In an increasingly crowded field of new exchange-traded products, the
Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (Ticker:
GSLC) was noted one of two “Best New ETFs of 2015” by Morningstar
ETFInvestor1.
Selected from 261 ETFs launched as of December 3, 2015, the December
issue of ETFInvestor article reviewed the “The Best and Worst New ETFs
of 2015” and highlighted that the “low fee and relatively modest factor
bets make GSLC a potential low-risk, medium-reward (relative to a
cap-weighted U.S. large-cap exposure) proposition.”
“We are honored that GSLC has been mentioned as one of the best new ETFs
of 2015 by Morningstar ETFInvestor. This recognition underscores our
team’s commitment to producing unique investment solutions that not only
meet but exceed the needs of our clients, and we look forward to being
at the forefront of continued innovation in the ETF space,” said Michael
Crinieri, Global Head of ETF Strategies at Goldman Sachs Asset
Management (GSAM).
GSAM entered the ETF market in September with the launch of GSLC and the
ActiveBeta® Emerging Markets Equity ETF (Ticker: GEM),
followed by the Goldman Sachs ActiveBeta® International
Equity ETF (Ticker: GSIE) in November. Unlike traditional ETFs that
track a market cap-weighted index, GSAM’s ActiveBeta® ETFs
track the firm’s proprietary ActiveBeta® indices, which
utilize a methodology that offers the potential to outperform the market.
GSAM’s Quantitative Investment Strategies team, with approximately $65
billion in assets under management and more than 15 years of experience
in managing smart beta strategies, oversees the management of the
Goldman Sachs ActiveBeta® ETFs2. Since launching
in September 2015, the assets of the three Goldman Sachs ActiveBeta®
ETF Funds have grown to $820 million as of December 16, 2015.
GSAM is the asset management arm of The Goldman Sachs Group, Inc.
(NYSE:GS), which supervises $1.19 trillion in assets as of September 30,
20153. 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.
1 Source: Morningstar ETFInvestor, Vol. 10 No 4, December
2015.
2 Source: GSAM, as of September 30, 2015
3 Assets Under Supervision (AUS) includes assets under
management and other client assets for which Goldman Sachs does not have
full discretion.
The Goldman Sachs ActiveBeta® US Large Cap Equity ETF is
priced competitively at 9 basis points (bps) after expense limitation,
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 35 bps, and the average fund fee for the Morningstar
US ETF Large Blend Strategic Beta Classification is 37 bps. “Smart beta”
refers to quantitative index-based strategies. Source: Morningstar, as
of November 11, 2015. This data only includes ETFs.
Ordinary brokerage commissions apply. Brokerage commissions will reduce
returns.
Please note that the fund managers of the Goldman Sachs ActiveBeta® ETFs
are Steve Jeneste and Raj Garigipati. Please refer to the Prospectus for
further information.
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.
Given each Fund’s investment objective of attempting to track its
respective Index, the Funds do 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.
ADI is the distributor for SPDR S&P 500 ETF Trust (SPY).
SPDR S&P 500 ETF Trust (SPY) is a Unit Investment Trust (UIT).
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: 25801.OPU.GST167
Date of first use: 12/22/15
ALPS Control: GST 167 ED 12/22/2016
© 2015 Goldman Sachs. All rights reserved.
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