Goldman Sachs Active Beta ETFs

Goldman Sachs ETFs

ACTIVEBETA® 1 of 4

ACCESS BONDS 2 of 4

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TREASURY ACCESS 4 of 4

Next Generation of ETF Investing

Over the last two decades, investors have increasingly turned to Exchange-Traded Funds (ETFs) seeking to benefit from a defined strategy, diversified exposure to stocks, tax efficiency and low costs. Today, we combine the potential benefits of ETFs with the advanced strategies of Goldman Sachs Asset Managment (GSAM).

What Are the Potential Benefits of ETFs?

ETFs have grown in popularity due to the many benefits they offer: intraday trading ease, relative transparency and a likelihood of tax efficiency—all typically at lower total cost than most actively managed mutual funds.

The Four Ts

Source: GSAM. For illustrative purposes only.

We note that ETFs are not riskless investments, so investors can lose money. Please see the ETF Risk Disclosures for additional risk considerations in the end disclosures. Ordinary brokerage commissions apply. Brokerage commissions will reduce returns.

Goldman Sachs does not provide legal, tax or accounting advice to its clients. All investors are strongly urged to consult with their legal, tax, or accounting advisors regarding any potential transactions or investments. There is no assurance that the tax status or treatment of a proposed transaction or investment will continue in the future. Tax treatment or status may be changed by law or government action in the future or on a retroactive basis.

Exponential Growth of the ETF Market

Developed in the early 1990s with lower cost, transparency and tax efficiency in mind, today there are ETFs representing both broad and narrow sectors of the market, and hundreds of ways to diversify. With $2 trillion in investor assets, it’s safe to say that ETFs are here to stay.

Growth of ETFs

Next Generation of Equity Index Investing

GSAM has developed a series of ETFs built on smart beta1 principles—a transparent, rules-based strategy that goes beyond stocks’ market capitalization, resulting in a more economically intuitive way to invest.

Goldman Sachs ActiveBeta™ ETFs

These ETFs are designed to track an ActiveBeta® Index, a proprietary performance-seeking methodology from Goldman Sachs, which tilts towards stocks based on four well-established drivers of performance, often referred to as factors.

The Four Factors

The Advantages of Goldman Sachs ActiveBeta™ Investing

Opportunity to Outperform the Market

To construct the ActiveBeta® Index, GSAM employs a simple, transparent process that helps identify and emphasize stocks within the market-cap weighted universe, potentially providing greater returns.

A Diversified Approach

Individual factors can be cyclical in the short run, which may lead to timing and performance challenges. Combining four complementary smart beta factors equally can potentially result in a more consistent investment experience over time.

Lower Cost

Not only are ActiveBeta™ ETFs a fraction of the price of most smart beta ETFs, they are also among the most competitively priced products on the market.²

Source: Morningstar and GSAM as of May 16, 2016. For illustrative purposes only.
There is no guarantee that these objectives will be met. ActiveBeta® is a trademark of Goldman Sachs. 9.0 bps (after expense limitation) for ActiveBeta® U.S. Large Cap Equity ETF refers to the Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF. 9.5 bps for largest ETF by Assets under Management (AUM) refers to the SPDR S&P 500 ETF Trust (SPY). ALPS Distributors, Inc. is the distributor for the SPDR S&P 500 ETF Trust (SPY). 35.3 bps refers to the average fund fee for Strategic Beta ETFs in the Morningstar US ETF Large Blend Category and 32.2 bps refers to the average fund fee of index ETFs in the Morningstar US ETF Large Blend Category.

ActiveBeta™ ETFs Brochure

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Next Generation Fixed Income Investing

GSAM now offers the next generation, smart beta Access ETFs that seek better risk-adjusted returns to help meet the needs of today’s fixed income investor.

Access ETFs by Goldman Sachs

GSAM’s Access ETFs can help investors build efficient fixed income portfolios. Going a step further than traditional market-value weighted methodology, a smart beta approach selects bonds based on liquidity and customized fundamentals.

The Advantages of Goldman Sachs Fixed Income Investing

Smarter Access to Bond Markets

The index employs a simple, transparent process that helps identify an investible universe, then eliminates issuers with relative deteriorating fundamentals to offer exposure to existing sector or market beta.

Seeks Smoother Performance, Less Volatility

As bond investors look for income and diversification, a smart beta approach seeks liquidity while minimizing exposure to factors historically associated with volatility and underperformance.

Lower Cost

Access ETFs are among the most competitively priced ETFs on the market. They also offer transparency and can alleviate some of the challenges of buying bonds in the over-the-counter market.³

Source: GSAM and Morningstar. Data as of March 31, 2017. For illustrative purposes only. The GS Access Investment Grade Corporate Bond ETF expense ratio is 14 basis points (bp). Please see the end notes for expense ratio and other important disclosures. Category expense ratios represent category averages for all funds in the corporate bond category as defined by Morningstar. The average net expense ratio for ETFs in the category is 19 bps and for active and passive mutual funds combined, I-Shares only, it is 57 bps.

Access ETFs Brochure

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Access to Top Insights

GSAM developed the Goldman Sachs Hedge Fund VIP Index, which tracks insights from some of the leading thinkers in the hedge fund universe. The Goldman Sachs Hedge Industry VIP ETF seeks to track this index and provides exposure to hedge fund managers’ most important long equity ideas.

Introducing the Goldman Sachs Hedge Industry VIP ETF (Ticker: GVIP)

The fund seeks to track the Goldman Sachs Hedge Fund VIP Index, which is constructed in accordance with a rules-based methodology derived from concepts previously developed by Goldman Sachs’ Global Investment Research division. The Index is designed to measure the performance of fundamentally-driven hedge fund managers' “Very-Important-Positions” — those positions that appear most frequently among their top 10 long equity holdings. The Goldman Sachs Hedge Industry VIP ETF (Ticker: GVIP) seeks to deliver these high-conviction ideas through the ease, transparency and liquidity of an ETF.

The Advantages of Investing in GVIP

The Fund is not a hedge fund and does not invest in hedge funds.

^1.ETFs offer many benefits, including intraday trading, relative transparency and tax efficiency potential, all at typically lower expense ratios than most actively-managed mutual funds.

Hedge Industry VIP ETF Brochure

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Access to the Treasury Market

GSAM developed an ETF that provides access to Treasuries with a maturity of less than a year, which are backed by the full faith and credit of the US Government. Investors in the Goldman Sachs TreasuryAccess 0-1 Year ETF can gain easy access to Treasury markets while avoiding the operational and pricing complexities of US Treasury Auctions and over-the-counter market.

Introducing the Goldman Sachs TreasuryAccess 0-1 Year ETF (Ticker: GBIL)

The fund seeks to track the Citi US Treasury 0–1 Year Composite Select Index, which is designed to measure the performance of U.S. Treasury Obligations⁴ with a maximum remaining maturity of one year. The Goldman Sachs TreasuryAccess 0–1 Year ETF (Ticker: GBIL) provides access to the Treasury market through a lower cost, convenient and transparent ETF. The fund benefits from the experience of the GSAM Liquidity Solutions team, providing trade execution, price negotiation and security selection in the short-term Treasury market.

The Advantages of Investing in GBIL

Any guarantee on U.S Treasury Obligations applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares.

Individual shares may only be purchased and sold in secondary market transactions through brokers; shares trade at market prices rather than NAV; shares may trade at a price greater than or less than NAV; and investors may incur commission costs when buying or selling shares.

The Fund is not a money market fund and does not attempt to maintain a stable net asset value.

TreasuryAccess ETF Brochure

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Goldman Sachs Exchange-Traded Funds

At Goldman Sachs Asset Management, we have a history of investment innovation—grounded in our commitment to provide clients with solutions that keep up with changing times. Our skilled investment teams manage a variety of advanced strategies** that capitalize on our global reach and deep knowledge of the markets. By offering these advanced strategies as Goldman Sachs ETFs, we continue this legacy and lead the way for the next generation of ETF investing.

Please note that the fund managers of the Goldman Sachs ActiveBeta™ ETFs are Raj Garigipati and Jamie McGregor. Please refer to the Prospectus for further information.

Trading Ease refers to the ability of ETFs to be bought and sold throughout the day, providing trading flexibility
Transparency refers to the extent to which investors have ready access to any required financial information about a company such as price levels, market depth and audited financial reports.
Tax Efficiency refers to low portfolio turnover which can help manage the impact of capital gains taxes.

Goldman Sachs does not provide accounting, tax, or legal advice. Notwithstanding anything in this document to the contrary, and except as required to enable compliance with applicable securities law, you may disclose to any person the US federal and state income tax treatment and tax structure of the transaction and all materials of any kind (including tax opinions and other tax analyses) that are provided to you relating to such tax treatment and tax structure, without Goldman Sachs imposing any limitation of any kind. Investors should be aware that a determination of the tax consequences to them should take into account their specific circumstances and that the tax law is subject to change in the future or retroactively and investors are strongly urged to consult with their own tax advisor regarding any potential strategy, investment or transaction. Equity securities are more volatile than bonds and subject to greater risks. We note that ETFs are not riskless investments, so investors can lose money. Ordinary brokerage commissions apply. Brokerage commissions will reduce returns. ActiveBeta is a registered trademark of GSAM. 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).

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.

Goldman Sachs ActiveBeta™ U.S. Large Cap Equity ETF

The Goldman Sachs ActiveBeta™ U.S. Large Cap Equity ETF 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. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors.

Goldman Sachs ActiveBeta™ International Equity ETF
The Goldman Sachs ActiveBeta™ International Equity ETF 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 market issuers outside of the United States and Canada, specifically in Europe, Australasia and the Far East. 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. 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 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 is not actively managed, and therefore the Fund will not generally dispose of a security unless the security is removed from the Index. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors.

ETF Fund shares are not individually redeemable and are issued and redeemed by a 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 Goldman Sachs ActiveBeta™ exchange-traded fund (each, a “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of its respective index (each, an “Index”). A 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 a Fund may concentrate its investments in an industry or group of industries to the extent that its respective 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. Each Fund is not actively managed, and therefore a Fund will not generally dispose of a security unless the security is removed from its respective Index. A Fund’s performance may vary substantially from the performance of its respective Index as a result of transaction costs, expenses and other factors.

The Goldman Sachs Hedge Industry VIP ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs Hedge Fund VIP Index (the “Index”), which delivers exposure to equity securities whose performance is expected to influence the long portfolios of hedge funds. 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 mayconcentrate 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. Because certain information used to construct the Index may be stale at the time of its use and due to other reasons, the Index may not be effective in delivering exposure to equity securities whose performance is expected to influence the long portfolios of hedge funds. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors. The Fund is not a hedge fund and does not invest in hedge funds.

The Goldman Sachs TreasuryAccess 0–1 Year ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Citi US Treasury 0–1 Year Composite Select Index (the “Index”), which is designed to measure the performance of U.S. Treasury Obligations with a maximum remaining maturity of 12 months. The Fund’s investments are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. Any guarantee on U.S. Treasury Obligations applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares. 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. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors. The Fund is not a money market fund and does not attempt to maintain a stable net asset value.

ETF Risk Disclosures
Exchange-Traded Funds are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed, or sold, may be worth more or less than their original cost. ETFs may yield investment results that, before expenses, generally correspond to the price and yield of a particular index. There is no assurance that the price and yield performance of the index can be fully matched. Please see GSETFS.com for additional risk considerations.

General Disclosures

ActiveBeta Index Disclosure
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.

Diversification does not protect an investor from market risk and does not ensure a profit.

Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.

Ordinary brokerage commissions apply.

ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETF Trust.
ALPS Distributors, Inc. 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 and Citigroup, Inc.
ALPS Control: the code is 72340-OUT ED11/3/2017

The Citi US Treasury 0-1 Year Composite Select Index (the “Index”). The Index was developed and is calculated and maintained by Citigroup Index LLC (“Citigroup Index” or the “Index Provider”). Citigroup Index is not affiliated with the Fund or GSAM. The Fund is not sponsored, endorsed, sold or promoted by Citigroup Index or any of its affiliates and Citigroup Index makes no representation to any owner or prospective owner of the Fund regarding the advisability of investing in securities generally or in the Fund particularly, or the ability of the Fund to track the price and yield performance of the Index or the ability of the Index to track general bond market performance. Citigroup Index’s only relationship to GSAM (“Licensee”) is the licensing of certain information, data, trademarks and trade names of Citigroup Index or its affiliates. The Index is determined, composed and calculated by Citigroup Index without regard to the Fund. Citigroup Index has no obligation to take the needs of the owners or prospective owners of the Fund into consideration in determining, composing or calculating the Index. Citigroup Index is not responsible for and has not participated in the determination of the prices and amount of the shares to be issued by the Fund or the timing of the issuance or sale of the shares to be issued by the Fund or in the determination or calculation of the equation by which the shares to be issued by the Fund are to be converted into cash. Citigroup Index has no obligation or liability in connection with the administration, marketing or trading of the Fund.

CITIGROUP INDEX DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN, OR OF ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO, AND CITIGROUP INDEX SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN. CITIGROUP INDEX MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OR PROSPECTIVE OWNERS OF SHARES OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN. CITIGROUP INDEX MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL CITIGROUP INDEX HAVE ANY LIABILITY FOR ANY DIRECT, SPECIAL, PUNITIVE, INDIRECT, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.

CITI is a trademark and service mark of Citigroup Inc. or its affiliates, is used and registered throughout the world, and is used under license for certain purposes by GSAM.

Next Generation of ETF Investing

What Are the Potential Benefits of ETFs?

Exponential Growth of the ETF Market

Next Generation of Equity Index Investing

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