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).
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.
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.
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.
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.
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.
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.
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.
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.
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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.
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 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.
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.
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.
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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.
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 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.
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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.
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.
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.
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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.