Ticker: GSSC Stock Exchange: NYSE Arca
Before you invest, you may want to review the Goldman Sachs ActiveBeta® U.S. Small Cap Equity
ETFs (the Fund) Prospectus, which contains more information about the Fund and its risks. You can find the Funds Prospectus, reports to shareholders and other information about the Fund online at
www.gsamfunds.com/ETFfunds. You can also get this information at no cost by calling 800-621-2550 or by sending an e-mail
request to gs-funds-document-requests@gs.com. The Funds Prospectus and Statement of Additional Information (SAI), both dated December 27, 2019, are incorporated by reference into this
Summary Prospectus.
It is our intention that beginning on January 1, 2021, paper copies of the Funds annual and semi-annual shareholder reports
will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and
provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this
change and you need not take any action. At any time, you may elect to receive reports and certain communications from the Fund electronically by contacting your financial intermediary.
You may elect to receive all future shareholder reports in paper free of charge. You can inform your financial intermediary that you wish to receive paper
copies of reports by contacting your financial intermediary. Your election to receive reports in paper will apply to all Goldman Sachs Funds held in your account.
The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance
of the Goldman Sachs ActiveBeta® U.S. Small Cap Equity Index (the Index).
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FEES AND EXPENSES OF THE FUND
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The following table describes the fees and expenses that you may pay if you buy and hold Shares of the Fund. The
table does not take into account brokerage commissions that you may pay on your purchases and sales of Shares of the Fund.
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment):
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Management Fee
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0.20
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%
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Distribution and Service (12b-1) Fee
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0.00
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%
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Other Expenses
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0.00
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%
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Total Annual Fund Operating Expenses
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0.20
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%
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2 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® U.S. SMALL CAP EQUITY ETF
This Example is intended to help you compare the cost of owning Shares of the Fund with the cost of investing in
other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the
Funds operating expenses remain the same. The Example does not take into account brokerage commissions that you may pay on your purchases and sales of Shares of the Fund. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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Shares
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$ 20
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$ 64
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$ 113
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$ 255
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The Fund may pay transaction costs when it buys and sells securities or instruments (i.e., turns
over its portfolio). A high rate of portfolio turnover may result in increased transaction costs, including brokerage commissions, which must be borne by the Fund and its shareholders, and is also likely to result in higher short-term capital
gains for taxable shareholders. These costs are not reflected in total annual fund operating expenses or in the expense example above, but are reflected in the Funds performance. The Funds portfolio turnover rate for the fiscal year
ended August 31, 2019 was 20% of the average value of its portfolio.
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PRINCIPAL INVESTMENT STRATEGIES
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The Fund seeks to achieve its investment objective by investing at least 80% of its assets (exclusive of
collateral held from securities lending) in securities included in its underlying index, in depositary receipts representing securities included in its underlying index and in underlying stocks in respect of depositary receipts included in its
underlying index.
The Index is designed to deliver exposure to equity securities of small 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 stocks
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 companys
share price is trending up or down), quality (i.e., profitability) and low volatility (i.e., a relatively low degree of fluctuation in a companys share price over time). Given the Funds 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.
Goldman Sachs Asset Management, L.P. (the Index Provider) constructs the Index in accordance with a rules-based methodology that involves two
steps.
Step 1
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In the first step, individual factor subindexes for value, momentum, quality and low volatility (the ActiveBeta® Factor Subindexes) are created from the constituents of the Russell 2000® Index (the Reference Index), a market
capitalization-weighted index. To construct each ActiveBeta® Factor Subindex, all constituents in the Reference Index are assigned a factor score based on certain specified
measurements (for example, in the case of the value factor, the factor score is based on a composite of book value-to-price, sales-to-price and free cash flow-to-price). Securities with a factor score that is above a fixed
Cut-off Score receive an overweight in the applicable ActiveBeta® Factor Subindex relative to the Reference Index and securities with a
factor score that is below the Cut-off Score receive an underweight in the ActiveBeta® Factor Subindex relative to the Reference Index. Accordingly, the
magnitude of overweight or underweight that a security receives in constructing the applicable ActiveBeta® Factor Subindex is determined by its attractiveness when evaluated based on the
relevant factor. The Index only includes long positions (i.e., short positions are impermissible), so the smallest weight for any given security is zero.
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Step 2
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The ActiveBeta® Factor Subindexes are combined in equal weights to
form the Index.
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The Index is rebalanced on a quarterly basis in accordance with the published rebalancing schedule of the Reference
Index. The rules-based process used to construct the Index incorporates the ActiveBeta® Turnover Minimization Technique, which seeks to reduce turnover within the Index.
As of November 29, 2019, the Index consisted of 1,410 securities with a market capitalization range of between approximately $583 million and
$9.12 billion. The components of the Index may change over time. The percentage of the portfolio exposed to any asset class will vary from time to time as the weightings of the securities within the Index change, and the Fund may not be
invested in each asset class at all times. The Index Provider determines whether an issuer is a U.S. issuer by reference to the Reference Index methodology. FTSE Russell, which constructs the Reference Index, will deem an issuer to be a U.S. issuer
if it is incorporated in, has a stated headquarters in, and trades in the U.S.; if any of these do not match, the Reference Index methodology provides for consideration of certain additional factors.
The Fund seeks to invest in the Index components in approximately the same weighting that such components have within the Index at the applicable time. The
Fund may purchase a sample of securities in its Index. There may also be instances in which the Investment Adviser may choose to underweight or overweight a security in the Funds Index, purchase securities not in the Funds Index that the
Investment Adviser believes are appropriate to substitute for certain securities in such Index or utilize various combinations of other available investment techniques.
3 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® U.S. SMALL CAP EQUITY ETF
The Fund may concentrate its investments (i.e., hold more than 25% of its total assets) in a particular
industry or group of industries to the extent that its Index is concentrated. The degree to which components of the Index represent certain sectors or industries may change over time.
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PRINCIPAL RISKS OF THE FUND
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Loss of money is a risk of investing in the Fund. An investment in the Fund is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any government agency. The Fund should not be relied upon as a complete investment program. There can be no assurance that the Fund will achieve its investment
objective. Investments in the Fund involve substantial risks which prospective investors should consider carefully before investing.
Calculation
Methodology Risk. The Index relies on various sources of information to assess the criteria of issuers included in the Index (or the Reference Index), including information that may be based on assumptions and estimates. Neither the Fund,
the Index Provider, Solactive AG (the Calculation Agent) nor the Investment Adviser can offer assurances that the Indexs calculation methodology or sources of information will provide an accurate assessment of included issuers or a
correct valuation of securities, nor can they guarantee the availability or timeliness of the production of the Index.
Index Risk. The Fund
will be negatively affected by general declines in the securities and asset classes represented in the Index. In addition, because the Fund is not actively managed, unless a specific security is removed from the Index, the Fund generally
would not sell a security because the securitys issuer was in financial trouble, and the Fund does not take defensive positions in declining markets. Market disruptions and regulatory restrictions could have an adverse effect on the
Funds ability to adjust its exposure to the required levels in order to track the Index. The Index Provider relies on third party data it believes to be reliable in constructing the Index, but it does not guarantee the accuracy or availability
of such third party data, and there is also no guarantee with respect to the accuracy, availability or timeliness of the production of the Index.
Industry Concentration Risk. In following its methodology, the Index from time to time may be concentrated to a significant degree in securities
of issuers located in a single industry or group of industries. To the extent that the Index concentrates in the securities of issuers in a particular industry or group of industries, the Fund also may concentrate its investments to approximately
the same extent. By concentrating its investments in an industry or group of industries, the Fund may face more risks than if it were diversified broadly over numerous industries or groups of industries. If the Index is not concentrated in a
particular industry or group of industries, the Fund will not concentrate in a particular industry or group of industries.
Investment Style Risk.
The Index is intended to provide exposure to the small cap U.S. equity markets, and as a result the Index may be more volatile than a more broadly based conventional index. The Fund may outperform or underperform other funds that invest in
similar asset classes but employ different investment styles.
Large Shareholder Risk. Certain shareholders, including other funds advised by
the Investment Adviser, may from time to time own a substantial amount of the Funds Shares. In addition, a third party investor, the Investment Adviser or an affiliate of the Investment Adviser, an authorized participant, a lead market maker,
or another entity (i.e., a seed investor) may invest in the Fund and hold its investment solely to facilitate commencement of the Fund or to facilitate the Funds achieving a specified size or scale. Any such investment may be held for a
limited period of time. There can be no assurance that any large shareholder would not redeem its investment, that the size of the Fund would be maintained at such levels or that the Fund would continue to meet applicable listing requirements.
Redemptions by large shareholders could have a significant negative impact on the Fund, including on the Funds liquidity. In addition, transactions by large shareholders may account for a large percentage of the trading volume on NYSE Arca,
Inc. (NYSE Arca) and may, therefore, have a material upward or downward effect on the market price of the Shares.
Market Risk.
The value of the securities in which the Fund invests may go up or down in response to the prospects of individual companies, particular sectors or governments and/or general economic conditions throughout the world due to increasingly
interconnected global economies and financial markets.
Market Trading Risk. The net asset value (NAV) of the Fund and the value
of your investment may fluctuate. Market prices of Shares may fluctuate in response to the Funds NAV, the intraday value of the Funds holdings and supply and demand for Shares. The Fund faces numerous market trading risks, including
disruptions to creations and redemptions, the existence of extreme market volatility or potential lack of an active trading market for Shares. Any of these factors, among others, may result in Shares trading at a significant premium or discount to
NAV, which will be reflected in the intraday bid/ask spreads and/or the closing price of Shares as compared to NAV. If a shareholder purchases Shares at a time when the market price is at a premium to the NAV or sells Shares at a time when the
market price is at a discount to the NAV, the shareholder may sustain losses.
Mid-Cap and Small-Cap Risk. Investments in mid-capitalization and small-capitalization companies involve greater risks than those associated with larger, more established
companies. These securities may be subject to more abrupt or erratic price movements and may lack sufficient market liquidity, and these issuers often face greater business risks.
Stock Risk. Stock prices have historically risen and fallen in periodic cycles. U.S. stock markets have experienced periods of substantial price
volatility in the past and may do so again in the future.
Tracking Error Risk. Tracking error is the divergence of the Funds
performance from that of the Index. The performance of the Fund may diverge from that of its Index for a number of reasons. Tracking error may occur because of transaction costs, the Funds holding of cash, differences in accrual of dividends,
changes to the Index or the need to meet new or existing regulatory requirements. Unlike the Fund, the returns of the Index are not reduced by investment and other operating expenses,
4 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® U.S. SMALL CAP EQUITY ETF
including the trading costs associated with implementing changes to its portfolio of investments. Tracking error
risk may be heightened during times of market volatility or other unusual market conditions. The Fund may be required to deviate its investments from the securities and relative weightings of the Index to comply with the Investment Company Act of
1940, as amended (the Investment Company Act), to meet the issuer diversification requirements of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies, or as a result of local
market restrictions, or other legal reasons, including regulatory limits or other restrictions on securities that may be purchased by the Investment Adviser and its affiliates.
Valuation Risk. The sale price the Fund could receive for a security may differ from the Funds valuation of the security and may differ
from the value used by the Index, particularly for securities that trade in low volume or volatile markets or that are valued using a fair value methodology. The Fund relies on various sources to calculate its NAV. The information may be provided by
third parties that are believed to be reliable, but the information may not be accurate due to errors by such pricing sources, technological issues or otherwise.
The bar chart and table below provide an indication of the risks of investing in the Fund by showing:
(a) changes in the performance of the Funds Shares from year to year; and (b) how the average annual total returns of the Funds Shares compare to those of the Funds Index and a broad-based securities market index. The
Funds past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at no cost at www.gsamfunds.com/performance or by calling the
appropriate phone number on the back cover of the Prospectus.
AVERAGE ANNUAL TOTAL RETURN
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For the period ended
December 31, 2018
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1 Year
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Since
Inception
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ActiveBeta® U.S. Small Cap Equity ETF (Inception 6/28/2017)
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Returns Before Taxes
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-8.72%
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-1.22%
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Returns After Taxes on Distributions
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-8.99%
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-1.56%
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Returns After Taxes on Distributions and Sale of Fund Shares
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-5.00%
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-0.96%
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Goldman Sachs ActiveBeta® U.S. Small Cap Equity Index (reflects no deduction for fees or expenses)
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-8.84%
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-1.19%
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Russell 2000® Index (reflects no deduction for fees or expenses)
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-11.01%
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-2.32%
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After-tax returns are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. In addition, the after-tax returns shown are not relevant to investors who hold Fund Shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
Goldman Sachs Asset Management, L.P. is the investment adviser for the Fund (the Investment Adviser or
GSAM).
Portfolio Managers: Raj Garigipati, Managing Director, and Jamie McGregor, Vice President, have each managed the Fund
since 2017.
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BUYING AND SELLING FUND SHARES
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The Fund will issue and redeem Shares at NAV only in a large specified number of Shares each called a
Creation Unit, or multiples thereof. A Creation Unit consists of 50,000 Shares.
Individual Shares of the Fund may only be purchased and sold
in secondary market transactions through brokers. Shares of the Fund are listed and traded on the NYSE Arca. Shares trade at market prices rather than NAV; therefore, Shares of the Fund may trade at a price greater than or less than NAV.
The Funds distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Investments made through tax-deferred arrangements may become
taxable upon withdrawal from such arrangements.
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PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
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If you purchase Shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), GSAM
or other related companies may pay the intermediary for the sale of Fund Shares or related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial intermediarys website for more information.
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