will not generally dispose of a security unless the security is
removed from the Index. The Index calculation methodology may
rely on information based on assumptions and estimates and neither the
Fund nor its investment adviser can guarantee the accuracy of the
methodology’s assessment of included issuers. Performance may vary
substantially from the performance of the Index as a result of
transaction costs, expenses and other factors.
Goldman Sachs ActiveBeta® U.S. Large Cap
Equity ETF
The Goldman Sachs ActiveBeta® U.S. Large Cap
Equity ETF (the “Fund”) seeks to provide investment results that
closely correspond, before fees and expenses, to the performance of the
Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index (the
“Index”), which delivers exposure to equity securities of
large-capitalization U.S. issuers. The Fund’s equity investments are
subject to market risk, which means that the value of the
securities in which it invests may go up or down in response to the
prospects of individual companies, particular sectors and/or general
economic conditions. Because the Fund may concentrate its investments in
an industry or group of industries to the extent that the Index is
concentrated, the Fund may be subject to greater risk of loss as a
result of adverse economic, business or other developments affecting
that industry or group of industries. The Fund is not actively managed,
and therefore the Fund will not generally dispose of a security unless
the security is removed from the Index. The Index calculation
methodology may rely on information based on assumptions and
estimates and neither the Fund nor its investment adviser can guarantee
the accuracy of the methodology’s assessment of included issuers. Performance
may vary substantially from the performance of the Index as a result
of transaction costs, expenses and other factors
Shares of each fund are not individually redeemable and are issued
and redeemed by the Fund at their net asset value (“NAV”) only in large,
specified blocks of shares called creation units. Shares otherwise can
be bought and sold only through exchange trading at market price (not
NAV). Shares may trade at a premium or discount to their NAV in the
secondary market. Brokerage commissions will reduce returns.
Each Fund is recently or newly organized and has limited or no operating
history.
Investors can lose money by investing in the Funds. For additional risk
considerations, please see the above disclosures.
The Goldman Sachs ActiveBeta® International Equity Index (“the
Index”) is designed to deliver exposure to equity securities of
developed markets issuers outside the United States. The Index is
constructed using the patented ActiveBeta® Portfolio Construction
Methodology, which was developed to provide exposure to the “factors”
(or characteristics) that are commonly tied to a stock’s outperformance
relative to market returns. These factors include value (i.e., how
attractively a stock is priced relative to its “fundamentals,” such as
book value and free cash flow), momentum (i.e., whether a company’s
share price is trending up or down), quality (i.e., profitability) and
low volatility (i.e., a relatively low degree of fluctuation in a
company’s share price over time). Given the Fund’s investment objective
of attempting to track its Index, the Fund does not follow traditional
methods of active investment management, which may involve buying and
selling securities based upon analysis of economic and market factors.
The Goldman Sachs ActiveBeta® Emerging Markets Equity Index (“the
Index”) is designed to deliver exposure to equity securities of emerging
market issuers. The Index is constructed using the patented ActiveBeta®
Portfolio Construction Methodology, which was developed to provide
exposure to the “factors” (or characteristics) that are commonly tied to
a stock’s outperformance relative to market returns. These factors
include value (i.e., how attractively a stock is priced relative to its
“fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down), quality (i.e.,
profitability) and low volatility (i.e., a relatively low degree of
fluctuation in a company’s share price over time). Given the Fund’s
investment objective of attempting to track its Index, the Fund
does not follow traditional methods of active investment management,
which may involve buying and selling securities based upon analysis of
economic and market factors.
The Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index (“the
Index”) is designed to deliver exposure to equity securities of large
capitalization U.S. issuers. The Index is constructed using the patented
ActiveBeta® Portfolio Construction Methodology,
which was developed to provide exposure to the “factors” (or
characteristics) that are commonly tied to a stock’s outperformance
relative to market returns. These factors include value (i.e., how
attractively a stock is priced relative to its “fundamentals,” such as
book value and free cash flow), momentum (i.e., whether a company’s
share price is trending up or down), quality (i.e., profitability) and
low volatility (i.e., a relatively low degree of fluctuation in a
company’s share price over time). Given the Fund’s investment objective
of attempting to track its Index, the Fund does not follow traditional
methods of active investment management, which may involve buying and
selling securities based upon analysis of economic and market factors.
Please note that one may not invest directly into an index.
ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETFs.
ALPS
Distributors, Inc. is unaffiliated with Goldman Sachs Asset Management.
Please consider a Fund's objectives, risks, and charges and expenses,
and read the summary prospectus, if available, and the Prospectus
carefully before investing. A summary prospectus, if available, or a
Prospectus for the Fund containing more information may be obtained from
your authorized dealer or from Goldman, Sachs & Co. by calling
(1-800-621-2550).
Compliance code: 23698.OTU
Date of first use: 12/15/15
ALPS
Control: GST 162
© 2015 Goldman Sachs. All rights reserved.
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