Ticker:
GEM Stock Exchange: NYSE Arca
Before you invest, you may want to review the
Goldman Sachs ActiveBeta® Emerging Markets 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® Emerging Markets Equity Index (the Index).
|
|
|
FEES AND EXPENSES OF THE FUND
|
|
|
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)
|
|
|
|
|
Management Fee
|
|
|
0.40
|
%
|
Distribution and Service (12b-1) Fee
|
|
|
0.00
|
%
|
Other Expenses
|
|
|
0.11
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.51
|
%
|
Expense Limitation1
|
|
|
(0.06
|
)%
|
Total Annual Fund Operating Expenses After Expense
Limitation
|
|
|
0.45
|
%
|
1
|
The Investment Adviser has agreed to reduce or limit Other Expenses (excluding acquired fund fees
and expenses, taxes, interest, brokerage fees, expenses of shareholder meetings, litigation and indemnification, and extraordinary expenses) to 0.05% of the Funds average daily net assets. This arrangement will remain in effect permanently.
The Investment Adviser may not terminate the arrangement without the approval of the Board of Trustees.
|
2 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® EMERGING MARKETS 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 and expense limitation arrangement 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:
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
Shares
|
|
$ 46
|
|
$ 158
|
|
$ 279
|
|
$ 635
|
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 28% of the average value of its portfolio.
|
|
|
PRINCIPAL INVESTMENT STRATEGIES
|
|
|
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 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 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
◾
|
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 MSCI Emerging Markets 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.
|
Step 2
◾
|
The ActiveBeta® Factor Subindexes are combined in equal weights to
form the Index.
|
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 433 securities with a market capitalization range of between approximately $162 million and
$535 billion from issuers in the following emerging market countries: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, Saudi
Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. The components of the Index may change over time. The percentage of the portfolio exposed to any asset class, country or geographic region 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, country or geographic region at all times. The Index Provider determines whether an issuer is located in an emerging market country by
reference to the Reference Index methodology. MSCI Inc., which constructs the Reference Index, will generally deem an issuer to be located in an emerging market country if it is organized under the laws of the emerging market country and it is
primarily listed in the emerging market country; in the event that these factors point to more than one country, the Reference Index methodology provides for consideration of certain additional factors.
The Index is comprised of equity securities, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). 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
3 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® EMERGING MARKETS EQUITY ETF
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.
The Fund may also invest up to 20% of its assets in securities and other instruments not included in its Index
but which the Investment Adviser believes are correlated to its Index, as well as in, among other instruments, futures (including index futures), swaps, other derivatives, investment companies (including exchange-traded funds (ETFs)),
preferred stocks, warrants and rights, cash and cash equivalents and money market instruments.
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.
|
|
|
PRINCIPAL RISKS OF THE FUND
|
|
|
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.
Cash Transactions Risk.
Unlike certain ETFs, the Fund expects to effect its creations and redemptions partially for cash, rather than primarily for in-kind securities. As such, investments in Shares may be less tax-efficient than an investment in a conventional ETF which generally are able to make in-kind redemptions and avoid realizing gains in connection with transactions designed
to raise cash to meet redemption requests.
Depositary Receipts Risk. Foreign securities may trade in the form of depositary receipts, which
include ADRs and GDRs (collectively Depositary Receipts). To the extent the Fund acquires Depositary Receipts through banks which do not have a contractual relationship with the foreign issuer of the security underlying the Depositary
Receipts to issue and service such unsponsored Depositary Receipts, there may be an increased possibility that the Fund would not become aware of and be able to respond to corporate actions such as stock splits or rights offerings involving the
foreign issuer in a timely manner. In addition, the lack of information may result in inefficiencies in the valuation of such instruments. Investment in Depositary Receipts does not eliminate all the risks inherent in investing in securities of non-U.S. issuers. The market value of Depositary Receipts is dependent upon the market value of the underlying securities and fluctuations in the relative value of the currencies in which the Depositary Receipts and
the underlying securities are quoted.
Expenses Risk. By investing in pooled investment vehicles (including ETFs) indirectly through the
Fund, the investor will incur not only a proportionate share of the expenses of the other pooled investment vehicles held by the Fund (including operating costs and investment management fees), but also expenses of the Fund.
Foreign and Emerging Countries Risk. Foreign securities may be subject to risk of loss because of more or less foreign government regulation,
less public information and less economic, political and social stability in the countries in which the Fund invests. The imposition of exchange controls, sanctions, confiscations, trade restrictions (including tariffs) and other government
restrictions by the United States and other governments, or from problems in share registration, settlement or custody, may also result in losses. Foreign risk also involves the risk of negative foreign currency rate fluctuations, which may cause
the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. These
risks may be more pronounced in connection with the Funds investments in securities of issuers located in emerging countries. The securities markets of most emerging countries are less liquid, developed and efficient, are subject to greater
price volatility, have smaller market capitalizations, have more or less government regulation and may not be subject to as extensive and frequent accounting, financial and other reporting requirements as the securities markets of more developed
countries. Further, investment in securities of issuers located in certain emerging countries involves the risk of loss resulting from problems in share registration, settlement or custody, substantial economic, political and social disruptions and
the imposition of exchange controls (including repatriation restrictions). These risks are not normally associated with investments in more developed countries.
Geographic Risk. If the Fund focuses its investments in issuers located in a particular country or geographic region, it will subject the Fund,
to a greater extent than if investments were less focused, to the risks of volatile economic cycles and/or conditions and developments that may be particular to that country or region, such as: adverse securities markets; adverse exchange rates;
adverse social, political, regulatory, economic, business, environmental or other developments; or natural disasters.
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
4 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® EMERGING MARKETS EQUITY ETF
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 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 certain emerging 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 some cases significantly, 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. Additionally, in stressed market conditions, the market for Shares may become less liquid in response to deteriorating liquidity in the markets for the Funds underlying portfolio holdings.
The securities held by the Fund may be traded in markets that close at a different time than the stock exchange on which the Funds Shares are listed.
Liquidity in those securities may be reduced after the applicable closing times. Accordingly, during the time when the Funds listing exchange is open but after the applicable market closing, fixing or settlement times, bid-ask spreads and the resulting premium or discount to the Shares NAV may widen.
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.
Seed Investor Risk. GSAM and/or its affiliates may make payments to one or more investors that contribute seed capital to the Fund. Such payments
may continue for a specified period of time and/or until a specified dollar amount is reached. Those payments will be made from the assets of GSAM and/or such affiliates (and not the Fund). Seed investors may contribute all or a majority of the
assets in the Fund. There is a risk that such seed investors may redeem their investments in the Fund, particularly after payments from GSAM and/or its affiliates have ceased. As with redemptions by other large shareholders, such redemptions could
have a significant negative impact on the Fund, including on the Funds liquidity and the market price of the Funds shares.
Stock
Risk. Stock prices have historically risen and fallen in periodic cycles. U.S. and foreign 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, 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. These risks may be greater given the Funds investment in non-investment grade securities with more volatility in price and
liquidity. 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,
5 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® EMERGING MARKETS EQUITY ETF
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. Because non-U.S. exchanges may be open on days when
the Fund does not price its Shares, the value of the securities or assets in the Funds portfolio may change on days when investors will not be able to purchase or sell the Funds Shares. 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.
Performance reflects applicable fee waivers and/or expense limitations in effect during the
periods shown.
AVERAGE ANNUAL TOTAL RETURN
|
|
|
|
|
|
|
|
|
For the period ended
December 31, 2018
|
|
1 Year
|
|
|
Since
Inception
|
|
ActiveBeta® Emerging Markets Equity ETF (Inception 9/25/15)
|
|
|
|
|
|
|
|
|
Returns Before Taxes
|
|
|
-13.51%
|
|
|
|
7.98%
|
|
Returns After Taxes on Distributions
|
|
|
-13.80%
|
|
|
|
7.61%
|
|
Returns After Taxes on Distributions and Sale of Fund Shares
|
|
|
-7.58%
|
|
|
|
6.30%
|
|
Goldman Sachs ActiveBeta® Emerging Markets Equity Index (reflects no deduction for fees or expenses)
|
|
|
-13.29%
|
|
|
|
8.30%
|
|
MSCI Emerging Markets Index (Net, Unhedged; reflects no
deduction for fees or expenses)
|
|
|
-14.57%
|
|
|
|
8.80%
|
|
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.
6 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® EMERGING MARKETS EQUITY ETF
Goldman Sachs Asset Management, L.P. is the investment adviser for the Fund (the Investment Adviser or
GSAM).
Portfolio Managers: Raj Garigipati, Managing Director, has managed the Fund since inception and Jamie McGregor, Vice
President, has managed the Fund since 2016.
|
|
|
BUYING AND SELLING FUND SHARES
|
|
|
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 200,000 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.
|
|
|
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
|
|
|
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.
7 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® EMERGING MARKETS EQUITY ETF
[THIS PAGE LEFT INTENTIONALLY BLANK]
8 SUMMARY PROSPECTUS GOLDMAN SACHS ACTIVEBETA® EMERGING MARKETS EQUITY ETF
ACTBETASUM1-19
Goldman Sachs Just Us La... (AMEX:JUST)
Historical Stock Chart
From Jun 2024 to Jul 2024
Goldman Sachs Just Us La... (AMEX:JUST)
Historical Stock Chart
From Jul 2023 to Jul 2024